When do firms decide to shut down production in the short run? Explain it.

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

Q: 36) In the short run, if marginal product is A) above; decreasing B) below; decreasing C) above;…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Define the concept of short run and Long run ( ..). Then, use an example each to illustrate the…

A: In the short run production, it is assumed that at least one of the input is fixed and the remaining…

Q: Course: Microeconomic - Long and short run costs The company "Mr. Tomas" manufactures tricycles…

A: Tricycle is a function of function of two set of inputs :  Steering wheel , seat & frame : (v)…

Q: When do firms decide to shut down production in the short run? Explain it. How is the short-run…

A: Since you have posted multiple questions, we will solve the first answer for you. If you want any…

Q: Multiple choice - microeconomics 45) Refer to Figure 13-2. What does the changing slope of the…

A: When the economic decisions and behavior are studied at the household and firm-level, then such a…

Q: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for…

A: Explicit costs and revenues are those financial transactions that are directly related to a decision…

Q: What are the kinds of cost which firm face in short run. Explain theoretically and graphically the…

A: Short run refers to the time period where some of the factors of production remain same throughout…

Q: Which of the following represents the key difference between the short run and the long run? O The…

A: Costs are the expenses incurred by a firm in the production of its output. In production, there are…

Q: Question 2 Output Marginal Product Variable Cost Fixed Cost Labor $0 $5 100 100 $5 $5 250 $10 $5 3…

A: We have given a table  Labor Output Marginal Product Variable cost  Fixed cost 0 0   0 5 1…

Q: 1. At what production level would the marginal cost exceed the average cost?  2. How many barrels of…

A: The increase in revenue that results from the sale of one additional unit of output is known as…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: 1. What area represents the firm's profit? 2.At which output level are economies of scale…

A: STEP1 The profit-maximizing level of output/quantity produced is Q4. In case of monopoly, the…

Q: The difference between total cost and total fixed cost

A:

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: In the long run, the AC curve will be upward sloping when it exhibits to decreasing returns, it will…

Q: Complete the following table by calculating marginal product and average product.       Plot the…

A: INPUTS OF LABOR TOTAL PRODUCT MARGINAL PRODUCT AVERAGE PRODUCT 0 0 0 - 1 15…

Q: How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the…

A: Cost refers to the financial valuation of products and services purchased by manufacturers and…

Q: 27) What do we know about fixed costs?  A. They are incurred only when production is at capacity…

A: The firms operating in a market incur two types of costs, fixed costs, and variable costs. Variable…

Q: BONUS: Explain precisely why in the short run the Marginal Cost curve intersects the Average Cost…

A: Minimal cost (MC) is the additional expense brought about when an additional one unit of output is…

Q: Long-run average c Number of units produced Figure 8.9 Which segment in the diagram represents the…

A:

Q: M/c question - Micro 21)For a firm, what does the production function represent? A. the…

A: 21) option c is the correct answer option-c       quantity of inputs and quantity of output…

Q: Which factors are important for short-run and long-run? Provide graphical analysis for each period…

A: The supply curve of an industry indicates the various quantities of the product being offered for…

Q: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are…

A: Demand is the absolute quantity of commodities for which the consumers are ready to purchase at…

Q: Scale 1 represents the short-run production for a repre- sentative firm. Explain what is currently…

A: Average cost is alluded to as the aggregate of all creation costs partitioned by the complete amount…

Q: 1. Factors that increase productivity and explain each

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Question 11 Refer to the Long Run Average Total Cost curve below to answer the following questions:…

A: Hi. since there are multiple questions we will answer only the first three questions.

Q: .1. With the aid of appropriate graphs, explain the relationship between the Law of Diminishing…

A: Law of Diminishing returns is Law of production theory which is applicable in short run. Production…

Q: 4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of…

A: Return to Scale: The return to scale refers to the behavior of output when all the inputs or factors…

Q: 21) In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is…

A: Total variable cost refers to the total cost incurred by the producer in production activity and it…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Average cost is the cost of producing one unit of an output. Average cost is calculated as the ratio…

Q: Show the relationship between short-run marginal and average cost curves, and long-run marginal and…

A: In the short run there are two types of costs:- fixed costs and variable costs. In the short run…

Q: State the decision rules used for finding the optimal amount of input(s) in both short-run and…

A: Hi, thanks for the question. As per the guidelines, we are allowed to answer only the first three…

Q: 1. Evaluate the view that the main goal of firms will always be cost minimization.

A: Note: Only first question is answered since the exact one wasn’t specified, if you want answers for…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: Handcrafting work are critical as far as monetary turn of events. They provide plenty of job…

Q: The unlabeled red curves in this figure derive their shapes from:   a. decreasing, then increasing,…

A: The long run average cost is an envelope around all the short run average cost curves. So, the long…