Homework answers / question archive / Consider a firm with the following costs of production: Cost of production Units of output produced 0 1 2 3 4 5 Total Cost $0 $12 $24 $36 $48 $60 $72 $84 $96 $108 $120 $132 $144 6 7 8 9 10 11 12 Part 1: If the firm is a profit-maximizing firm in a competitive market, the firm can break even if the market price equals $ per unit

Consider a firm with the following costs of production: Cost of production Units of output produced 0 1 2 3 4 5 Total Cost $0 $12 $24 $36 $48 $60 $72 $84 $96 $108 $120 $132 $144 6 7 8 9 10 11 12 Part 1: If the firm is a profit-maximizing firm in a competitive market, the firm can break even if the market price equals $ per unit

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Consider a firm with the following costs of production: Cost of production Units of output produced 0 1 2 3 4 5 Total Cost $0 $12 $24 $36 $48 $60 $72 $84 $96 $108 $120 $132 $144 6 7 8 9 10 11 12 Part 1: If the firm is a profit-maximizing firm in a competitive market, the firm can break even if the market price equals $ per unit. Hint: "the firm can break even" means that the firm's total revenue equals the firm's total cost, or QxP=QxAC(where Q is the quantity, P is the price, and AC is the average cost). Part 2: Suppose that the market price equals $11 per unit. The firm should: A. produce some output. The firm will cover the variable cost and some of the fixed cost, so it will lose money (it will earn less than zero profits). B. produce some output. The firm will cover the variable cost exactly, but none of the fixed cost, so it will lose money (it will earn less than zero profits). C. not produce any output. The firm will experience a loss (it will earn less than zero profits). D. not produce any output. The firm will not experience a loss (it will earn exactly zero profits). Please fill your answer in the blank area below.