Break Even Price and Shut Down Price -- Calculate and Interpret скачать в хорошем качестве

Break Even Price and Shut Down Price -- Calculate and Interpret

Given firm cost information (and given a perfectly competitive market), we'll find the shutdown price and breakeven price. More videos at: https://sites.google.com/site/curtisk... ------------------------------------------------------------ How do I calculate break-even price? Plus some interpretation: 1:50 How do I find break-even price? Plus some interpretation: 7:00  ----------------------------------------------------------- Consider Bob's DVD company described in a previous problem: ("Problem 4" discussed here:    • Firm Entry and Exit - Will Firms Enter or ...  ) Assume that DVD production is a perfectly competitive industry. For each of the following questions, explain your answers. a. What is Bob's break-even price? (13.83) What is his shut-down price? ($3) b. Suppose the price of a DVD is $2. What should Bob do in the short run? c. Suppose the price of a DVD is $7. What is the profit-maximizing quantity of DVDs that Bob should produce? What will his total profit be? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? d. Suppose instead that the price of DVDs is $20. Now what is the profitmaximizing quantity of DVDs that Bob should produce? What will his total profit be now? Will he produce or shut down in the short run? Will he stay in the industry or exit in the long run? Next Problem: "The Firm Supply Curve"    • The Firm's Supply Curve - Given Firm Costs...   -------------------------------------------------------------------------- from Krugman Wells -- Microeconomics 2nd Ed. -- Chapter 13 (Perfect Competition and the Supply Curve), Question 5