the short run a firm should shut down when; A. When price is below MC B. When price is below minimum point of AVC C. When it is not earning a positive economic profit D. It is incurring a loss
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In the short run a firm should shut down when;
| A. |
When price is below MC |
|
| B. |
When price is below minimum point of |
|
| C. |
When it is not earning a positive economic profit |
|
| D. |
It is incurring a loss |
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- Price 8 7 6 5 3 I I I II 1 O Choose one: 10 11 12 13 MC 11/05/18 ATC AVC Quantity The graph shows the cost curves of a firm in a competitive industry. The market price is $4. In the short run, the firm should A produce the output at which MRMC and earn a profit. B. produce the output at which MR MC and suffer a loss. C. shut down the operation D. There is not enough information to answer the question.Price Average total cost AVC Demand Marginal cost Marginal revenue Q Quantity Discuss the firm plotted on the figure. What type of firm do you see?is the firm operating at the optimal point of production? is the firm making a proht? s the firm operating in the short or in the long run?Use the graph above for question one assuming it represents the cost of a perfectly competitive firm where the market price is eight dollars A. calculate the profit maximizing point a production B. calculate the total revenue C. calculate the total cost D. calculate the total profit and E. will this firm shut down or continue in the short run explain how you know
- Required information The following figure shows the costs for a perfectly competitive producer. AVC, ATC, MC $45 40 35 30 25 201 15 10 5 0 C 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?K Poinsettia growing is perfectly competitive and all growers have the same costs. The market price is $21 a pot and each grower maximizes profit by producing 2,100 pots a week. Average total cost is $17 a pot and average variable cost is $15 a pot. Minimum average variable cost is $7 a pot. What is the price at the grower's shutdown point? The price at the grower's shutdown point is $a pot.Which of the following will cause the purely competitive firm to stop operations? A. the price can no longer cover the variable cost B. the price can cover the variable cost and half of the fixed cost C. the price can cover both the variable and the fixed costs but there is no economic profit D. the firm is realizing economic profit E. no correct answer
- Calculate the amount of profit or loss made by this firm at the equilibrium output. State the type of profit.If the price that a firm with no market power receives is $10, its minimum AVC is $8 and its minimum ATC is $15 then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a. the firm will make a loss and shut down immediately b. the firm can make a profit c. it will make a loss and choose to continue to produce in the short run d. the firm enjoys increasing returns to scale. e. None of the above.Fill out the rest of the table what would the highest profit be in this perfectly competitive firm and what would the maximizing output be? is there a breakeven price and if so, what is it?
- i. Calculate the marginal cost, marginal revenue and profit for each unit of production. ii. How many units should the firm produce to maximise profit?Currently the firm is producing at a profit maximizing quantity of output and has a total revenue of $5000. Variable costs are $4000 and Fixed costs are $2000. Which of the following is true for this firm in the short run: A. The firm should continue producing at a loss B. The firm should shut down immediately C. The firm should continue to produce since it is making profit D. The firm should adjust (increase or decrease) outputA profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?