A firm will shut down in long-run if the a. Firm is making zero economic profits....
A firm will shut down in long-run if the
a. Firm is making zero economic profits.
b. Price is anywhere above the the minimum average variable cost (AVC)
c. Price is above the minimum average total cost (ATC)
d. Price is equal to the minimum average total cost (ATC)
e. Price is anywhere below the minimum average total cost (ATC)
Homework Answers
Profit = (P-ATC)*Q
The firm will make loss when price is below ATC, so firm will shut down if price is below ATC
option e is the correct answer ie. Price is anywhere below the minimum average total cost (ATC)
Add Answer to:
A firm will shut down in long-run if the
a. Firm is making zero economic profits....
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In the short run, a perfectly competitive firm is producing where MR-MC. At this output, P>AVC...
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The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum poin...
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First drop down options are as followes: Shut down, Earn zero profit, Operate at a lost,...
First drop down options are as
followes: Shut down, Earn zero profit, Operate at a lost, Earn a
positive profit.
Secound drop down: Enter, Exit, Neither enter nor exit.
Thrid drop down: Zero, Negative, Positive
Fourth drop down: 20, 30, 40
MC POINTS are as followed:
(10,10); (15,15); (20,30); (27,70); (30,90)
5. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is...
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total...
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47. Why must profits be zero in long-run competitive equilibrium a. If profits are not zero,...
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8. In the short run, a perfectly competitive firm will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is A. Greater than average total cost. B. Less than average total cost. C. Greater than average variable cost. D. Less than average variable cost E. None of the above 10. Given your answer to Question 8, what can you say about Hanna's firm: A. It should continue operating...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
In the short run, a perfectly competitive firm is producing where MR-MC. At this output, P>AVC and P>ATC. This firm A) is making positive economic profits B) is making zero economic profits C) is making negative economic profits but should continue to operate D) is making negative economic profits and should shut down.
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
12. In the long run: A. there will be no entry or exit of firms in this industry B. new firms enter the industry and curve A shifts to the right. C. firms exit this industry and curve A shifts to the left D. new firms enter this industry and curve F shifts to the right Questions 1- 14 refer to Figure 1 I. The industry's short-run supply curve is curve A. A H B. С.Е. D. F 2. The...
First drop down options are as
followes: Shut down, Earn zero profit, Operate at a lost, Earn a
positive profit.
Secound drop down: Enter, Exit, Neither enter nor exit.
Thrid drop down: Zero, Negative, Positive
Fourth drop down: 20, 30, 40
MC POINTS are as followed:
(10,10); (15,15); (20,30); (27,70); (30,90)
5. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is...
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