In the short run, a perfectly competitive ball bearing manufacturer will continue to produce at a loss if it is covering all of its fixed costit is covering all of its variable cost plus part of its fixed costvariable cost is less than fixed costfixed cost is zero

Q: The Warren Watch Company sells watches for $27, fixed costs are $100,000, and variable costs are $14…

A: A variable cost is a corporate expense that changes in proportion to how much a company produces or…

Q: act as a price-taker in the market, the market price of the firm's product is 20. The firm's cost…

A:

Q: For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixer cost is 100…

A: Sunk cost refers to the cost that cannot be covered. Total cost is the sum of Fixed and variable…

Q: Explain how the following events may affect the profit rate for a U.S. firm and industry (be sure to…

A: a.The oil is an important and essential commodity which is required for the growth of the economy.…

Q: Which of the following statement(s) describe sunk cost? 1) All of the answers are correct 2) It…

A: To produce a good, two types of cost are incurred, variable cost and fixed or sunk cost.

Q: If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000…

A: A firm faces different shut down constraint in different time periods such that in short-run or in…

Q: In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE², with a, b…

A: Long-run harvest function: H(E) = aE - bE2, with a, b representing positive constants and E is…

Q: Which of the following costs are important to consider when making short run decisions for a firm *…

A: We know that in the short run, there are both fixed and variable costs. Since some factors or input…

Q: An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A firm is selling 2,000 units per year for $30 each; it can sell sell it wants at that price but…

A:

Q: Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of…

A: MC= $150+ 0.005Q  For the supply curve, MC=Price So, P=150+ 0.005Q  Q=200P-30,000 This is the short…

Q: A firm in a competitive industry has the following cost function: c(y) = y3/3-20y2 +310y. (Note that…

A: A cost function is a function of input costs and output amount whose value is the cost of making…

Q: In the short run, a à firm's.fixed cost à. Is zero. Cannot be escaped. c. Çan be escaped only by…

A: The cost of production is the costs incurred in the process of production of the firm. There are…

Q: Firms experience a break even point when a. Total revenue is greater than total cost b. Marginal…

A: In break-even, total revenue is equal to total cost (= variable cost + fixed cost), so the firm…

Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 2 3 20 22 4…

A: Upto price of $45,firm would produce at a non negative profit.

Q: A firm’s LAC curve is U-shaped and has its minimum point at an output of 25000 units per week. In…

A:

Q: Explain in your own words why in the short run a firm may continue to produce even at a loss…

A: A firm in the short will continue to produce until price covers it variable cost. Otherwise the firm…

Q: A firm earns economic profit when total profit exceeds

A: To find : When firm book profit

Q: Answer the next question on the basis of the following cost data: Output Total cost 1 40 2 54 87 4…

A: Table attached below show the calculations for total revenue which is computed for each output by…

Q: Define and explain the following terms associated with long run production Accounting profit…

A: The short-run is the time period where at least one factor of production is fixed and others are…

Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1.

A: Perfect competition is the market structure where there are large no of buyers and sellers selling…

Q: Complete table b. Calculate the total fixed cost for the firm  c. Is the firm operating in the…

A: The solution is given below

Q: Assume a competitive firm faces a market price of $120, and a cost curve of: C = 0.004q° + 25q +…

A: The markets are the place where the buyers, and sellers of products meet and interact. The markets…

Q: If a firm makes zero economic​ profit, then the firm A. has total revenues greater than its…

A: The difference between the total revenue received by the firm from its sales and the total…

Q: Your company sells Beyonce concert DVDS. Total fixed costs for your operation are $10,000 a year.…

A: Shut down When a corporation chooses to shut down, it means that production will be put on hold for…

Q: The president of an ailing savings and loan is paid not to stay in his job for the last two years of…

A: Marginal revenue product mainly expresses the extra earnings an individual can acquire by adding one…

Q: The following table provides information about long-run average cost curve of a firm: Quantity LRAC…

A: A firm is said to experience economies of scale when its average cost of producing each unit of…

Q: Suppose the firm faces a price of $34, an average variable cost of $35, and has an average fixed…

A: When the revenue received from the sale of the goods or services produced is insufficient to pay the…

Q: guaranteë thất there isa well-defined solution to the long-run profit maximization problem? the…

A: Answer in step 2.

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: With the following data: Quantity=2,000 Variable costs= $2,000 Fixed costs= $10,000 Price= $1…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: a perfect competitive firms has the following total cost function: total output : 0 1 2 3 4 5 6 7…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: When a firm is operating at its minimum efficient scale, its: a. marginal revenue is less than the…

A: Minimum efficient scale is defined as the level of output at which all economies of scale are…

Q: In the long run a the firm's fixed costs are greater than its fixed costs in the short run. b all of…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What of the following is considered "sunk cost" in the short run? Variable cost. (VC, or TVC)…

A: Definition: Sunk Costs: In economics and firm decision-making, a sunk cost is a cost that has…

Q: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…

A: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…

Q: Boss Hogg is CEO of a corporation in a perfectly competitive industry (with identical firms), with…

A: The following problem has been solved as follows:

Q: A firm has the long-run cost function CQ) = 4Q + 64.In the long run, it will supply a positive…

A: The long-run cost curve is a cost function that models this minimum cost over time, meaning inputs…

Q: Claude’s Copper Clappers sells clappers for $65 each in a perfectly competitive market.

A: As per answering guidelines, should answer only first question.

Q: f a firm has negative accounting profits in the short run, it should   Question 10 options:   All…

A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…

Q: Assume the following total cost schedule for a perfectly competitive firm Output TVC (S) TFC (S) 100…

A: ATC is determined by partitioning total cost by the absolute amount delivered. The ATC bend is…

Q: A competitive firm has the short-run total cost function c(y) = 8y2 + 512. At what quantity of…

A: Average cost is the per unit cost of production. It is minimized when rate of change in average cost…

Q: An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What is the term for the lowest level of output at which a firm's goods are produced at minimum…

A: please find the answer below.

Q: A firm's efficiency decision O always means hiring labor that will work for the lowest possible…

A: Efficiency refers to the equilibrium condition where social demand equals social cost.

Q: . A perfectly competitive firm realizes a total revenue of $2500 and a profit of $500. The firm sold…

A: Average total cost is the cost per unit of output ATC = TC / Q