Is this firm in a short-run or long-run horizon and how can you tell?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

ii) Is this firm in a short-run or long-run horizon and how can you tell?  Explain in a concise sentence or two

Q2.
Number of Cakes
0
1
2
3
4
VC
MC
AVC FC
0
N/A
N/A
50
30
30
30
50
50
20
25
50
75
25
25
50
105 30 26.25 50
TC
ATC
50 N/A
80
80
100
50
125 41.67
155
38.75
i) Consider the cake-maker above. Fill in the table and show equations used in the space below. (Hint:
You can start with any cell with an answer and fill in the others in any direction, like a sudoku. Use the
definitions for Average, Total, Variable, Marginal, and Fixed costs from the notes or text)
ii)Is this firm in a short-run or long-run horizon and how can you tell? Explain in a concise sentence or
two.
Transcribed Image Text:Q2. Number of Cakes 0 1 2 3 4 VC MC AVC FC 0 N/A N/A 50 30 30 30 50 50 20 25 50 75 25 25 50 105 30 26.25 50 TC ATC 50 N/A 80 80 100 50 125 41.67 155 38.75 i) Consider the cake-maker above. Fill in the table and show equations used in the space below. (Hint: You can start with any cell with an answer and fill in the others in any direction, like a sudoku. Use the definitions for Average, Total, Variable, Marginal, and Fixed costs from the notes or text) ii)Is this firm in a short-run or long-run horizon and how can you tell? Explain in a concise sentence or two.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Sales
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education