For question 9 I need to know why is there a direct relation to price and revenue for inelastic goods For question 10 I need a explanation for C. Preferably 4 sentences Use the values for a perfectly competitive firmbelow to answer the questions:FixedCostVariableCost$8000 $16,000Price Quantity|Total Cost$10 2000$24,000(a) Should this firm shut down in the shortrun? Explain why or why not in 1-4 sentences.(b) Assume this firm's total costs do notchange in the long run. Should this firm exit inthe long run?(c) Are your answers to (a) and (b) different?Explain why in 1-4 sentences. Paula sells boomerangs. The price elasticity ofdemand for boomerangs is 0.54. If Paulawishes to increase her revenue, should sheraise or lower the price of boomerangs?Explain your answer in a few sentences.Price elasticity of demand for boomerangs =0.54Since the price elasticity of demand forboomerangs is 0.54, it is inelastic. positiverelation between price and total revenueexists when the demand is inelastic or lessthan 1, if demand is inelastic If Paula wantsto increase her revenue, she should raise theprice of boomerangs .

Use the values for a perfectly competitive firm below to answer the questions: Fixed Variable Cost Cost $8000 $16,000 Price Quantity|Total Cost $10 |2000 $24,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.

Use the values for a perfectly competitive firm below to answer the questions: Fixed Variable Cost Cost $8000 $16,000 Price Quantity|Total Cost $10 |2000 $24,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...

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