The correct answer to whether it should be produced is that the firm should produce in the short term if it can either make a profit or a loss less than its total costs. True or false

Q: Should the firm shut down in the short-run?  Explain in detail why or why not.

A: The decision to shut down a firm in the short run depends on the comparison between the price and…

Q: n the short run a firm can minimize costs by shutting down. minimize costs by going out of business.…

A: The firm will continue to produce in the short run as long as it is able to recover the variable…

Q: In economics, profit         revenue         marginal…

A: The question is asking to identify the term used in economics to describe small incremental changes…

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: Choose any business.  If you worked for that business, what major factors would stimulate the demand…

A: The major factors that would affect the demand or stimulate the demand are as follows: Price plays…

Q: Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following…

A: Introduction: Total cost refers to the expense that is incur in the process of production. It is the…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: If a entrepreneur's accounting profit is positive but their economic profit is negative should they…

A: In a market, an entrepreneur enters and able to make accounting profit, it is the Sita when his…

Q: Firms in an industry have the following cost function: C(q)=3q3-6q2+4q. If the market is perfectly…

A: C = 3q3 - 6q2 + 4q Divide C w.r.t q to get AC => AC = (C / q) => AC = 3q2 - 6q + 4…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Total Fixed Costs + Total Variable Costs = W %3D Multiple Choice The Supply Curve. The Marginal…

A: Total fixed cost refers to the cost that is independent of the output level produced. Total variable…

Q: Why would a firm that incurs losses choose to produce rather than shut down? Why could this choice…

A: In short run firm exhibits return to factor where only one factor is variable and another factor is…

Q: X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5…

A: Total cost is minimized when (MPx / Px) = (MPy / Py) Here, MPx / Px = 30/5 = 6 MPy / Py = 20 / 4 = 5…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: In the short run, if a firm is having economic losses, but the profit is greater than the average…

A: The following problem has been solved as follows:

Q: MC ATC D f g MRh j Output Dollars

A: We have downward slope kinked demand and marginal revenue.

Q: Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.

A: Marginal Cost is the additional cost incurred in the production of additional unit of output.…

Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…

A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…

Q: If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000,…

A: Explicit cost is the actual monetary expenditure.  The annual labor and rental costs is $200,000…

Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…