Please answer An increasing-cost industry is so named because of the positive slope of which curve?A. Each firm's short-run average cost curveB. Each firm's long-run average cost curveC. Each firm's long-run marginal cost curveD. The industry's long-run supply curveO E. Each firm's short-run marginal cost curve

Long run average total cost curve is a curve that shows a relationship between Average total cost…

n increasing-cost industry is so named because of the positive slope of which DA. Each firm's short-run average cost curve D B. Each firm's long-run average cost curve DC. Each firm's long-run marginal cost curve D D. The industry's long-run supply curve DE. Each firm's short-run marginal cost curve

n increasing-cost industry is so named because of the positive slope of which DA. Each firm's short-run average cost curve D B. Each firm's long-run average cost curve DC. Each firm's long-run marginal cost curve D D. The industry's long-run supply curve DE. Each firm's short-run marginal cost curve

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

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Explain the fact that the short-run supply curve for a price taking firm is that segment of its marginal cost (MC) curvethat lies above the average variable cost curve. Show and explain clearly shut-down and break-even points on your diagram.
A perfectly competitive firm faces the short-run cost schedule shown in Table (a)Calculate average total cost (ATC=TC/Q), marginal cost (MC=ATC/AQ) and marginal revenue (MR-ATR/AQ) for each level of output. The price per unit of output is £16 b) Plot ATC, MC and MR on a graph and mark the profit-maximising output. At what output is profit maximised? c) How much profit/loss is made at the optimum level of output? Assume market price declines to £9 per unit. If the firm's average variable cost is £9.5, should the firm shut down in the short run? In the long run? Explain. If the firm is typical of other firms, what price will it charge in the long run? Explain.
An increasing-cost industry is so named because of the positive slope of which curve? A) Each firm's short-run average cost curve B) Each firm's short-run marginal cost curve C) Each firm's long-run average cost curve D) Each firm's long-run marginal cost curve E) The industry's long-run supply curve
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Explain ''that segment of a competitive firm's marginal-cost curve that lies above it's average- variable -cost curve constitutes the short-run supply curve for the fiem '' illustrate graphically.
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Explain the fact that the short-run supply curve for a price taking firm is that segment of its marginal cost (MC) curvethat lies above the average variable cost (AVC) curve using a diagram. Show and explain clearly shut-down points and break-even points on your diagram. Explain your reasoning in detail.
A foodstuff firm has variable cost function: VC = 2q(q+1). The foodstuff market isconsidered as perfect competition market with many firms that are doing business.a. Find the short run supply curve of the firm?b. The firm is break even at total revenue of $702. Calculate the firm’s price and output atthis break-even point?c. What is the firm’s fixed cost?d. Calculate the price at which firm will shut-down its business?
Which of the FF. shows the connection between the short run and the long run equilibrium? A. positive economic profits in the short run attracts other firms to enter the industry B. negative economic profits in the short run forces the losing firms to exit from the industry C. the entry and exit will stop once the economic profits become zero, thus, attaining a long run equiilibrium D. all are correct E. none is correct
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