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Cost Curves Free Response

Cost Curves Free Response. MC. ATC. AVC. AFC. MC. QTY TC MC ATC TVC AVC AFC. ATC. AVC. AFC. 2 ) $20 economic loss (fixed costs are sunk). 1) Yes => 1 to 3 units => ATC decreasing. 3) approx. @ 3-4 units (min of ATC).

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Cost Curves Free Response

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  1. Cost Curves Free Response MC ATC AVC AFC

  2. MC QTY TC MC ATC TVC AVC AFC ATC AVC AFC 2) $20 economic loss (fixed costs are sunk) 1) Yes => 1 to 3 units => ATC decreasing 3) approx. @ 3-4 units (min of ATC) 4) $28 economic profit ($25-$18) X 4 units = $28 4) b. $27 market price 4 units +$36 economic profit ($27-$18) X 4 units = +$36 c. $14 market price 3 units -$9 economic loss ($14-$17) X 3 units = -$9 loss $6 market price 0 units -$20 economic loss fixed costs are sunk! Lose less than opening!

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