If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease production O b. increase production Oc keep the production level constant O d. keep the prices constant
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- If a firm will produce an additional unit of good or services, determine what will happen to their costs? a. The total cost will decrease O b. The total cost will be the same O . The total cost will be equal O d. The total cost will increase. A firm should continue to increase an activity so long as the total revenue from the activity exceeds the total cost of the activity. a. True O b. FalseWhen both factor and non-factor input change, the period of production is_ O a. Mid-run O b. Long run O. None of these O d. Short run When the quantity demanded for a commodity is 400 units but the quantity supplied is 150 units it is called. O a. Shortage of supply O b. Equilibrium of demand Oc. Equilibrium of supply O d. Surplus of supply
- If the firm is producing at an output level where marginal revenue exceeds marginal cost, then the firm should in order to maximize profit. * O increase price O increase output produced O produce less output O maintain production at the current levelHow much profit will the firm make as profit in the short run? What is the short break even point? What is the firms long run minimun cost? Why does the long run average cost curve decrease and then increase? Give some reasons that the real-world experenciences thisWhat is the law of diminishing returns? Why does marginal product eventuallydiminish?b. Explain the relationship between marginal product and average product. Lin’s makes fortune cookies. Anyone can make and sell fortune cookies, so thereare dozens of producers. All fortune cookies are the same and buyers and sellersknow this fact. In what type of market does Lin’s operate? What determines theprice of fortune cookies? What determines Lin’s marginal revenue?d. What is the shape of the AFC curve and why does it have this shape?
- 0 Labo capit total Labors ur al product $20 FC 5 15 1 10 1 1 1 20 1 Question 6 Mr-Ali Alawi recently set a shoe manufacturing outlet. He is planning for production demand, labor requirement, fixed cost, variable cost, the revenue. He come up with the following schedule. Help him to fill up the schedule. Initially he plans to use one machine. Total fixed cost per month is expected to be $1000. The unit cost of labor is estimated to be $20. 0 25 75 100 VC=# of 150 0 100 200 300 1000 total Cost(FC+VATotal cost/ C) 100 1000 120 1000 140 1000 160 Marginal cost(MC) 400 1000 180 ATotal Product Total Revenue ProfitGains from Trade - End of Chapter Problem Between 2016 and 2017, Nintendo produced 2.3 million NES Classic Edition mini consoles that sold out almost immediately as they arrived at stores. The retail price of the mini console was $59.99. However, if you were to check eBay at the time, you would see that people were buying the units for $250 each from scalpers. a. The price of $250 tells scalpers O they should continue to buy the console at the store and resell it on eBay for a higher price. they should keep the consoles they have already purchased and hang onto to them, as they will be considered antiques someday. they should no longer buy and resell the consoles because the price on eBay is too high to make a profit. b. Upon observing that the only way to obtain the gaming console is to buy it on eBay for $250, a consumer might do which of the following? Select all that apply. Consider buying another type of gaming console that is cheaper. Approach a family member about sharing the…A leftward shift of a product supply curve might be cause by O An improvement in the relevant technique of production O A decline in the prices of needed inputs O An increase in consumer income O Some firms leaving the industry
- What specific data must a firm examine to decide the quantity of product it should produce to make maximum profit? How will the firm know if it should produce at all? How will the firm know if it mak a an economic profit?Many businesses taco increasing marginal costs because___ O A. in order to increase output, you have to purchase more inputs.O B. a business may have to shift to more expensive sources of inputs in order to increase output.O C. most businesses are not near capacity.OD. when the price falls, output increases.The short run is a time period such that the existing firms in the market do not have sufficient time to change the amounts of any of the inputs that they employ. O the existing firms in the market do not have sufficient time to either increase or decrease their current rate of output. the existing firms in the market do not have sufficient time to increase the size of their existing plant or build a new factory. new firms may build plants and enter the industry.