Breakeven and Shutdown Points

Suppose a perfectly competitive firm has total cost curve TC = Q3 21 Q2 + 120 Q + 121.
1. What is total fixed cost TFC?

2. What is the equation of the total variable cost curve TVC?

3. What is the equation of the average total cost curve ATC?

4. What is the equation of the average variable cost curve AVC?

5. Use differential calculus to

(a) find the output level at which AVC reaches its minimum value.

(b) verify that you have a minimum.

6. Use differential calculus to

(a) show that the output level at which ATC reaches its minimum value is 11.

(b) verify that you have a minimum.

7. What is the shutdown point?

8. What is the breakeven point?