In the short term a firm will produce provided the revenue: A. Covers fixed costs B....
In the short term a firm will produce provided the
revenue:
A. Covers fixed costs
B. Covers variable costs
C. Covers total costs
D. Covers sales
Homework Answers
B. Covers variable costs
Explanation: The short-run shutdown condition is
that the revenue is lower than the variable costs. A firm can
survive in the short-run as long as its revenue is high enough to
cover its variable costs.
Add Answer to:
In the short term a firm will produce provided the
revenue:
A. Covers fixed costs
B....
Fixed costs are irrelevant in the decision about whether to shut down production in the short...
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs: do not affect, and are not affected by, the quantity the firm produces. can be paid off over time. only change when production changes only change in the short run |If a profit-maximizing perfectly competitive firm shuts down in the short run, it incurs no losses. it incurs an economic loss equal to total fixed cost. its profit equals zero....
A firm will shut down in the short run if the total revenue that it would...
A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its a. fixed costs. b. opportunity costs. c. total costs. d. variable costs.
A firm had total revenue of $1,500,000 last year. Total variable costs were $750,000, and fixed...
A firm had total revenue of $1,500,000 last year. Total variable costs were $750,000, and fixed costs were $250,000. The firm sells three different products, with a sales mix of 2:6:5. Assuming the firm's cost structure and sales mix stays the same this year, how much total revenue will the firm need if it wants to earn a profit of $600,000 this year? a. $1,700,000 b. $500,000 c. Cannot be determined from this information. d. $1,200,000
SHOW ALL WORK A profit-maximizing firm in the short run has total fixed costs of $200....
SHOW ALL WORK A profit-maximizing firm in the short run has total fixed costs of $200. Its variable costs are as below. Output Total Variable Cost 0 $0 1 $190 2 $360 3 $510 4 $650 5 $800 6 $990 7 $1,190 8 $1,420 9 $1,770 10 $2,170 (A) (3 pts.) Calculate average total cost when output is 5 units....
9. In the short run, a firm incurs fixed costs a) only if it incurs variable costs. b) only if it produces no output....
9. In the short run, a firm incurs fixed costs a) only if it incurs variable costs. b) only if it produces no output. c) only if it produces a positive quantity of output. d) whether it produces output or not.
If the short-run average variable costs of production for a firm are rising, then this indicates...
If the short-run average variable costs of production for a firm are rising, then this indicates that: A. Average total costs are at a maximum B. Average fixed costs are constant C. Marginal costs are above average variable costs D. Average variable costs are below average fixed costs
In the short run, the perfectly competitive firm will continue to produce even though it might...
In the short run, the perfectly competitive firm will continue to produce even though it might experience an economic loss if: a.total cost exceeds marginal cost. b.the market price exceeds the average variable cost. c.total revenue exceeds total costs. d.the market price exceeds the average fixed cost.
A perfectly competitive firm will be willing to produce even at a loss in the short...
A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as Multiple Choice the loss is smaller than its marginal costs the loss is smaller than its total variable costs. price exceeds marginal costs. O the loss is smaller than its total fixed costs.
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged...
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
5.For a firm that produces wooden tables, which of the following costs is a fixed cost in the short run? (x)the rent tha...
5.For a firm that produces wooden tables, which of the following costs is a fixed cost in the short run? (x)the rent that the firm pays for the space that is used to produce the wooden tables. (y)the cost of the wood that is used in the production of the wooden tables. (z)the monthly rent that the firm pays for equipment that is used to produce the wooden tables A.(x), (y) and (z)B. (x) and (y) only C.(x) and (z)...
Fixed costs are irrelevant in the decision about whether to shut down production in the short run because fixed costs: do not affect, and are not affected by, the quantity the firm produces. can be paid off over time. only change when production changes only change in the short run |If a profit-maximizing perfectly competitive firm shuts down in the short run, it incurs no losses. it incurs an economic loss equal to total fixed cost. its profit equals zero....
If the short-run average variable costs of production for a firm are rising, then this indicates that: A. Average total costs are at a maximum B. Average fixed costs are constant C. Marginal costs are above average variable costs D. Average variable costs are below average fixed costs
A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as Multiple Choice the loss is smaller than its marginal costs the loss is smaller than its total variable costs. price exceeds marginal costs. O the loss is smaller than its total fixed costs.
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
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