A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $70. In the short run, the break-even price is $ Suppose the firm charges a price of $30 per unit. In the long run, the break-even price is S Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Continue to Produce Shut Down Time Short Run

A firm sells 1,000 units per week. Suppose the average variable cost is $40, and the average cost is $70. In the short run, the break-even price is $ Suppose the firm charges a price of $30 per unit. In the long run, the break-even price is S Use the following table to indicate whether the firm will shut down or continue to produce in the short run and the long run. Continue to Produce Shut Down Time Short Run

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 1PA

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A firm sells 1,000 units per week. Suppose the average variable cost is $15, and the average cost is $55. 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 $5 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 Run ? ? Long Run ? ?
Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. f. In the long run, if price is below average total cost, then it pays to just shut down.
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Pretzel stands in New York City are a perfectly competitive industry in long-runequilibrium. One day, the city starts imposing a $100 per month tax on each stand.How does this policy affect the number of pretzels consumed in the short run and thelong run?a. down in the short run, no change in the long runb. up in the short run, no change in the long runc. no change in the short run, down in the long rund. no change in the short run, up in the long run