For question 9 I need to know why is there a direct relation to price and revenue for inelastic goods For question 10 I need a explanation for C. Preferably 4 sentences Use the values for a perfectly competitive firmbelow to answer the questions:FixedCostVariableCost$8000 $16,000Price Quantity|Total Cost$10 2000$24,000(a) Should this firm shut down in the shortrun? Explain why or why not in 1-4 sentences.(b) Assume this firm's total costs do notchange in the long run. Should this firm exit inthe long run?(c) Are your answers to (a) and (b) different?Explain why in 1-4 sentences. Paula sells boomerangs. The price elasticity ofdemand for boomerangs is 0.54. If Paulawishes to increase her revenue, should sheraise or lower the price of boomerangs?Explain your answer in a few sentences.Price elasticity of demand for boomerangs =0.54Since the price elasticity of demand forboomerangs is 0.54, it is inelastic. positiverelation between price and total revenueexists when the demand is inelastic or lessthan 1, if demand is inelastic If Paula wantsto increase her revenue, she should raise theprice of boomerangs .

The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Use the values for a perfectly competitive firm below to answer the questions: Fixed Variable Cost Cost $8000 $16,000 Price Quantity|Total Cost $10 |2000 $24,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.

Use the values for a perfectly competitive firm below to answer the questions: Fixed Variable Cost Cost $8000 $16,000 Price Quantity|Total Cost $10 |2000 $24,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For question 9 I need to know why is there a direct relation to price and revenue for inelastic goods

For question 10 I need a explanation for C. Preferably 4 sentences

Use the values for a perfectly competitive firm
below to answer the questions:
Fixed
Cost
Variable
Cost
$8000 $16,000
Price Quantity|Total Cost
$10 2000
$24,000
(a) Should this firm shut down in the short
run? Explain why or why not in 1-4 sentences.
(b) Assume this firm's total costs do not
change in the long run. Should this firm exit in
the long run?
(c) Are your answers to (a) and (b) different?
Explain why in 1-4 sentences.

Paula sells boomerangs. The price elasticity of
demand for boomerangs is 0.54. If Paula
wishes to increase her revenue, should she
raise or lower the price of boomerangs?
Explain your answer in a few sentences.
Price elasticity of demand for boomerangs =
0.54
Since the price elasticity of demand for
boomerangs is 0.54, it is inelastic. positive
relation between price and total revenue
exists when the demand is inelastic or less
than 1, if demand is inelastic If Paula wants
to increase her revenue, she should raise the
price of boomerangs .

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