Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Question
Chapter 8, Problem 15SQ
To determine
Input price in a constant cost industry.
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Students have asked these similar questions
Marginal cost tells us
a. the amount fixed cost rises when output
rises by one unit
b. the marginal increment to profitability
when price is constant
c. the value of all resources used in a
production process
d. the amount total cost rises when output
rises by one unit
Your company sells Beyonce concert DVDS. Total fixed
costs for your operation are $10,000 a year. The variable costs
are: 50Q – Q
(Q is in hundreds)
The firm pays $500 a year in various taxes. The market price of
these DVDS is $40. Beyonce has many fans.
Show your work/thought process:
a. Should the firm shut down in the short run? Explain.
b. If the firm's fixed costs decreased from $10,000 to
$8,000, would the firm shut down in the short run?
Variable costs are
sunk costs.
costs that change every day.
costs that change with the level of production.
Chapter 8 Solutions
Microeconomics For Today (MindTap Course List)
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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Similar questions
- Which of the following would shift a firm's short-run cost curves downward? a.an increase in excise taxes levied on the firm's product b.an increase in the demand for the firm's product c.an advance in technology d.an increase in employees' wagesarrow_forwardSuppose a firm's marginal cost is increasing as it produces more output. Then the firm is said to be experiencing which of the following? a.increasing returns to scale b.diminishing returns to scale c.losses d.profitarrow_forwardNipam owns a firm that sells basketball apparel. As the firm's output increases, the firm's short-run marginal cost will eventually increase because of diseconomies of scale a lower product price inefficient production the firm's need to break even diminishing marginal productarrow_forward
- 3) The short run is a period of time in which A) nothing the firm does can be altered. B) the amount of output is fixed. C) prices and wages are fixed. D) the quantity of at least one factor of production is fixed.arrow_forwardFactors that cause the short-run supply curve to change are factors that affect fixed costs. demand. the market but not the individual firm. variable costs.arrow_forwardCosts in the short run versus in the long run help mearrow_forward
- Which statement is true? Fixed costs a.do NOT exist in the long run. b.depend on the firm's level of output. c.are zero if the firm is producing nothing. d.are the difference between total costs and average variable costs.arrow_forwardSuppose a firm's long-run average cost is increasing as the firm produces more output. Then the firm is said to be experiencing which of the following? a.constant returns to scale b.increasing returns to scale c.diminishing marginal product d.decreasing returns to scalearrow_forwardSuppose a firm's marginal cost is increasing as it produces more output. Then the firms is said to be experiencing which of the following? a.increasing returns to scale b.diminishing returns to scale c.losses d.profitarrow_forward
- A strawberry farm operating in a perfectly competitive market is operating below the break-even point. What is the best thing to do in the short run? Group of answer choices onsider shutting down or stopping production Borrow money and buy more capital equipment. Hire more workers. Increase the price of its strawberries.arrow_forwardDesignated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable cost d. average costarrow_forwardRefer to the above figure. The firm is currently producing at Q2. The firm shouldSelect one:A.shut down.B.increase production.C.leave production as it is.D.reduce production.arrow_forward
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