should she produce or shut down? 1 answer below »


Kate’s Katering provides catered abstinences, and the catered abstinences perseverance is fully competitive. Kate’s machinery consumes $100 per day and is the merely fixed input. Her fickle consume consists of the remuneration remunerated to the cooks and the livelihood ingredients. The fickle consume per day associated delay each plane of output is abandoned in the appertaining consideration.

Portion of abstinences

VC

0

$0

10

$200

20

$300

30

$480

40

$700

50

$1,000

a. Calculate the whole consume, the mediocre fickle consume, the mediocre whole consume, and the final consume for each portion of output.

b. What is the break-even appraisement? What is the preclude-down appraisement?

c. Suppose that the appraisement at which Kate can vend catered abstinences is $21 per abstinence. In the narrow run, accomplish Kate deserve a gain? In the narrow run, should she effect or preclude down?

d. Suppose that the appraisement at which Kate can vend catered abstinences is $17 per abstinence. In the narrow run, accomplish Kate deserve a gain? In the narrow run, should she effect or preclude down?

Suppose that the appraisement at which Kate can vend catered abstinences is $13 per abstinence. In the narrow run, accomplish Kate deserve a gain? In the narrow run, should she effect or preclude down?