The correct answer to whether it should be produced is that the firm should produce in the short term if it can either make a profit or a loss less than its total costs. True or false

Q: Discuss how the production theory and price determinations help businesses achieve both their…

A: The Theory of Production is defined as an effort to explain the principles that are followed by…

Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…

A: Natural resources are the raw materials that are used by the business organizations in order to…

Q: Why will firms in most markets be located at or close to the bottom of the long-run average cost…

A: In the long run, all the costs are the variable costs. In long run, costs are lower than that of in…

Q: List three disadvantages of the "push" manufacturing approach to production.

A: Under push manufacturing model, business organization produces goods and services based on predicted…

Q: In the long run, fixed costs are

A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…

Q: Evaluate the view that having a business objective of increased economies of scale is always…

A: Economies of scale occur when the long-run average cost of the firm falls with an increase in the…

Q: “Even if a firm is losing money, it may be better to stay in business in the short run.” Is this…

A: Yes, in the short run, it may be better to run the firm even if it is losing money.

Q: A few sentences for the response please. How does the impact of fixed costs change production…

A: Fixed costs are amount of dollars expended on fixed factors of production such as land, building,…

Q: explain why a firm might want to produce its good even after diminishing marginal returns have set…

A: The firm may wish to continue operating and manufacturing products even after decreasing marginal…

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

Q: Which of the following is CORRECT? Select one: If a firm is technologically efficient, it is always…

A: Technological Efficiency: A firm is said to be technically efficient when it started producing…

Q: true or false The rational and profit maximizing firm will choose to operate in Stage 1 or Stage 2…

A: Total product is defined as the total amount of output produced by employing given amount of input.…

Q: Suppose that firms in the zipper industry have the production technology: F(K,L)=4K^(3/4) * L^(1/4)…

A: Answer: Given: Production function: FK,L=4K34×L14 Cost/price of labor = 27 Cost/price of capital =??…

Q: If a firm wanted to know how much it would save by producing one less unit of output, it would look…

A: TC (Total) is the cost which is incurred by a firm in producing some specific level of output. It is…

Q: MC ATC AVC AFC 40 70 80 90 Quantity Costs

A: Diminishing returns begin where MC curve starts rising or MP curve starts to fall. Most productive…

Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence…

A:

Q: Long-run equilibrium in perfectly competitive markets meets two important conditions: allocative…

A: Answer- Need to find- Long-run equilibrium in perfectly competitive markets meets two important…

Q: Jalal runs a restaurant in his area. Staff at his restaurant have been working for long hours, they…

A: As from the given statement it is shown that Staff at Jalal's restaurant have been working for long…

Q: Productive efficiency means output (production) is produced in the long run at

A: A perfectly competitive market is the type of market structure in which several buyers and sellers…

Q: A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu…

A: Costs are the expenses that a business or a firm incurs in its production activities. It is an…

Q: Why Law of Diminishing Returns is a short run law?

A: Law of Diminishing returns states that as more of the variable factor is combined with the fixed…

Q: What are the fixed and variable costs of (a) a pizza shop, (b) an Internet service provider, (c) a…

A: There are various costs associated with the process of production and the main two categories of…

Q: Where average costs of production are lowest when all output is produced by a single firm

A: Average cost curve: It is a cost bend which is commonly U-shaped. Average variable cost (AVC) is…

Q: At what output rate does the firm maximize profit or minimize loss?

A: After marginal revenue exceeds marginal cost,at that output rate firms maximize profit.

Q: Fill in the blank: In the long run, maximizing profits is different from minimizing costs as the…

A: In a market, there are some differences in dealing the market condition in the short-run and in the…

Q: Evaluate the view that having a business objective of increased economies of scale is always…

A: ii) Economies of scale refer to when there is an increase in the production of goods and services…

Q: In the short run, the firm should continue to produce if and only if a.Price exceeds average total…

A: Total fixed cost is independent of output produced whereas  variable cost varies with the level of…

Q: What stage of production is the increase in output that results from increase in a firm's outputs by…

A: When the increase in output that results from increase in a firm's output by some proportion it is…

Q: Which situation represents the long run?

A: In situation (i) both the input are variable and in situation (ii) input 1 is variable and input 2…

Q: Explain manufacturing firms should use demand leading instead of demand trailing capacity strategy.

A: A lead limit technique (lead request procedure) is a proactive methodology that adds or takes away…

Q: Discuss in detail the short and long run laws of production.

A: Short run law of production says that when more and more units of variable inputs are added to fixed…

Q: In the long run, in a competitive economy, companies use resources until the extra or marginal…

A: (Q) In the long run, in a competitive economy, companies use resources until the extra or marginal…

Q: Suppose that in 2018, you inherited from your grandfather a small planetarium that had been closed…

A: A small planetarium has been inherited by a person from his grandfather in the given problem. The…

Q: Which stage of short run production is efficient? Why?

A: In microeconomics, we have two time periods namely short run and long run. Short run is the time…

Q: Suppose a firm produces bicycles will the firms accounting statement reflect the opportunity cost of…

A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…

Q: this a good example of a sunk cost? Why or why not? “As an entrepreneur, advertising your product…

A: Yes, money spent on advertising and marketing is a sunk cost.  A sunk costs is a cost that you have…

Q: Companies can typically maximize their profits by operating at the minimum average total cost…

A: The answer to above is false.

Q: Give an example of a price at which this firm would want to produce and sell output in the short…

A:

Q: Which statement is true? a. Socio-cultural factors do not determine the goods that society is likely…

A: socio-cultural factors are the factors that effect the consumers choices and tastes and they effect…

Q: In the short run, if a firm chooses to operate and produce output, it must be the case that

A: The shutdown point of a firm comes when the price of the goods sold is less than the variable cost…

Q: Why is it reasonable to think of normal profit as a type of cost to the firm?

A: In the short run, firms usually try to temporarily shut down their operations when the prices are…

Q: Explain the idea behind diminishing marginal returns and give a real-life example.

A: Diminishing Marginal Returns happen while expanding one unit of creation, while holding different…