Question

How much does it cost to produce one doorbell at each production level? 12pt Paragraph BIUA TPU : Average cost of producing 100 doorbells-five hundred divided by 100 doorbells equals five. Average cost for producing 150 doorbells equals nine hundred divided by 150 doorbells equal six. р 29 words Question 2 5 pts The Company should pick a production of 150 doorbells if the price is above? $____ 12pt Paragraph B 1 Avev T²v о від е 26

Answer 1

• The above question works on the concept of shut down
• in simple words if average revenue is less than the average variable cost in the firm will opt for the shut down
• in other words if price is less than the average variable cost then the firm will go for the shut down
• now from the given question if the company produces $150 doorbells
• Then the average variable cost is $6 in order to continue to production by the company of doorbells
• it needs to have market price of at least $6 per doorbell

Hence the answer is =$6