ZuoTi.Pro
Question

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 Ob. operate; shut down O c. shut down; operate Od. operate; operate

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
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
QUESTION 1 A firm is experiencing a loss of $5,000 per year when operating. The firm...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • A profit-maximizing firm incurs an economic loss of $30,000 per year. Its fixed cost is $25,000...

    A profit-maximizing firm incurs an economic loss of $30,000 per year. Its fixed cost is $25,000 a year. Should the firm produce or shut down in the short run. Suppose instead that the firm has a fixed cost of $35,000 per year. Should the firm produce or shut down in the short run?

  • A firm is seeing a $500 loss in the short run. The fixed cost of operation...

    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 frm in the short run? e This firm should shut down production immediately o This firm should produce more than what it is aurrently producing O This firm should not shut down production in the short run. eThere is not enough information provided to answer. 1 pts Question 16 A firm is...

  • Industry Firm SP MC ATC X -P=MR AVC 35.61. .. 10,000 10 16 18 Answer the following question based off of the graphs abo...

    Industry Firm SP MC ATC X -P=MR AVC 35.61. .. 10,000 10 16 18 Answer the following question based off of the graphs above, which depict a perfectly competitive industry and firm. Assume that fixed costs (FC) for the firm are $400: Does the firm continue to operate given the information presented in the graph? When would a firm shut down? The firm continues to operate in the short run; A firm would shut down in the short run if...

  • D 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...

    D 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? This firm should shut down production immediately. This firm should produce more than what it is currently producing. This firm should not shut down production in the short run. There is not enough information provided to answer.

  • QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm...

    QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 MC ATC AVC 245 210 175 129 (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? d) What type of market stuctur is epreete tby igure 1? Consider the graph below, which indicates the demand and cost structures of...

  • 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

  • Chapter 9 Homework Chapter 9 Homework Name 1. (1.5 points) For each of the following decisions...

    Chapter 9 Homework Chapter 9 Homework Name 1. (1.5 points) For each of the following decisions faced by a firm, write the rule/condition that the firm should follow to make a decision. a. What quantity of output will maximize a firm's profit? b. When should a firm shut down in the short run? c. When should a firm exit a market in the long run? 2. (1 point) A firm participating in a competitive market has costs shown in the...

  • Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore...

    Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore marginal costs of MC = 3/4Q. Assume the market for this firm’s goods is perfectly competitive with a market price, P = 24. (a) Given the information above, is the firm in the short-run or long-run? (1 point) (b) Write down the firm’s marginal revenue equation. (1 points) (c) How many units should the firm produce if it wants to maximize profit? (3 points)...

  • 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...

  • 16. A firm is seeing a $500 loss in the short run. The fixed cost of...

    16. A firm is seeing a $500 loss in the short run. The fixed cost of operation for this firm is $200. What is the best decision for this firm in the short run? This firm should shut down production immediately There is not enough information provided to answer. This firm should not shut down production in the short run. This firm should produce more than what it is currently producing.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT