Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true.  f. In the long run, if price is below average total cost, then it pays to just shut down.

What is the shutdown condition? a.A condition stating when a firm should cease to operate and produce nothing, because profits are maximized when not producing b.In the short run, the shut down condition is TR < VC . In the long run, it is TR

Analyze Perfect Competitive Market - In terms of cost, price, and profit   write a paragraph in your own words plzz. No plagiarism. Provide unique solution

I. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.

''In the short run, the firm should shut down only if the price is less than average variable cost'' What are your thoughts on this statement?

Use the following graphs for questions 22 and 23. At what price would a firm exit the market? (a) Relationship of total cost to total variable cost and total fixed cost (b) Relationship of marginal cost to average total cost, average variable cost, and average fixed cost Total Costs (dollars) 700 Cost 150 Per 140 TC Unit 130 TVC (dollars) 120 MC 600 110 100 500 90 80 400 70 60 ATC 300 TFC 50 AVC 40 AFC 200 30 20 TFC 100 10 AFC 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Output Quantity of Output (units per hour) (units per hour) O $20 O $30 $45 $50

What is the shutdown decision of the firm? How should a firm decide whether to continue business or shut down in the short run?

10. The following is a total cost curve. Sketch the corresponding marginal cost curve. If the price of output is $3 and there are no fixed costs, what is the profit-maximizing level of output?

Draw a graph to explain as well Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.

In the above figure, if the price is $16 per unit, how many units will a profit maximizing perfectly competitive firm produce?