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ning 2 Title BU224M3 In this assessment, you will demonstrate your understanding and ability to define and calculate the six major cost elements of a business, when given the total costs and the quantity produced, as well as use the computed costs to determine a minimum cost output level for that business. In addition, 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 if the business should continue to produce at each of those price levels. In addition, you will also clearly explain how the average total cost of a new output level is affected by its share of fixed costs and variable costs. Directions: Using this Word template, answer the following questions based on the situation. Questions Table 1 shows an LED light bulb manufacturer's total cost of producing LED lightbulbs. Table 1 Cases of LED light Total Cost bulbs produced in an hour 0 $4,500 10 $4,900 20 20,10,30,100,120,180,210 3. In Table 2, for each level of output, insert the following values into the table: a. the Variable Cost (VC): b. the Average Variable Cost (AVC): c. the Average Total Cost (ATC); and, d. the Average Fixed Cost (AFC). Total Cost Variable Average Average Average Costs Variable Total Fixed Costs Costs Cost Table 2 Cases of LED light bulbs produce d in an hour 0 10 20 30 a. b. n/a d. C. n/a n/a $4,500 $4,900 $5,100 $5,300 2 of 4 BU224M3 Focus 2 of 4 BU224M3 Total Cost Variable Average Average Average Costs Variable Total Fixed Costs Costs Cost a. b. c. Cases of LED light bulbs produce d in an hour 40 50 60 70 80 90 d. $5,400 $5,700 $6,700 $7.900 $9,700 $11,800 e. Given the information you computed in Table 2, what is the minimum cost output level? Explain why. 4. Brenda Smith operates her own farm raising chickens and producing ago Sho calle

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