When a firm maximizes profit in the short run, it should consider:     all costs, including sunk costs, but not fixed costs.   only variable costs.   all costs, including sunk costs and fixed costs.   only fixed costs.

Q: If the price of the product that the firm is selling is equal to average total cost, a) the…

A: Average total cost is the per unit cost. The firm is said to be producing at the most efficient…

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: A profit-maximizing firm in the short run will expand output а. until total revenue equals total…

A: A profit-maximizing firm produces a level of output at which it is a le to get maximum Profit and…

Q: If a firm produce zero, its cost must be zero in the short run? C True C False

A: The total cost of production can be divided into two components namely fixed cost and variable cost…

Q: A firm's total cost (TC) equals the sum of its fixed cost plus its Group of answer choices marginal…

A: Sunk cost is the cost which is incurred already and this cost can not be recovered.

Q: Marginal cost is the:  rate of change in total fixed cost that results from producing one more unit…

A: Marginal cost by definition is the cost incurred for producing an extra unit of the good or…

Q: Boeing is a producer of aircraft. Determine whether each of the following are fixed costs or…

A: Total cost is the sum of fixed and variable costs. Total fixed costs are the total obligation of the…

Q: Relate the law of diminishing returns to a firm’s short-run production costs.

A: The short-run is the period where few factors of production are fixed and few are variable.…

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: If a firm is experiencing economies of scale, doubling inputs will: double output. more than double…

A: Economies of Scale: The economies of the scale refer to the gain that arises due to the increase in…

Q: Suppose a factory's marginal cost has a minimum value of $2; its average variable cost has a minimum…

A: In the short run, there are fixed costs and variable cost and in the long run there exists only…

Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost s10 16 2 20 3 22…

A: MC= TC2-TC1/Q2-Q1

Q: In the short run, when the output of a firm increases, its average fixed cost

A: To find : What will be average fixed cost.

Q: The marginal cost curve of a firm is MC = 6y + y2 .

A: Answer: Given that:     The marginal cost curve of a firm is MC = 6y + y^2 . Total variable costs to…

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: 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: When price exceeds average variable cost but not average total cost, the firm should, in the short…

A: For any firm, the shut down point is when the firm is not even able to meet its variable cost.…

Q: n the short run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average…

A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…

Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…

A: In case of perfect competition there are large number of buyers and sellers. The firms sell…

Q: Fixed costs of production in the short run: a. Are low in proportion to variable costs in the short…

A: The firm can increase production by changing its factor of production. However, the production scale…

Q: cost function of a single product firm is: C(Q)=1.9+4.5Q+8.2Q^2 If all firms have the same cost…

A: In long run perfectly competitive from operates at following point; P= MC = AC. C = 1.9+ 4.5Q+ 8.2Q²…

Q: The long-run ATC curve of a competitive firm derives its shape from: * decreasing, then increasing,…

A: Answer: Correct option: C (economies, then diseconomies, of scale) Explanation: Initially, the…

Q: ​A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and…

A: ​Question: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are…

Q: If a firm has negative accounting profits in the short run, it should a.Close since accounting…

A: Accounting profits are calculated by taking the difference between total revenue and total cost,…

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: Suppose a firm's marginal cost is increasing as it produces more output. Then the firms is said to…

A: The excess cost that is incurred by the producer to make an additional unit of output is known as…

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: A firm’s short-run marginal cost______________________________.   increases with output remain…

A: By definition, marginal cost refers to the additional amount of cost which the firm has to bear for…

Q: The short run is a time period such that O the existing firms in the market do not have sufficient…

A: The short run is a time period such that the firms which are prevailing in the market don't have…

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: In the short run, a perfectly competitive ball bearing manufacturer will continue to produce at a…

A: In perfect competition, there are large number of buyers and sellers and each firm sells identical…

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: Designated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable…

A: In short run, certain factors of production are fixed and certain factors of production are…

Q: If the price is less than the average total cost but higher than the average variable cost, then the…

A: In a competitive market, the firm maximize its profit when the market price of the firm is equal to…

Q: Increaseing marginal returns means that as the firm expands its output, its: OPTIONS long-run…

A: Increase in marginal returns: An increase in marginal returns refers to the variable input when an…

Q: What is the term for the rising portion of its marginal cost curve above its average variable cost…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise…

A: The minimum cost impact of output changes for a specific plant size is referred to as a short-run…

Q: When you calculate marginal costs, they should include: SELECT THE CORRECT ANSWER  A.the market…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has…

A: The following information is given: Output = 90 units, Average revenue = 46, Fixed cost = $270,…

Q: The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is…

A: Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

Q: In the short run, a firm will produce a positive amount of output as long as _____ Group of answer…

A: In short run, the firm will produce the goods as long as the price greater than the average variable…

Q: Suppose a firm's marginal cost is increasing as it produces more output. Then the firm is said to be…

A: The addition cost that is incurred by the producer to make an additional unit of output is called…

Q: Choose the statement that is true. Fixed costs in the long run can become variable in the short run.…

A: Out of the given statements, only the fourth statement is true. The reason for this is explained…