competitive business. The market price is currently $1 per poster. She has fixed
ID: 1109548 • Letter: C
Question
competitive business. The market price is currently $1 per poster. She has fixed costs of $100. Her variable are $2,000 for the first thousand posters, $1,600 for the second thousand, and then $1,000 for each additional thousand posters. Instructions: Round your answers to 3 decimal places Karen runs a print shop that makes posters for large companies. It is a very what is her AFC per poster (not per thousand) if she prints 1,000 posters? S What if she prints 2,000 posters? $ What if she prints 10,000 posters?$ b. What is her ATC per poster if she prints 1,000?$ What t she prints 2,000? s What if she prints 10,000?$ c. Ifthe market price fell to 95 cents per poster, would there be any output level at which Karen would not shut down production immed atel S88 5 7 8 9Explanation / Answer
a.
AFC per poster (at 1000 posters)=100/1000=0.100
AFC per poster (at 2000 posters)=100/2000=0.050
AFC per poster (at 10000 posters)=100/10000=0.010
b.
ATC per poster (at 1000 posters)=(100+2000)/1000=2.100
ATC per poster (at 2000 posters)=(100+2000+1600)/2000=1.850
ATC per poster (at 10000 posters)=(100+2000+1600+8*1000)/10000=1.170
c.
no is the answer
because 95 cents is below the minimu average variable cost of $1
the above are the answers
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