Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 12, Problem 8P
To determine
(a)
The price cover
To determine
(b)
Whether the firm will continue to operate in the short run if it is able to cover its AVC is to be determined.
To determine
(c)
The reason for Price being above
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Students have asked these similar questions
Give an example of a price at which this firm would want to produce and sell output in the short run, but not in the long run.
In the long-run equilibrium, what is the price?
what is the output?
what is the total profit?
Using the table (Check if the values are correct), answer the questions below:
a. What is the firms total fixed cost
b. Suppose the price of the product is 20
- What is the firms output level?
- What is its profit (or loss)-per-unit at that output level? $
- What is its total profit? $
c. Now suppose the price of the product is $10.
- What is the firm’s profit-maximizing output level?
- What is the firm's profit or loss per-unit? $
- What is the firm's total profit (or loss)? $
d. At a price of $10, will the firm produce?
e. If the price remains $10, what will happen to this firm in the long-run?
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