1a. In the long-run, if existing firms are earning economic losses, this implies: ATC is greater...
1a. In the long-run, if existing firms are earning economic losses, this implies:
-
ATC is greater than price.
-
AFC is greater than price.
-
AFC is equal to price.
-
ATC is less than price.
1b.
A firm has the following price and cost information
| Price | $10.00 |
| Output | 20 |
| Fixed Costs | $200.00 |
| Variable Costs | $1,200.00 |
Instructions: Enter all prices as 2 decimal places.
Question 1:
What is the average fixed cost? $
Question 2:
What is the average variable cost? $
Question 3:
What is the average total cost? $
Homework Answers
Ans) the correct option is a) ATC is greater than price.
Ans) 1) average fixed cost = 200/20 = $ 10
2) Average variable cost = 1200/20 = $ 60
3) average total cost = 10 + 60 = $ 70
Add Answer to:
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