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John runs a print shop that makes posters for large companies

Accounting

John runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently 1 euro per poster. He has fixed costs of 250 euros. His variable costs are 1,000 euros for the first thousand posters, 800 euros for the second thousand, and then 750 euros for each additional thousand posters.

a. What is his AFC per poster (not per thousand!) if he prints 1000 posters?

b. What is his AFC per poster (not per thousand!) if he prints 2000 posters?

c. What is his AFC per poster (not per thousand!) if he prints 10,000 posters?

d. What is his ATC per poster if he prints 1000 posters?

e. What is his ATC per poster if he prints 2000 posters?

f. What is his ATC per poster if he prints 10,000 posters?

g. If the market price fell to 0.70 euro per poster, would there be any output level at which John would not shut down production immediately?

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