What is the breakeven price for each firm

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Each firm in the perfectly competitive widget industry produces with the levels of marginal cost (MC) and total variable cost (TVC) at various levels of output Q shown in the following table. Each firm has a total fixed cost of 64 and a sunk fixed cost of 48.

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a) Draw a clearly labeled graph of the short-run supply schedule for this firm. Be sure to indicate the shutdown price for each firm and to explain your reasoning for the shape of the supply curve.

b) What is each firm's producer surplus when the market price is 16?

c) What is the breakeven price for each firm?

Reference no: EM131248446

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