Question: Company X produces widgets. If it produces 50 widgets per day, its average variable cost is $600 per widget, its average total cost is $1000 per widget, and its marginal cost is $700 per widget. Based on the above information:

1. Determine average fixed costs when the firm produces 50 widgets per day.
2. Determine average total and variable costs for producing 49 widgets.
3. Determine whether the average variable and average total cost curves are rising or falling between production of 49 and 50 widgets per day.
4. If the price per widget is $800, will the firm decide to maintain production at its current rate, increase it, decrease it, or shut down in the short run? Explain your answer.

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Deliverable: Word Document