Homework answers / question archive / You are given the following cost data (TVC: total variable cost) of a firm: TVC 0 0 10 2 3 40 1 22 60 4 5 6 100 150 If the price of the output is $25, a) (8 points) Will the firm produce or not produce in the short-run? If it will produce, what will be the quantity? Justify your answer b) (5 points) If the firm decides to expand in the long-run, what is the highest value that the firm's total fixed cost may take?

You are given the following cost data (TVC: total variable cost) of a firm: TVC 0 0 10 2 3 40 1 22 60 4 5 6 100 150 If the price of the output is $25, a) (8 points) Will the firm produce or not produce in the short-run? If it will produce, what will be the quantity? Justify your answer b) (5 points) If the firm decides to expand in the long-run, what is the highest value that the firm's total fixed cost may take?

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You are given the following cost data (TVC: total variable cost) of a firm: TVC 0 0 10 2 3 40 1 22 60 4 5 6 100 150 If the price of the output is $25, a) (8 points) Will the firm produce or not produce in the short-run? If it will produce, what will be the quantity? Justify your answer b) (5 points) If the firm decides to expand in the long-run, what is the highest value that the firm's total fixed cost may take? .) (4 points) Does this firm face diminishing returns in the short-run right from the beginning or after a certain point? Explain your answer.