MICROECONOMICS-MINDTAP (1 TERM)
MICROECONOMICS-MINDTAP (1 TERM)
13th Edition
ISBN: 9780357686942
Author: Arnold
Publisher: CENGAGE L
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Chapter 9.2, Problem 2ST
To determine

Explain whether the firm continues its production or shuts down the production.

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Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
The cost of producing watches is given by C = 300 + 3Q2, where Q is the level of output and C is total cost.   If the price of watches is P54, how many watches should Jessy produce to maximize profit? Does the firm profit? Should it shut down in the short run? Explain
Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.
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