The following is a table of the lawn mowing business. Look at the table below and answer some of the questions! ATC AVC Q 0 1 2345 6 7 8 9 VC $0 2 3.5 5.5 8 11 15 21 29 39 TC $7 9 10.5 12.5 15 18 22 28 36 46 - $9 5.25 4.167 3.75 3.6 3.67 4 4.5 5.11 - $2 1.75 1.83 2 2.2 2.5 3 3.625 4.33 MC $2 1.5 2 2.5 3 468 10 a. If the market price for mowing is $9 per grass, how much grass will be cut? How much the profit? Show your answer graphically! b. At what price will the business break even? c. At what price will the business lose, but continue to produce in the short run?

The following is a table of the lawn mowing business. Look at the table below and answer some of the questions! ATC AVC Q 0 1 2345 6 7 8 9 VC $0 2 3.5 5.5 8 11 15 21 29 39 TC $7 9 10.5 12.5 15 18 22 28 36 46 - $9 5.25 4.167 3.75 3.6 3.67 4 4.5 5.11 - $2 1.75 1.83 2 2.2 2.5 3 3.625 4.33 MC $2 1.5 2 2.5 3 468 10 a. If the market price for mowing is $9 per grass, how much grass will be cut? How much the profit? Show your answer graphically! b. At what price will the business break even? c. At what price will the business lose, but continue to produce in the short run?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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