COST PER UNITLRACShut downSRATCIn the long run, if the firm decides to keep output at its initial level, what will it likely do?Shift to operate on SRATC₁Stay on SRATC3Shift to operate on SRATC20 to Q3SRATCQUANTITY OF OUTPUTOQ₂ to Q4O Q4O Q3O Q2SRATCAt which output level (or range of output levels) is this firm operating at the ideal plant size? Assuming that it cannot change it's current cost curve. The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five markedquantities indicate points of tangency between each short-run average total cost curve (SRATC) and the long-run average cost curve (LRAC); forexample, Q1 marks the point of tangency between SRATC₁ and LRAC.The orange point on SRATC3 indicates the firm's current output level in the short run (3).COST PER UNITSRATC₁LRACSRATCO Shut downSRATC3QUANTITY OF OUTPUTO Shift to operate on SRATC₁O Stay on SRATC3O Shift to operate on SRATC₂SRATC5In the long run, if the firm decides to keep output at its initial level, what will it likely do?SRATC

The following graph shows five short-run average total cost curve and a long-run average total cost…

COST PER UNIT LRAC SRATC SRATC QUANTITY OF OUTPUT O Shut down O Shift to operate on SRATC₁ O Stay on SRATC3 O Shift to operate on SRATC2 O 0 to Q3 O Q₂ to 24 O Q4 O Q3 O Q2 In the long run, if the firm decides to keep output at its initial level, what will it likely do? SRATC At which output level (or range of output levels) is this firm operating at the ideal plant size? Assuming that it cannot change it's current cost curve.

COST PER UNIT LRAC SRATC SRATC QUANTITY OF OUTPUT O Shut down O Shift to operate on SRATC₁ O Stay on SRATC3 O Shift to operate on SRATC2 O 0 to Q3 O Q₂ to 24 O Q4 O Q3 O Q2 In the long run, if the firm decides to keep output at its initial level, what will it likely do? SRATC At which output level (or range of output levels) is this firm operating at the ideal plant size? Assuming that it cannot change it's current cost curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Marginal cost is average variable cost when O a. equal to; average variable cost is minimized. O b. greater than; average fixed cost is minimized O c. equal to; average total cost is minimized O d. less than; total cost is maximized If Mark produces five pairs of earrings, his total costs are Number of TVC MC AVC TFC TC Earnings 100 1 50 2 3 46.67 4 300 5 270 O a. $320. O b. $370. O c. $400. O d. $360.
Suppose a perfectly competitive firm's produces 80 units at a minimum average variable cost of $2.5. If the price is $3 and the firm's marginal cost is $3, the firm should? Select one: O a continue to produce 80 O b. continue to operate, but produce more than 80 O c. shut down O d. continue to produce, but produce less than 80
5,000 Total Cost 10,000 O a.) The profit is maximized. Profit Total Revenue b.) The firm should increase output 15,000 Based on this graph, which of the following statements is true at an output of 7,000 indicated by the green line? Output Oc.) The slopes of the total revenue and total cost curves are equal. O d.) The cost is rising faster than the revenue.
Show all working
Show working
S 90 70 40 30 50 MC 100 ATC AVC Figure shows a firm's marginal cost, average total cost, and average variable cost curves. When Q = 50, the total cost will be: O A. $2,800. O B. $4,500. O C. $6.300. O D. $2,100.
Is a type of cost which does vary with the unit of production and will change with the number of unit sold. O A. Variable cost O B. Fixed cost O C. Sunk cost O D. Opportunity cost
Please please a answer both I will rate
If a firm quadruples(4x) in size and output triples (3x), what is the returns to scale? O A Increasing returns to scale O B O с O D Constant returns to scale Decreasing returns to scale Cannot determine
Mark all the correct results for perfect competition 8 correct 5 incorrect O in long run P is at the break even point O in the long run there is Productive efficiency OP- MR O MR = MC O in lông run P = ATC O P- MC OP> MC O there is not Productive efficiency O there is Allocative efficiency O P> MR O long run profits = 0 O in the long run positive economic profits is possible O there is not Allocative efficiency
In the theory of the firm, profit is maximized at a rate of production at which O Economic profit is zero O Price is highest O Marginal revenue equals marginal cost O Marginal cost is at its lowest point
A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its O a. Average variable cost O b. Marginal revenue Oc. Average fixed cost O d. Average total cost