For questions 4-6: A firm has weekly revenue of $1000. The firm's total cost is $1450...
For questions 4-6: A firm has weekly revenue of $1000. The firm's total cost is $1450 per week. The firm will shut down if weekly fixed (sunk) cost is 2 40 500 HD] 70 2 “ ។ ៩ ៥ ៩៥ ៩ ៩ ន ដ ន ម ១ The firm's variable cost is $900 and its fixed cost, which is all sunk, is $500. FTRUE The firm will shut down. ALSE 2 The firm's variable cost is $500 and its faed...
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%?
Should a firm shut down if its weekly revenue is ?$1,000 its variable cost is ?$600 and its fixed cost is ?$1,500 of which ?$250 is avoidable if it shuts? down? ? Why? The firm should A. produceproduce because revenue of ?$1,000 is greatergreater than avoidable costs. B. produceproduce because revenue of $1,000 is greatergreater than variable costs. C. shut downshut down because revenue of ?$1,000 is less than fixed costs. D.produce because revenue is positive. E.shut downshut down because...
Afirm's monthly revenue is $15,000, its variable cost is $10,000, and its fixed cost $5,000, of which $2,000 is avoidable if it shuts down. The firm should shut down because its revenue is less than its avoidable cost. O not shut down because its revenue is greater than its avoidable cost. not shut down because its revenue is greater than its unavoidable cost. O shut down because its revenue is less than its unavoidable cost.
Afirm's monthly revenue is $20,000, its variable cost is $15,000, and its fixed cost $8,000, of which $6,000 is avoidable if it shuts down. The firm should shut down because its revenue is less than its unavoidable cost. not shut down because its revenue is greater than its unavoidable cost. O shut down because its revenue is less than its avoidable cost. o not shut down because its revenue is greater than its avoidable cost.
Initially, the market price is p=20, and the competitive firm's average variable cost is 18, while its average cost is 21. Should it shut down? Why? This firm should O A. not shut down because average cost is greater than average variable cost. OB. shut down because average fixed cost is less than the market price. O C. not shut down because average variable cost is less than the market price. OD. not shut down because average fixed cost is...
2. (20 pts) The figure below summarizes the demand and cost for a perfectly competitive firm. Based on it, answer questions a-h. SMC 10 SAC ANSC 8 AVC a (1,000) 0 2 3 45 6 7 89 0 12 13 a. (2 pts) What is the firm's optimal level of output in the short run? b. (2 pts) What price should this firm charge in the short run? c. (2 pts) What is the firm total revenue at this level...
5. Profit maximization and shutting down in the short run Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent...
5. Profit maximization and shutting down in the short
runSuppose that the market for black sweaters is a competitive
market. The following graph shows the daily cost curves of a firm
operating in this market.For each price in the following table, calculate the firm's
optimal quantity of units to produce, and determine the profit or
loss if it produces at that quantity, using the data from the
previous graph to identify its total variable cost. Assume that if
the firm...
5. Protit maximization and shutting down in the short run Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm...