Question
In: Economics
19) The ________, the ________ necessary for short-run market adjustment. A) lower the fixed costs; greater...
19) The ________, the ________ necessary for short-run market adjustment.
A) lower the fixed costs; greater the price change
B) higher the marginal revenue; larger the marginal cost
C) higher the fixed costs; greater the price change
D) lower the average variable costs; smaller the marginal cost
E) none of the above
Solutions
Expert Solution
Answer -
Option (A) - Lower the fixed costs, greater the price change is correct.
Explanation -
Short run is a time period in which some factor inputs are fixed innitially and some factor inputs are variable like labour, raw material in the production process according to the requirement of production.It is usually the practice in short run to decrease or lower fixed costs.Short run is a period in which prices may quickly shift to restore market equilibrium.so price change is more to attain market equilibrium in short run.
Rahul Sunny answered 2 years agoRelated Solutions
3. Short-run costs are generally lower than long-run costs.
True/False Questions.
3. Short-run costs are generally lower than long-run costs.
4. If a firm has zero fixed costs, then the firm’s total cost is equal to its variable costs.
5. Since the marginal cost curve “pulls” the average variable cost curve, the marginal cost curve will lie above the average variable cost curve only when average variable costs are decreasing.
Is ? or ? fixed in the short-run?
Is ? or ? fixed in the short-run?
Why can the distinction between fixed costs and variable costs be made in the short run?...
Why can the distinction between fixed costs and variable costs
be made in the short run?
List ten costs you have running a restaurant and classify the
following as fixed or variable costs:
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $150.
A perfectly competitive
firm has the following fixed and variable costs in the short run.
The market price for the firm’s product is $150.Complete the table.OutputFCVCTCMCTRMRProfit/Loss0$100$01100100210018031003004100440 5100600 6100780 At what output rate does the firm maximize profit or
minimize loss?What is the firm’s marginal revenue at each positive
level of output? Its average revenue?What can you say about the relationship between marginal
revenue and marginal cost for output rates below the profit
–maximizing (or loss minimizing) rate? For output rates above the
profit...
What is the impact of money growth on economy (short run, adjustment period and long run)?
What is the impact of money growth on economy (short run,
adjustment period and long run)?
Question 19 In a perfectly competitive market, a firm may have losses in the short run....
Question 19 In a perfectly competitive market, a firm may have
losses in the short run. Suppose the firm’s total costs are $1,000
and fixed costs are $200 when outputs are 100. The
market-determined price of the good is $9 per unit. Which of the
following statement is true?
a. The price is less than the average variable cost
b. The firm should shut down business
c. The firm should continue doing business
d. The price is less than average...
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of D
$2,250 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q):
Q (Output)
TVC (Total Variable Cost
0
0.00
1
2,500
2
4,000
3
5,000
4
6,200
5
7,600
6
9,360
7
11,500
8
13,860
9
16,450
10
19,200
11
22,310
3a. How much output should the firm
produce if it can sell...
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of
$6,500.00 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q)
Q
TVC
0
0.00
1
8,000.00
2
15,000.00
3
20,000.00
4
23,000.00
5
25,000.00
6
29,000.00
7
33,500.00
8
39,000.00
9
46,000.00
10
53,500.00
11
61,200.00
12
72,000.00
_______3. (2.5 pts.) How much output should the firm produce if
it can sell all...
A firm shuts down in the short run when its revenue is less than fixed costs...
A firm shuts down in the short run when its revenue is less than
fixed costs because fixed costs always have to be paid. True or
False? Explain your reasoning.
Evaluate the following statement: In the short run, information about a perfectly competitive firm’s fixed costs...
Evaluate the following statement: In the short run, information
about a perfectly competitive firm’s fixed costs is needed to
determine both the profit-maximizing level of output and the amount
of profit earned when producing that level of output. Provide an
example of companies that illustrate the discussion. I specifically
need the example
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 6. Information warfare, denial of service, and system tampering are classified under ____________ threat category. 7....
- A firm has the production function Q = 4LK. The marginal products are given by MPL...
- B&B has a new baby powder ready to market. If the firm goes directly to the...
- QUESTION 1 Discuss in detail the evolutionary stages of counseling.Explain this theories. (20 Marks) Existential therapy,Behaviour...
- Write a script in C that will do the following : 1. Create the directory ZHW3....
- For this activity, address the following: State your Research Topic, Objective/Purpose, and Research Question(s). Who would...
- Do Internet research to calculate capital intensity ratio for General Motors company in 2017. Then do...
ADVERTISEMENT