What price is the zero-profit point

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Reference no: EM133500512

Question: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $800 for the first computer, $350 for the second, $400 for the third, $450 for the fourth, $500 for the fifth, $550 for the sixth, and $600 for the seventh.

What is the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost.
At what price is the zero-profit point? At what price is the shutdown point?
If the company sells the computers for $600, is it making a profit or a loss? How big is the profit or loss?
If the firm sells the computers for $450, is it making a profit or a loss? How big is the profit or loss?

Reference no: EM133500512

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