In the short run, under what conditions should the firm shut down? a. average total cost...

In the short run, under what conditions should the firm shut down?

a. average total cost at the minimum point

b. price greater than average variable cost

c. price less than average variable cost

d. marginal revenue greater than marginal cost

Solutions

Expert Solution

Rahul Sunny answered 3 weeks ago

Next > < Previous

Related Solutions

In the short run, under what conditions should the firm shut down? average total cost at...

In the short run, under what conditions should the firm shut down? average total cost at the minimum point price greater than average variable cost price less than average variable cost marginal revenue greater than marginal cost marginal revenue greater than average total cost

18. A firm should shut down in the short run if:

18. A firm should shut down in the short run if: a. price is greater than average variable costs b. average fixed costs are greater than marginal revenue c. price is less than average variable costs d. total costs are greater than fixed costs 19. A firm is said to be making profits when: a. marginal revenue exceeds marginal costs. b. marginal revenue exceeds variable costs. c. average revenue exceeds average total...

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

A profit-maximizing firm in monopolistic competition should shut down in the short run if: a. price...

A profit-maximizing firm in monopolistic competition should shut down in the short run if: a. price is more than average total cost. b. price is less than average variable cost. c. marginal revenue is equal to marginal cost. d. marginal revenue is less than price. e. price is less than average fixed cost. The term “strategy” in terms of game theory refers to: a. the tendency for collusive firms to generate normal profits. b. each firm’s decision to charge a...

A profit-maximizing firm should shut down in the short run if: Answer choices: price is greater...

A profit-maximizing firm should shut down in the short run if: Answer choices: price is greater than marginal cost. total revenue is less than total variable cost. the firm is earning less than a normal rate of return. the firm is not able to cover its overhead expenses. marginal cost is higher than average cost.

A monopolist will shut down in the short run if: a. total revenue is less than...

A monopolist will shut down in the short run if: a. total revenue is less than total variable cost. b. price is less than marginal revenue. c. marginal revenue is less than price. d. total revenue is less than total fixed cost. e. marginal revenue is less than marginal cost. A movement from an abnormally high rate of unemployment toward a more typical level of unemployment would: a. move an economy from a point on the production possibilities curve to...

In the short run, a perfectly competitive firm will shut down and produce nothing if: a....

In the short run, a perfectly competitive firm will shut down and produce nothing if: a. economic profits equal zero. b. total cost exceeds total revenue. c. total variable cost exceeds total revenue. d. the market price falls below the minimum average total cost.

At a price of $10, and assuming the price doesn't increase in the future, should the firm continue to produce in the short-run or shut down in the short-run?

Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average Variable Costs 0 0 - 10 - 10 - - - 1 8 24 14 24 2 16 34 10 17 3 24 42 8 14 4 32 49 7 12.25 5 40 57 8 11.4 6 48 67 10 11.17 7 56 81 14 11.57 8 64 99 18 12.38 9 72 123 24 13.67 At a price of $10, and assuming the...

How does a firm decide whether to shut down production in the short run and in...

How does a firm decide whether to shut down production in the short run and in the long run? Explain both scenarios Can a competitive firm earn positive profits in the long run? Explain.

Explain why a perfectly competitive firm will shut down in the short run if price is...

Explain why a perfectly competitive firm will shut down in the short run if price is lower than average variable cost but will continue to produce if price is below average total cost but above average variable cost. In long-run competitive equilibrium, P = MC = SRATC = LRATC. Because P = MR, we can write the preceding condition as P = MR = MC = SRATC = LRATC. The condition thus consists of four parts: (a) P = MR,...

Subjects