The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate

The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Market Representative Firm MC АТС $8 AVC A $6 MR = P %3D D1 20,000 100 125 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. When the market reaches its Long Run Equilibrium, we should expect the firm to produce and the equilibrium quantity in the market to be 125; less than 20,000 125; more than 20,000 100; less than 20,000 O 100; more than 20,000 Price
A foodstuff firm has variable cost function: VC = 2q(q+1). The foodstuff market is considered as perfect competition market with many firms that are doing business. a. Find the short run supply curve of the firm? b. The firm is break even at total revenue of $702. Calculate the firm's price and output at this break-even point? c. What is the firm's fixed cost? d. Calculate the price at which firm will shut-down its business?
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The intersection of the average variable cost curve and the marginal cost curve, which shows the price where the firm would lack enough revenue to cover its variable costs, is called the: Shutdown point Equilibrium Profit Loss
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QUES if you have the following graph MC MR $30 ATC AVC 20 15 75 80 100 Output