When total fixed costs increase, a - the profit - maximizing level of output falls. b the firm may be forced to shut down if total fixed costs get too high. c economic profit decreases. d all of the above occurs.

Q: Profits are maximized at the output at which marginal cost equals marginal revenue. If the market…

A: Average variable cost is minimum where MC=AVC

Q: An ice cream shop owner is deciding whether or not to keep her ice cream shop open during the…

A: Fixed costs are defined as the costs incurred at the time of setting up of the business such as…

Q: What is the relationship between the firm,total revenue,total profit and total cos

A: Costs are the expenses that the firms have to incur in their production activities. Revenue is the…

Q: 4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year.…

A: According to the shutdown rule a firm must continue operations when the price (average revenue)…

Q: Suppose a firm shuts down in the short run. Which of the following statements can you infer from the…

A: Shut down means the company closes all its operations because it cannot gain any benefit from it.

Q: A firm's short-run demand curve for a resource is also the firm's: average cost curve of the…

A: Marginal Revenue Product : In simple terms, the marginal revenue product of a resource is the…

Q: Complete table. B. Applying the rule of profit maximization, if the product market price of $35,…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: t a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost…

A: When the value of the final unit of output (marginal revenue) and the cost of its manufacture…

Q: OutputAFC AVC АТС MC 1 100 40 140 40 2 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38…

A: In a perfectly competitive market profit is maximized where marginal cost is equal to marginal…

Q: a. Draw a competitive firm's short run Total Product curve. b. Show the three sections on the Total…

A: The all out item (TP) bend addresses the aggregate sum of result that a firm can deliver with a…

Q: A profit-maximizing firm in the short run will expand output а. until total revenue equals total…

A: A profit-maximizing firm produces a level of output at which it is a le to get maximum Profit and…

Q: 4. Ball Bearings, Inc., faces costs of production as follow Quantity Total Fixed Cost Total Variable…

A: given that, total fixed cost and total variable cost we have to find firms profit or loss and was…

Q: 0 MC ACO MC # 9 91 (soybeans) 091 AVCO MC₂ A. produce at 9₁ B. continue to produce at 92 C. produce…

A: The cost is the expenditure of a firm when it utilizes its resources for producing goods and…

Q: a. Calculate P, TR, MR, TVC, TF, ATC,AFC, MC , showing the functions you used in your calculations.…

A: We will answer the first three parts only. Please resubmit the question with any other parts you…

Q: lease show make the work. I do not understand how the answer is C. However, someone said the answer…

A: Optimal price / quantity and profit for a firm: A firm always try to maximize its profits given the…

Q: When are you are you expecting companies to produce in the short run? A. costs equal equal revenue…

A: A firm tends to earn positive profits when its  earned revenues can cover its total costs.

Q: Refer to the above figure. The firm is currently producing at Q2. The firm should Select one: A.…

A: A firm is an organization that produces and sells goods and services to earn profits in the form of…

Q: Choose a company that produces a specific product Illustrate how the effect of diminishing marginal…

A: The concept of diminishing marginal returns in economics refers to a situation where the increase in…

Q: A firm has the following profit function Profits(q) = R(q) - C(q) = 60q - [120+40q+10q²] %3D %3! 1.…

A: Disclaimer :- As you posted Multipart questions we are supposed to solve the first 3 questions only.…

Q: The maximum loss of a firm should experience in the short run is equal to  a. Zero b. Total cost…

A: ​To understand why this is the case, let's break down the different cost components involved.

Q: Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans a whole house for…

A: Here, given information is: Laura'a per house revenue: $156 Laura'a per day total cost: $1680 Her…

Q: Assume Fixed cost of $50. •Assume the perfect competition price is $500. Quantity Total 0 1 2 3 4 5…

A: Cost refers to the sum paid to purchase any products or services. In a nutshell, the term "cost"…

Q: 21. Sandy owns a firm with annual revenues of $1,000,000. Wages, rent, and other costs are $900,000.…

A: a. Accounting profit can be calculated as follows: Accounting profit=1,000,000-900,000=100,000…

Q: Instructions: Use the tool provided "Pt. A to identify the profit-maximizing quantity and price.…

A: The primary goal of optimizing a firm's revenue and minimizing costs is termed 'profit…

Q: The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive…

A: Answer to the question is as follows :

Q: Mariel runs an ice cream shop. Her short-run cost is given by 300 + 3000 + 3g where q s the number…

A: TC(total cost) has 2 components- TFC(total fixed cost) and TVC(total variable cost). ATC(average…

Q: Ball Bearings, Inc. faces costs of production as follows:QuantityTotal Fixed CostsTotal Variable…

A: Let's break down each part step-by-step with detailed explanations and computations. Part (a) -…

Q: Refer to Figure 14-7. What line segment best reflects the short-run supply curve for this firm? a.…

A: Supply curve shows different levels of quantity supplied at different prices.

Q: MC Price ATC 9. AVC 2 10 15 Quantity

A: The short-run is the time period where at least one factor is fixed and others are variable. The…

Q: 2. Answer the questions below using the cost curves for the price-taking firm shown in the following…

A: "A price-taking firm represents a firm in a perfectly competitive industry. Firms in this industry…

Q: Q10. Label and complete the following daily cost schedule for Company A as directed by the question…

A: here we calculate the total cost and average variable cost and average total cost and marginal cost…

Q: 34. In the long run, a profit maximizing]firm will choose to exit a market when a. fixed costs…

A: If a market where there is freedom of entry and exit, the firm that suffer loss will exit from the…

Q: Suppose a car firm's marginal revenue of selling a car is $2,100 and marginal cost of producing a…

A: Given:  Marginal Revenue of selling a car = $2100 Marginal Cost of producing a car = $2150

Q: Refer to the short-run graph data below. The profit-maximizing output for this firm is: A. above 440…

A: Profit-maximizing output refers to the level of production at which a company achieves the highest…

Q: ​A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and…

A: ​Question: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are…

Q: Read the following news items and explain where a short-run decision and a long-run decision are…

A: a. January 31, 2020: Tim Horton will open 60 more stores in Asian countries   The news analysis is…

Q: A firm's accounting profit is called a normal profit when its a. average cost is minimum. b.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: If the price of the firm is less than average total cost. This situation is Select one: a.…

A: The firm would continue to produce as long as the price is above the average variable cost. The…

Q: Question 7 Perfect Competition & Shut down A firm has the following profit function Profits(q) =…

A: (a) Since you have given multiple sub-parts question, we will solve the first three sub-parts. If…

Q: Suppose a firm's marginal cost is increasing as it produces more output. Then the firms is said to…

A: The excess cost that is incurred by the producer to make an additional unit of output is known as…