# If the firm sells the computers for \$300 is it making a profit or a loss?

A computer company produces affordable easy-touse home computer systems and has fixed costs of \$250 Show more A computer company produces affordable easy-touse home computer systems and has fixed costs of \$250. The marginal cost of producing computers is \$700 for the first computer \$250 for the second \$300 for the third \$350 for the fourth \$400 for the fifth \$450 for the sixth and \$500 for the seventh. a. Create a table that shows the companys output total cost marginal cost average cost variable cost and average variable cost. b. At what price is the zero-profit point? At what price is the shutdown point? c. If the company sells the computers for \$500 is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC MC and AVC curves to illustrate your answer and show the profit or loss. d. If the firm sells the computers for \$300 is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC MC and AVC curves to illustrate your answer and show the profit or loss. Show less

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