At what price should the firm shut down

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Assume that the price of silk ties in a perfectly competitive market is $17 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 8 9 10 Total Cost 17 24 33 44 57 72 89 108 129 152 177

a) What is the profit-maximizing rate of output for the firm?

b) How much profit does the firm earn at that rate of output?

c) If the price of ties fell to $11, how many ties should the firm produce? ties/day

d) At what price should the firm shut down?

Reference no: EM13319185

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