The Banana computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $ 250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $ 500 for the seventh. Create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost. A At what price is the zero-profit point? At what price is the shutdown point? B If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss. C If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss? D Sketch a graph with AC, MC, and AVC curves to illustrate your answer and show the profit or loss.
The Banana computer company produces affordable, easy-to-use home computer systems and
has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $
250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $
500 for the seventh. Create a table that shows the company's output, total cost, marginal cost,
average cost, variable cost, and
what price is the shutdown point? B If the company sells the computers for $500, is it making a profit
or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVC
answer and show the profit or loss. C If the firm sells the computers for $300, is it making a profit or a
loss? How big is the profit or loss? D Sketch a graph with AC, MC, and AVC curves to illustrate your
answer and show the profit or loss.
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