If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its total variable cost. C) incurs an economic loss equal to its total fixed cost. D) makes a normal profit. E) might make an economic profit, zero economic profit, or incur an ec loss.
Q: 13. You are the manager of a supermarket, and you know that the income elasticity of peanut butter…
A: Income elasticity of demand means percentage change in quantity demanded divided by percentage…
Q: The graphs below show the production possibilities frontiers for sugar and corn in South Africa and…
A: (a) The production possibility curve depicts the combination of two goods that a nation can produce…
Q: A firm finds the following relationship between workers’ productivity and the amount that workers…
A:
Q: Explain what a production function is, and state the production function for a cocoa producer. b.…
A: Answer a. The relationship between the quantity of productive inputs (such as labour and capital)…
Q: Which of the following is not considered a characteristic of money? Question 3 options: It is a…
A: Money is used as a medium of exchange, store of value, unit of account and standard of deferred…
Q: Given the total cost function TC - 2,000 + 2*Q. when output is 1,000 units average total costs are.…
A: The formulas for cost are: 1. Total Cost = Fixed Cost + Variable Cost 2. Average Total Cost = Total…
Q: For a profit-maximizing price-taker firm, a reduction in the price of a good will cause to and the…
A: Firms in perfectly competitive market are price takers. They do not have any control over the market…
Q: explain your understanding of monopolies' impact on consumer welfare and how policies towards…
A: Monopoly refers to the type of market or industry in which the whole market is controlled by a…
Q: Problem #2 Suppose the Demand schedule of Rice was been revised during February 2021. Graph the…
A: We have given Point Price (Peso) Quantity demanded (kg) ( January 2021) A 123.5 11 B 114.5…
Q: ystems has excess reserves of $50, the max mount of new deposits that can be created orough lending…
A: Given, Reserve ratio 10% Excess reserve $50 billion
Q: Which of the following functions are not performed by households? 1. Suppliers of Labour 2.…
A: In the economics theory of circular flow of Income, the households and businesses/firms are two key…
Q: The reason(s) why real GDP grows, in the long run, is that Select one or more: O imports increase. O…
A: Gross domestic product refers to the economic tool to measure the national income of the people.
Q: rock paper scissors гock 0. -3 1 1 раper scissors -1 -1 0. (a) Show that xT= ( ) and yT= ( )…
A: Payoffs of the game are as follows - Rock Paper Scissors Rock (0 , 0 ) (-3 ,3 ) (1 , -1…
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A:
Q: The graph below shows the Lorenz curves of two different countries stylistically called ‘red’ and…
A: The Gini index, often known as the Gini coefficient, measures income distribution throughout a…
Q: Is the statement Price is equal to average total cost true for a monopolistically competitive firm…
A: There are large number of firms in both perfect competition and monopolistic competition.
Q: 20. A monopsony is a market condition in which there is only one buyer that dominates it. True or…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: I need help with econ multiple hw questions asap! 77) Refer to the attached Figure 20. To maximize…
A: (77). To maximize profit, monopolist will choose that level of output where marginal revenue is…
Q: A (0.20) B (0.50) 5 C (0.30)
A: The decision tree is used to make the strategic decisions. The probabilities are assigned to…
Q: Outline the extent of international business and the world economic outlook for trade.
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Variable cost Quantity (number of cups) (taka) Rahim operates a small tea stall in his neighborhood…
A: (a) Total cost is sum of variable cost and fixed cost. => Total cost = variable cost + fixed…
Q: 93) As the number of firms change in an oligopoly market, what will it become? A. As the number of…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: natural monopoly Question 19 options: exists because of legal barriers to entry. is not…
A: In monopolistic market, a single firm produces unique good with no close substitutes.
Q: If demand is price inelastic: O a. A decrease in price reduces sales O b. An increase in price must…
A: Elasticity measures the responsiveness of change in quantity demanded to changes in price level.
Q: Q3. Consider the following stage game
A: Given, Two Players : Player 1 and Player 2Both Players have three strategies : A, B and C The…
Q: 8) The value of the marginal product of any input is equal to the marginal product of that input…
A: Marginal product of labor refers to addition in total product by using one more unit of labor.
Q: A project may not be feasible according to future worth analysis although it is feasible according…
A: Present Worth refers to the current value of future cash flow, whereas future worth is the value of…
Q: The impact of an increase in government spending would be to a) increase the interest rate b) leave…
A: Government spending is spending on infrastructure, roads and highways, national defense and…
Q: The table below shows aggregate values a hypothetical country. Real GDP is equ GDP. The numbers are…
A: Aggregate expenditure is the sum of consumption, investment and government spending in a closed…
Q: What would be an example of an implicit cost of production? A. the cost of a delivery truck in a…
A: Total economic cost is the sum of implicit cost and explicit cost.
Q: should nation-states relinquish responsibility for the social reproduction of migrant labor? Why or…
A: Protecting and assisting the poor and vulnerable, such as children, women, the elderly, people with…
Q: If demand is price inelastic: O a. An increase in price decreases revenue O b. An increase in price…
A: Elasticity measures the responsiveness of quantity demanded to changes in price level
Q: physical |product (TPPL) (АPPL) (MP 1 7 2 20 3 39 4 55 5 66 6 70 7 70 8 67 lculate the marginal…
A: All answers given below,
Q: (Figure: Price Discrimination 2) The following figure shows a business that price discriminates. The…
A: Price discrimination is the defined in Economics as a practice of charging different prices from…
Q: Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)? a. 1 b. 2/3…
A: MPC is marginal propensity to consume. It is percentage of income that is spent on consumption.
Q: According to Classical Point of view: a) All goods supplied will be demanded at an unchanged…
A: Cyclical unemployment occurs when the actual rate of unemployment exceeds the natural rate of…
Q: 2012 1000 2012 950 2013 1100 2013 930 2013 1020 2013 870
A: given,
Q: I need help with econ multiple hw questions asap! 101) Typically, as a firm hires additional…
A: (101). Marginal product of labour means the additional output a firm get by using an additional unit…
Q: nt Twa 0 Which of the following s comect Mpe Choce Desied e es minsa e Desi e elactresenes pl…
A: Reserves are the amount of cash held by financial institutions.
Q: Thinking of immigration, should nation-states relinquish responsibility for the social reproduction…
A: There are many reasons that will lead to the migration of labors from one place to another. Higher…
Q: How does logistics play a key role in the econòmy?
A: Logistics refers to the process of purchasing, storing, and transporting resources to their final…
Q: A firm with only fixed costs will have which of the following average cost relationships? As…
A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…
Q: Suppose a firm produces according to the production function Q=3K/3L/3 and faces a wage rate of $5…
A: The Production function Q = 3K1/3L1/3 Wage rate(w) = $5 Rental rate of capital(r) = $2 Output price…
Q: Aworker classified as frictionally unemployed is onewhois Select one a.working part-time but would…
A: Fractionally unemployed are those persons who leave their current job in search of new job. It is a…
Q: I.The firm is in the correct position. 2. The firm should increase price. 3.The firm should decrease…
A: IN any perfect competition, the maximum profit is achieved at the point where, Marginal revenue =…
Q: According to the IMF, what are the world economic growth projections for 2013 and 2014?
A: World Economic Outlook is released by IMF that projects the global economic growth rate for…
Q: Economic Actions undertaken by agreement between institutional units are called 1. Economic Flows…
A: The answer is - 2. Contracts between parties
Q: Common Policy Conditions form contains six conditions that apply to all coverage parts in a…
A: Strategy conditions are the provisions in an insurance policy that frequently require the protected…
Q: have selected an account that yields 4.87% compounded every tl 4,125,000 that you have saved while…
A: *Answer: Nominal interest rate = 4.87% Interest rate per quarter = 4.87%/4 = 1.2175% Effective…
Q: When countries specialize in producing goods for which they have a comparative advantage and then…
A: When countries specialize in produncing goods for which they have comparative advantage and then…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- a branch office or business segment that shows negative operating income should be shut down do you agree explain briefly select one a no for example if the revenue that will be lost exceed the cost that will be saved it the branch or business segment should not be shut down shut it down will only increase the loss B yes if the branch or business segment shows negative operating income it should be shut down without considering other factors shutting down will stop a drain on the company resourcesIf a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm must decrease output to increase profit must increase output to increase profit is maximizing profit O must shut-down to increase profitA firm should always shut down if its revenue is * a)less than its avoidable costs. b)declining. c)less than its total costs. d)less than its average fixed costs
- if the price is less than lowest average variable cost the firm will shut downThe following diagram shows cost curves for a perfectly competitive firm. SMC 2.60 ATC AVC 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output Price and cost (dollars)The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. $0 (it breaks even) loss of $1,000 Quantity profit of $440 loss of $440 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800 Variable Cost (dollars) $0 360 If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss? 560 960 1,760 3,000 4,800
- Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.The following cost data is for a firm which is selling in a perfectly competitive market: Average fixed Average variable Average total Total Marginal cost S17 product cost S100.00 50.00 33.33 25.00 20.00 cost $17.00 cost $117.00 66.00 47.33 39.25 34.00 2 16.00 15 3 4 15.00 14.25 14.00 14.00 15.71 17.50 13 12 13 16.67 14.29 12.50 11.11 10.00 9.09 7.33 30.67 30.00 14 26 30 35 7 8. 9. 10 11 30.00 30.55 31.60 33.09 35.00 19.44 21.60 41 24.00 48 12 26.67 56 Refer to the data above. If there were 600 identical firms in this industry and total or market demand is as shown below, equilibrium price will be: Quantity demanded 3,000 6,000 9,000 11,000 14,000 19,500 Price $50 42 36 32 20 13 $36
- If a firm's revenues do not cover its average variable costs, then that firm has reached its price taking point shutdown point marginal point opportunity marginBilly’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. What is the Total profit for Billy’s Bean Bag Emporium? Include in your answer your calculationA profit maximizing firm with short run total cost given by: TC = 5q² + 100q + 250 is currently earning a loss of $100. This firm should a. continue to operate despite the loss because the loss is greater than the fixed costs b. shut down because the loss is less than the fixed costs continue to operate despite the loss because the loss is less than the fixed costs d.shut down because the loss is greater than the fixed costs C.
