![Microeconomics For Today (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305507111/9781305507111_largeCoverImage.gif)
Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 8SQ
To determine
The quantity of output produced by a firm at a price of $15 per unit.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
iv. Over time Yasir decides to expand his business. In the long run he first experiences economies of scale, followed by constant returns to scale and finally diseconomies of scale as the output increases. Draw a diagram of his ATC in the short run and the long run. Explain this diagram in detail.
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?
Suppose 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.profit
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
Knowledge Booster
Similar questions
- Why does the marginal product curve have an inverted “U” shape?2. Using diagrams, explain the relationship between the marginal product curve andmarginal cost curve? 3. What are the three stages of production? At which stage of production should a profit-maximising firm produce? 4. Fill in the appropriate numbers in the blank spaces, given the following information:output Total fixedcost (RM) Totalvariable cost(RM) Averagefixedcost(RM)Averagetotal cost(RM)Marginalcost(RM) 0 100 01 100 202 100 503 100 604 100 655 100 70 5. Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980arrow_forwardWhen a firm produces 55,000 units of output, its total cost equals $6.5 million. When it increases its production to 75,000 units of output, its total cost increases to $9.2 million. Within this range, the marginal cost of an additional unit of output is A. $41.43. B. $134.29. C. $135. D. $145.arrow_forward1)As a firm increases production, average total cost _____. a will stay the same b will decrease c will increase d may either increase or decrease 2) As a firm increases production, total cost _____. a will stay the same b will decrease c will increase d may either increase or decreasearrow_forward
- QUESTION 6 The basic difference between the short run and the long run is that B. the law of diminishing returns applies in the long C. at least one resource is fixed in the short run, while all resources are variable in the long run D. economies of scale may be present in the short run but not in A. all costs are fixed in the short run, but all costs are variable in the long run run but not in the short run the long runarrow_forwardA firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it increases production to 21 units, which of the following must occur? a. Marginal cost will decrease. b. Marginal cost will increase. C. Average total cost will decrease. d. Average total cost will increase.arrow_forwardMarginal 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 unitarrow_forward
- Economics IPCSB.52 A yoga studio has two big costs: rent and labor. They decide that they want to move to a location with lower rent and they adjust the hours of their employees. Is this a short-run or long-run decision? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Short-run. Long-run. One cannot tellarrow_forwarde) In the following diagram of cost curves, how many short runs have been created? State and explain which SRATC will be chosen if the firm wants to produce at Q1, Q2 and Q3. SRATC, SRATC, SRATC, Q2 Q3 Quantity of Output Average Total Cost (dollars)arrow_forward4. Your company sells Beyonce concert DVDs. Total fixed costs for your operation are $10,000 a year. The variable costs are: 50Q-Q² (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?arrow_forward
- 7. A 200-pound steer can be sustained on a diet calling for various of grass and grain. These combinations are shown in the table. proportions Pounds of Grass 50 56 60 68 80 88 Pounds of Grain 80 70 65 60 54 52 a. Plot the isoquant corresponding to the inputs necessary to sustain a 200-pound steer. Comment on its shape. b. The rancher's cost of grass is $.10 per pound; the cost of grain is $.07 per pound. He prefers a feed mix of 68 pounds of grass and 60 pounds of grain. Is this a least-cost mix? If not, what is? Explain. c. The rancher believes there are constant returns to scale in fattening cattle. At current feed prices, what input quantities should he choose if he wants to raise the steer's weight to 250 pounds?arrow_forwardPRINT LAST NAME, FIRST NAME NAME SECTION# PERFECT COMPETITION A firm earns zero economic profit when: price is equal to average variable cost. price is equal to average total cost. price exceeds average total cost by the greatest amount. marginal revenue is equal to marginal cost. 1. ns. a. b. al C. d. A perfectly competitive firm producing where P = MR = MC > ATC in the short run is: incurring a short-run loss, and would minimize its loss by shutting down. making an economic profit greater than zero. making an economic profit equal to zero. incurring a short-run loss, but minimizes its loss by producing at MR = MC. a. b. C. d. The profit-maximizing rule is for firms to produce the amount of output at which: 3. ATC = AVC. a. ъ. MR = MC. %3D P = ATC. MSAC→ AM %3D d. MR = P. 4. The shutdown price corresponds to the minimum point of the: AVC curve because Losses > TFC when P 0 when P> ATC. ATC curve because Losses > TFC when P< AVC. ATC curve because Profit <0 when P< ATC. a. b. C. d. 5.…arrow_forwardIn the long run, Select one: a. some resources are variable and some resources are fixed. b. all resources are fixed. C. at least one resource is fixed. Od. there are no explicit costs. e. all the resources can be varied.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 LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337794992/9781337794992_smallCoverImage.jpg)
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)