Use this table to answer the following question. Output Total Variable Cost $1 $20 $2 $24 $3 $33 $4 $40 $5 $45 $6 $60 $7 $77 $8 $96 $9 $180 $10 $200 The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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Use this table to answer the following question.

Output

Total Variable Cost

$1

$20

$2

$24

$3

$33

$4

$40

$5

$45

$6

$60

$7

$77

$8

$96

$9

$180

$10

$200


The government just mandated that all firms must install new technology to reduce pollution. The new technology costs $13. The market price is $8. In the long run, will the firm stay open or shut down?

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