Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 13, Problem 7QE
To determine
Check whether the figures are correct or not.
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What are the short-run and long-run costs of the production of Walmart?
100
90
80
70
60
ATC
50
40
30
20
AVC
МС О
10
+
0
0
5
10
15
20
30
35
40
45
50
QUANTITY (Thousands of shirts)
or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume
hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing
uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will
nake a profit, suffer a loss, or break even at each price.
Price
Quantity
(Dollars per shirt)
(Shirts)
Profit or Loss?
Produce or Shut Down?
Shut down
10
20,000
Loss
Shut down
20
10,000
Loss
Shut down
32
5,000
Loss
Either 0 or 37,500
Shut down
40
Loss
25
COSTS (Dollars)
Please show working and calculations.
Chapter 13 Solutions
Microeconomics
Ch. 13.1 - Prob. 1QCh. 13.1 - Prob. 2QCh. 13.1 - Prob. 3QCh. 13.1 - Prob. 4QCh. 13.1 - Prob. 5QCh. 13.1 - Prob. 6QCh. 13.1 - Prob. 7QCh. 13.1 - Prob. 8QCh. 13.1 - Prob. 9QCh. 13.1 - Prob. 10Q
Ch. 13 - Prob. 1QECh. 13 - Prob. 2QECh. 13 - Prob. 3QECh. 13 - Prob. 4QECh. 13 - Prob. 5QECh. 13 - Prob. 6QECh. 13 - Prob. 7QECh. 13 - Prob. 8QECh. 13 - Prob. 9QECh. 13 - Prob. 10QECh. 13 - Prob. 11QECh. 13 - Prob. 12QECh. 13 - Prob. 13QECh. 13 - Prob. 14QECh. 13 - Prob. 15QECh. 13 - Prob. 16QECh. 13 - Prob. 17QECh. 13 - Prob. 18QECh. 13 - Prob. 19QECh. 13 - Prob. 20QECh. 13 - Prob. 1QAPCh. 13 - Prob. 2QAPCh. 13 - Prob. 3QAPCh. 13 - Prob. 4QAPCh. 13 - Prob. 5QAPCh. 13 - Prob. 1IPCh. 13 - Prob. 2IPCh. 13 - Prob. 3IPCh. 13 - Prob. 4IPCh. 13 - Prob. 5IP
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