You are a consultant on profit maximization. What do you recommend in each of the cases below for a perfectly competitive firm? In the "Answer" box, the following options can be used more than once or not at all: I.The firm is in the correct position. 2. The firm should increase price. 3. The firm should decrease price. 4.The firm should increase output 5. The firm should decrease output. 6.The firm should shutdown. Note: You do not need to fill in all the blanks to find the answer for each case but you must show your calculations (i.e., blanks filled per case) used to determine your answer. Case D E P. $1.00 $4.00 Q 1,000 10,000 2,000 TR $10,000 $5.000 $8,000 TC $9,000 $8,000 TFC $1,500 $1,000 TVC $7,000 АТС $1.80 $3.50 At minimum level $4.50 AVC $5.50 $3.00 MC $2.00 $5.00 $4.50 $4.00 Answer:
You are a consultant on profit maximization. What do you recommend in each of the cases below for a perfectly competitive firm? In the "Answer" box, the following options can be used more than once or not at all: I.The firm is in the correct position. 2. The firm should increase price. 3. The firm should decrease price. 4.The firm should increase output 5. The firm should decrease output. 6.The firm should shutdown. Note: You do not need to fill in all the blanks to find the answer for each case but you must show your calculations (i.e., blanks filled per case) used to determine your answer. Case D E P. $1.00 $4.00 Q 1,000 10,000 2,000 TR $10,000 $5.000 $8,000 TC $9,000 $8,000 TFC $1,500 $1,000 TVC $7,000 АТС $1.80 $3.50 At minimum level $4.50 AVC $5.50 $3.00 MC $2.00 $5.00 $4.50 $4.00 Answer:
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
Problem 13P
Related questions
Question
Transcribed Image Text:Perfect Competition
You are a consultant on profit maximization. What do you recommend in each of the cases below
for a perfectly competitive firm? In the "Answer" box, the following options can be used more than
once or not at all:
1.The firm is in the correct position.
2 The firm should increase price.
3. The firm should decrease price.
4. The firm should increase output
5.The firm should decrease output.
6. The firm should shutdown.
Note: You do not need to fill in all the blanks to find the answer for each case but you must show your
calculations (i.e, blanks filled per case) used to determine your answer.
Case
E
$1.00
$4.00
1,000
10,000
2,000
TR
$10,000
$5.000
$8,000
TC
$9,000
$8,000
TFC
$1,500
$1,000
TVC
$7,000
ATC
$1.80
$3.50
At minimum level
$4.50
AVC
$5.50
$3.00
MC
$2.00
$5.00
$4.50
$4.00
Answer:
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