Homework Help is Here – Start Your Trial Now!
Business
Economics
Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC= $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run.

Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC= $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run.

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 5SQP
See similar textbooks
icon
Related questions
Question
Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC = $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run. The firm should continue to produce its current level of output in the short run, but should exit the industry in the long run. The firm should continue to produce its current level of output in the short and long run.
Transcribed Image Text:Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC = $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run. The firm should continue to produce its current level of output in the short run, but should exit the industry in the long run. The firm should continue to produce its current level of output in the short and long run.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Shut-down point
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS