Apply critical thinking to use principles of sound reasoning.
Assignment
Define and calculate six major cost elements of a business when given the total costs and the quantity produced.
Use the computed costs to determine a minimum cost output level for that business. Next, you will compute both the break-even price and the shutdown price for a hypothetical business in a perfectly competitive market.
Determine if that business would incur an economic profit at various market prices and assess if the business should continue to produce at each of those price levels.