ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 3.6P
To determine
The loss when firm decides to shut down in the short run.
Introduction: Not required.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
11-
Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing?
a.
Long run
b.
All of these
c.
Short - run
d.
Mid-run
Question 21.21. Which would be an implicit cost for a firm?Ā The costĀ
Ā Ā Ā Ā Ā Ā of worker wages and salaries for the firm.
Ā Ā Ā Ā Ā Ā Ā paid for leasing a building for the firm.
Ā Ā Ā Ā Ā Ā Ā paid for production supplies for the firm.
Ā Ā Ā Ā Ā Ā Ā of wages foregone by the owner of the firm.
28 -
: Total variable cost of firm X is 100 and total fixed cost is 20 TL.Ā The firm produces 40 units of goods.Ā What is the firm's average cost in this case?
Ā
Ā a)
3
Ā B)
one
Ā NS)
2nd
Ā D)
4
Ā TO)
5
Knowledge Booster
Similar questions
- Question 17: The sequence of processes required to produce and distribute a product is know as Ā A Supply chain B Conglomeration C Integration D Process Managementarrow_forward28 - The most important factor affecting a firm's production decision is the state of the supply curve. Which of the following is not a contributing factor?A) Weather conditionsB) investment surplusC) Economic GrowthD) WarE) Cost shocksarrow_forward2. Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 14,000 pounds of raw chicken that costs $7,450, the company produces two parts: 2,500 pounds of drumsticks and 4,500 pounds of breast for a processing cost of $2,466. The chicken breast is further processed into 3,700 pounds of steak for a processing cost of $1,700. The market price of drumsticks per pound is $1.40 and the market price per pound of chicken steak is $3.70. If Benson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20. a-3.Ā If the drumsticks are producing a loss, should that product line be eliminated? The drumstick product line Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā be eliminated. b-1.Ā Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base. Ā Ā Total costā¦arrow_forward
- Only typed answerĀ 15. Suppose q = f(L,K) =2L1/2 + 2K1/2 and the prices or labor and capital are w=$1, r=$1. What is the marginal cost in the long-run of the firm? Ā a. MC(q)= 2q2 /3 b. MC(q)= q / 4 c. MC(q)= q8 / 2 d. MC(q)= 4q3 / 3 e. MC(q)= 8q3 / 3arrow_forward(6) If marginal product is greater than average product (a) total product must be increasing.Ā Ā Ā Ā Ā (b) marginal product must be decreasing. (c) marginal product must be increasing.Ā Ā (d) average product may be increasing or decreasing.arrow_forwardQuestion When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Graphical representation of the short-run total cost curve showing total cost, fixed cost, variable cost: andĀ The marginal cost and average total cost:arrow_forward
- 12 true or false The point at which the marginal product of a variable input is at a maximum corresponds to the point at which marginal cost is at a maximumarrow_forwardquestion7) Ā the following is the total cost function and demand function of a certain firm TC= 100 +20Q + 7QQd = 130-2Pa)- What is the type of this market? why? b)Calculate the profit maximizing level of output and price for this firm. c) Does the firm make profit or loss at this level of output? Why? d)Should the firm produce this level of output or shut down? Why? please all do subparts because I have very urgent solutionarrow_forwardMicroeconomics - Production FunctionA firm produces shoes using labor (L) and machinery (K) as factors of production. Its production function isĀ Ā Ā Ā Ā Q = K1/3 * L2/3. Answer:(a) is the marginal product of labor (MPL) decreasing?b) is the average product of labor (APL) decreasing?c) what is the relationship between the average product (AP) and marginal product (MP) curves?d) what type of returns to scale does Q exhibit?arrow_forward
- Question: 1. What is the effect of the decline of Ford Australiaās productivity on its cost efficiency, production, and profit? Discuss. PLEASE ANSWERarrow_forwardQuestion 17 The production period in which at least one input is fixed in quantity is the production run. long run. short run. planning horizon.arrow_forwardH6. Your mother owns and runs an arts and craft store, and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average, she spends $206,000 per year traveling, purchasing, and shipping unique merchandise for resale at her store. Based on this information, do you think you should encourage her to return to teaching? Explain your advice with the help of calculations on her opportunity costs, accounting profit, and economic profit.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning