EBK PRINCIPLES OF MICROECONOMICS
7th Edition
ISBN: 9781305892811
Author: Mankiw
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 14, Problem 3PA
To determine
The decision regarding the shutdown of production.
Expert Solution & Answer
Trending nowThis is a popular solution!
Learn your wayIncludes step-by-step video
schedule02:23
Students have asked these similar questions
Question 3
Mehmood’s lawn-mowing service is a profit-maximizing, competitive firm. Mehmood mows lawns for Rs.270 each. His total cost each day is Rs.2800, of which Rs.300 is a fixed cost. He mows 10 lawns a day. What can you say about Mehmood’s short-run decision regarding shutdown and his long-run decision regarding exit?
Charlies's lawn-mowing service is a profit-maximizing.competitive firm. Bob mous
lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He
mows 10 lawns a day. What can you say about Charlies's short-run decision regarding
shutdown and his long-run decision regarding exit?
App10: Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows
lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He
mows 10 lawns a day. What can you say about Bob's short-run decision regarding
shutdown and his long-run decision regarding exit?
Chapter 14 Solutions
EBK PRINCIPLES OF MICROECONOMICS
Ch. 14.1 - Prob. 1QQCh. 14.2 - How does a competitive firm determine its...Ch. 14.3 - Prob. 3QQCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQCh. 14 - Prob. 6CQQCh. 14 - Prob. 1QR
Ch. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QRCh. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - A firm in a competitive market receives 500 in...Ch. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Prob. 11PACh. 14 - Prob. 12PA
Knowledge Booster
Similar questions
- Bob’s lawn-mowing service is a profit-maximizing,competitive firm. Bob mows lawns for $27 each. Histotal cost each day is $280, of which $30 is a fixedcost. He mows 10 lawns a day. What can you sayabout Bob’s short-run decision regarding shutdownand his long-run decision regarding exit?arrow_forwardIf Hasan runs the restaurant himself and before setting up this business, he was working in a company as a salesman for $15,000 per year. Hasan owns the building that his restaurant in housed in and could have rented it out for $10,000 per year. Those would be an implicit cost of opening his own restaurant. Calculate the economic profit?arrow_forwardDarlene runs a pizza parlor in a medium-sized community where there are many such parlors. Assuming she sells 185 slices per day, and her daily fixed costs are $ 101 and daily variable costs are $ 230. In the short run, an economist would likely advise Darlene to shut down if price she can charge for a slice is $ Select one: a. None of the answers offered are correct. b. above 1.24 , but below 1.79 c. below 1.79 d. below 1.24 e. below 0.55arrow_forward
- Nabil cleaning service is a profit-maximizing, competitive firm. Nabil cleanswashroom for $25 each. His total cost each day is $260, of which $30 is a fixed cost.He deep cleans 10 toilets a day.a. What can you say about Nabil’s short-run decision regarding shutdown andb. What is his long-run decision regarding exit?Explain each decision with diagram.arrow_forwardMatthew Rafferty produces hiking boots in the perfectly competitive hiking boot market. The table contains information on Rafferty's total costs. Fill in the missing values for AFC, AVC, ATC, and MC in the table. (Enter your responses rounded to two decimal places.) Output per Week 0 1 2 3 4 6 7 8 9 10 Total Cost $245.00 345.00 395.00 435.00 485.00 545.00 615.00 700.00 800.00 920.00 1065.00 AFC AVC ATC MCarrow_forwardMatthew Rafferty produces hiking boots in the perfectly competitive hiking boot market. The table contains information on Rafferty's total costs. Fill in the missing values for AFC, AVC, ATC, and MC in the table. (Enter your responses rounded to two decimal places.) Output per Week 0 1 2 3 4 5 6 7 8 9 10 Total Cost $400.00 500.00 580.00 640.00 705.00 775.00 850.00 960.00 1080.00 1215.00 1400.00 AFC $ AVC $ BE 172 ATC $ IND MC $arrow_forward
- Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving services. The following tables set out Lisa's costs Quantity(lawn per hour) Total Cost(dollars per lawn) 0 $30 1 $40 2 $55 3 $75 4 $100 5 $130 6 $165 A. If the market price is $30 per lawn, How many lawns per hour does Lisa's LLC now? B. If the market price is 30 per lawn, What is Lisa"s profit in the short run? C. if the market price falls to $20 per lawn, how many lawns per hour does Lisa's LLC now? D. if the market price falls to $20 per lawn, what is Lisa's profit in the short run? E. At What market price will Lisa shut down?arrow_forwardBob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob's short run decision regarding shut-down and his long-run decision regarding exit? Question 3 options: Bob should stay in business in the short run as well as in the long run Bob should quit his business immediately Bob should stay in business in the short run but quit in the long run None of the other answers are correctarrow_forwardBob's lawn mowing service is a profit maximizing, competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob's economic and accounting profits in the short run? Question 4 options: Economic profits are $20 and accounting profits are minus $10 Economic profits are $40 and accounting profits are $0 Economic profits are minus $10 and accounting profits are $20 Economic profits are $0 and accounting profits are $40arrow_forward
- The Warren Watch Company sells watches for $27, fixed costs are $100,000, and variable costs are $14 per watch. What is the firm's gain or loss at sales of 7,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $. What is the firm's gain or loss at sales of 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. $.arrow_forwardBob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $25 each. His total cost each day is $300, of which $60 is a fixed cost. He mows 15 lawns a day. In the short run, Bob should shut down or not shut down. In the long run, Bob should exit or not exit the industry.arrow_forwardCrabby Bob’s is a seafood restaurant in a beach resort in Delaware. Crabby Bob’s earns a profit each month from May through September, suffers losses in October, November, and April but remains open, and remains closed from December through March. Given that the restaurant market in this town is perfectly competitive, how would you explain Crabby Bob’s decisions?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning