- Joe’s Widget Factory operates in a perfectly competitive industry. Joe’s fixed and variable costs are given in the table below. He is a price taker and can sell as many widgets as he produces for $10 each. Complete the table using the provided link and respond to the following questions. Besides referring to your table to support your answers, include references from the course materials on profit-maximizing rules for competitive firms.
- What is the profit maximizing (or loss minimizing) level of output in the short run?
- What is the profit maximizing level of output in the long run?
- What are the shut-down prices in the short run and long run?
- What is the firm’s supply curve?
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