Explain why the
Explanation of Solution
The
Hence, if a firm wants to continue its operations in the market, then the price have to cover the AVC of the firm.
Average variable cost: The average variable cost is the total variable cost divided by the quantity produced in a given time period.
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Chapter 8 Solutions
Microeconomics: Principles for a Changing World
- Help me write these economic analysis for Macys one paragraph) Company name/current state of operation of this company - Describe the company's performance in the present economy, whether it is growing or declining, and who are its competitors?arrow_forwardnot use ai pleasearrow_forwardThe following graph plots daily cost curves for a firm operating in the competitive market for sweatbands. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. Profit or Loss0246810121416182050454035302520151050PRICE (Dollars per sweatband)QUANTITY (Thousands of sweatbands per day)MCATCAVC8, 30 In the short run, given a market price equal to $15 per sweatband, the firm should produce a daily quantity of sweatbands. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run of thousand per day for the firm.arrow_forward
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