A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable...
A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55. In the long run, the firm should a. Shut-down as the firm is making a loss of $15 million per week b. Shut-down as the firm cannot cover the variable costs c. Shut down because the price is lower tha average cost d. None of the above
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A firm sells 300,000 units per week. It charges $ 35 per unit,
the average variable...
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the...
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the average cost is $60. In the short run, the break-even price is ? . In the long run, the break-even price is ? Suppose the firm charges a price of $42 per unit. Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Time Continue to Produce Shut Down Short...
11. A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost o...
11. A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost of $20. The firm's profit is ________. a. $50 b. $100 c. $150 d. $30 15. A firm is seeing a $500 loss in the short run. The fixed cost of operation for this firm is $1,000. What is the best decision for this firm in the short run? a. This firm should...
If a profit maximizing firm has a fixed cost of $3000 and an average variable cost...
If a profit maximizing firm has a fixed cost of $3000 and an average variable cost of $40 per unit but a maximum output of 50 units. The firm cannot avoid the fixed costs in the short run but can avoid the fixed costs by shutting down in the long run. The firm should A) produce output at prices no less than $40 and supply 50 outputs at prices above $40 B) produce output at prices no less than $100...
Consider a monopolistically competitive firm which sells 300 units of output per month. At that output...
Consider a monopolistically competitive firm which sells 300 units of output per month. At that output level, MR = MC, average variable costs = $1 and total fixed costs = $900. The firm charges $8 for each unit of output. This firm is making a profit or loss equal to $__________________.
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit....
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should ? a) shut down b) raise the price to $45 per unit c. reduce output but not to zero d. increase output sold to 300 units e. continue to produce the present level of output
QUESTION 1 A firm is experiencing a loss of $5,000 per year when operating. The firm...
QUESTION 1
A firm is experiencing a loss of $5,000 per year when operating. The firm has fixed costs of $8,000 per year. The firm should the short run and should in in the long run
a. shut down; shut down b. operate; shut down c. shut down; operate d. operate; operate
The minimum point of the average variable cost curve (AVC) is referred to as the a....
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
A firm has weekly revenue of $1000. a) The firm's total cost is $1450 per week....
A firm has weekly revenue of $1000. a) The firm's total cost is $1450 per week. The firm will shut down if weekly fixed (sunk) cost is what? b) The firm's variable cost is $500 and its fixed cost is $800. The firm shuts down if the percentage of fixed costs that is avoidable is greater than 20%, 40%, 60%, or 80%?
Incorrect uestion 19 0/4 pts Jasu has determined that its profit-maximizing quantity is 10,000 donuts per...
Incorrect uestion 19 0/4 pts Jasu has determined that its profit-maximizing quantity is 10,000 donuts per year. Jasu earns $12,000 in revenue from the sale. He has two costs. First, he pays $16,000 in annual rental payments for its five-year lease on its store. Second Jasu incurs an additional cost of $5,000 for ingredients. Should Jasu shut down in the short run? No, because he can cover all of his variable costs No, because is earning positive economic profit. Yes,...
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000...
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $140 and increasing, and average variable cost is $120. Assuming it wants to maximize its profits, it should: u increase output. o decrease output, but not shut down. u maintain its current output rate. shut down.
QUESTION 1
A firm is experiencing a loss of $5,000 per year when operating. The firm has fixed costs of $8,000 per year. The firm should the short run and should in in the long run
a. shut down; shut down b. operate; shut down c. shut down; operate d. operate; operate
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
Incorrect uestion 19 0/4 pts Jasu has determined that its profit-maximizing quantity is 10,000 donuts per year. Jasu earns $12,000 in revenue from the sale. He has two costs. First, he pays $16,000 in annual rental payments for its five-year lease on its store. Second Jasu incurs an additional cost of $5,000 for ingredients. Should Jasu shut down in the short run? No, because he can cover all of his variable costs No, because is earning positive economic profit. Yes,...
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $140 and increasing, and average variable cost is $120. Assuming it wants to maximize its profits, it should: u increase output. o decrease output, but not shut down. u maintain its current output rate. shut down.
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