A firm is selling 2,000 units per year for $30 each; it can sell sell it wants at that price but cannot change the price. Annual total fixed costs are $45,000. marginal cost is $30 per unit; average variable cost is $12 per unit. The firm will _______ in the short run and ______in the long run.  a. produce; produce  b. shut down; produce  c. produce; leave the industry  d. shut down;; leave the industry

Q: Q1(Table: Cost Schedules) The table shows the TR and TC schedules for a competitive firm. Using your…

A: The amount of input that will be used to generate each product must be determined by the firm.…

Q: When fixed costs are ignored because they are irrelevant to a business's production decision, they…

A: The first part of the question is asking about the type of costs that are ignored because they are…

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: There is a different short-run ATC curve for each level of * variable cost. variable inputs. fixed…

A: The ordinary shape for a short-run normal expense curve is U-molded with diminishing normal expenses…

Q: Match the corresponding word/s to complete the statement above.  If the marginal cost equals…

A: A cost curve refers to a graph of the costs of production as a function of the total quantity…

Q: The above cost curves are for a firm producing flour, which is measured in pounds.  1. What is the…

A: A cost curve is a graph that shows the costs of production as a function of the overall quantity…

Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…

A: Answer in step 2

Q: Suppose that at 500 units of output, marginal revenue is $9, marginal cost is $6, and average total…

A: In economics, understanding the relationship between marginal revenue (MR), marginal cost (MC), and…

Q: a. Are the following statements true or false? Explain your reasons. For a firm with price in excess…

A: a.1.According to economic theory, businesses should raise production only when marginal cost is…

Q: A firm hasaverage variable Costs of RO 60 per unit, average fixed costs of RO 40 per unit and can…

A: The profit of the profit maximizing firm is maximized at a point where marginal revenue is equal to…

Q: D Question 9 Long-run costs are a reflection of price controls O capacity price ceilings scale

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

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: Refer to the figure above. Fixed cost for this firm is: A. $66 B. $64 C. $50 D. $14   The…

A: To determine the fixed cost for this firm, we need to understand that fixed costs are expenses that…

Q: Total Total Average Variable Average Output Fixed Variable Total Total Marginal (Q) Cost Cost Cost…

A: Q TFC TVC TC AVC ATC MC 150 500 400 900 2.67     200 500 800 1300   6.5

Q: 3. A firm has two plants that produce identical output. The cost functions are C1₁ = 20q-8q² + 2q³…

A: A cost function is a mathematical function that describes the relationship between the cost of…

Q: In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut…

A: A market is compe­titive when many selle­rs and buyers hop in to swap their products or service­s.…

Q: An economist estimated that the cost function of a single product firm is given by C (Q) = 100…

A: In economics, a cost function refers to a mathematical equation that represents the total cost of…

Q: $ 90 70 40 30 $50. $30. $60. 50 O $40. MC 100 Figure 8.3 shows a firm's marginal cost, average total…

A: Cost curves are the curves that represents various kinds of costs. The total cost curve represents…

Q: In the short run, assume total fixed costs are $10 and total variable costs are $10 when quantity is…

A: In economics, production refers to 'what is being created'.  It is just a production process or the…

Q: Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No…

A: Total cost is the sum of total fixed costs and total variable costs.  Average total costs is total…

Q: 72. In the video, what is the level of output that will maximize the firm's profit? Select one: a.…

A: In a perfectly competitive market, there is a large number of firms selling homogenous products at a…

Q: 2. Let a firm's short run total cost curve be given by c(y) = 10+10y-y²+0.25y³; therefore: MC = 10 –…

A: Short run supply curve"it is the portion of its supply curve that lies above its average variable…

Q: O Fixed cost. Variable cost. Total cost. is falling when marginal cost is below it and rising when…

A: Cost curves are crucial tools for understanding and analyzing the cost framework for a firm's output…

Q: Fill in with the correct answer. Your firm has a price of $5, an average total cost of $7, and an…

A: A firm's decision to shut down or operate depends on the following two factors: Price Cost

Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…

A: total cost, in economics, the sum of all costs incurred by a firm in producing a certain level of…

Q: a. Are the following statements true or false? Explain your reasons. For a firm with price in excess…

A: Sure, let's delve into a detailed explanation of the statements and the completion of the table.###…

Q: Refer to Figure 3 in Question 29. The quantity of output at which the MC and ATC curves cross is the…

A: In industrial association, the minimum efficient scale (MES) or efficient scale of creation is the…

Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…

A: Average total cost is the total production cost divided by the total quantity produced.

Q: What should a firm consider when maximizing profit in the short run .All costs, including sunk costs…

A: The profit maximization occurs when MR =MC. If MR> MC, the it is profitable to increase the level…

Q: Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 2 $40.00…

A: Total cost is comprised of total variable cost and total fixed cost.

Q: A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 =…

A: Short run is the time period having at least one factor of production fixed.

Q: Refer to Table Cost.EX2. When production is 4 units, the firm's average total cost is about

A: Average Total Cost = (Total fixed cost + Total Variable Cost) / Output

Q: Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No…

A: total cost is the total cost which is incurred by producer in producing goods and services , it…