Graphically, a firm's shut down point occurs: to the right of the bottom point of...
Graphically, a firm's shut down point occurs:
to the right of the bottom point of the AVC (average variable cost) curve.
at the maximum point of the AVC (average variable cost) curve.
at the bottom point of the AVC (average variable cost) curve.
to the left of the bottom point of the AVC (average variable cost) curve.
Homework Answers
The shutdown point always occur at the minimum of the AVC , if the price falls below the average variable cost the firm should shutdown. This is becuase if the price goes below the AVC the firm is not covering the variable cost so producing further will not benefit the firm any more. The minimum of the AVC is the bottom point.
Ans: At the bottom point of the AVC.
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Graphically, a firm's shut down point occurs:
to the right of the bottom point of...
This Competitive Firm [Select] * earning profits. They [Select] 4 at the shut-down print because the...
This Competitive Firm [Select] * earning profits. They [Select] 4 at the shut-down print because the AVC is [Select] the MR curve. COST OUTPUT This Competitive Fire [Select ] earning profits. They is not [Select) at the shut-uvir point because the AVC is [Select] the MR curve. COST 30 40 60 OUTPUT This Competitive Firm [Select] earning profits. They at the shut-down point because the AVC is ✓ [ Select ] are are not the MR curve. / N COST...
Question 1A Graphically, a firm's profit-maximizing output can be found by identifying the intersection of the...
Question 1A Graphically, a firm's profit-maximizing output can be found by identifying the intersection of the rising part of the MC curve and the MR curve and making sure that the price of the product is greater than the average total cost. identifying the intersection of the non-falling part of the MC curve and the MR curve and making sure that the price of the product is greater than the average variable cost. identifying the intersection of the rising part...
I know that A) Q*=0 and firm should shut down and B) profits = -$1,000. But...
I know that A) Q*=0 and firm should
shut down and B) profits = -$1,000. But do not understand how to
get C.
PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C)
LEVEL OF OUTPUT WHERE AVC IS MINIMIZED?
3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum poin...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
The minimum point of the average variable cost curve (AVC) is referred to as the a....
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
can you show me how to draw the break even point, shut down point graph with...
can you show me how to draw the break even point, shut down
point graph with illustarting the numbers??
Suppose there are 1,000 firms in a perfectly competitive market for paper. Each firm's cost structure is given in the table below. Output (boxes per week) 200 250 300 350 400 Marginal cost (dollars per additional box) 6.40 7.00 7.65 8.40 10.00 12.40 20.70 Average Average variable total cost cost (dollars per box) 7.80 12.80 7.00 11.00 7.10 10.43 7.20 10.06...
A firm's ATC, AVC, and MC curves are shown in the graph below. Break-even Point ATe...
A firm's ATC, AVC, and MC curves are shown in the graph below. Break-even Point ATe 42- AVC 36- 30+ 24- 18- MC 12- 6+ 12 16 20 24 28 32 36 40 44 48 Reset Quantity supplied a) Plot the break-even (normal profit) point and the horizontal price line that corresponds to the break-even point. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) Plot the...
A firm will shut down in long-run if the a. Firm is making zero economic profits....
A firm will shut down in long-run if the a. Firm is making zero economic profits. b. Price is anywhere above the the minimum average variable cost (AVC) c. Price is above the minimum average total cost (ATC) d. Price is equal to the minimum average total cost (ATC) e. Price is anywhere below the minimum average total cost (ATC)
Question 16. Where is the shut down point in one of the following? Select one: a....
Question 16. Where is the shut down point in one of the following? Select one: a. Price is equal to average variable cost. b. Price is equal to average total cost. c. Price is between average total cost and average variable cost. d. Price is above average total cost. Question 17. Which of the following best descibes the relationship between supply curve and the marginal cost curve for the purely competitive firm in the short run? Select one: a. The...
A firm should not necessarily shut down if: Select one: a. firms suffer losses and the...
A firm should not necessarily shut down if: Select one: a. firms suffer losses and the price is below variable costs. b. price is less than average variable cost. C. total revenue is less than total variable cost. d. firms suffer losses and the price is above variable costs. e. the demand curve facing the firm lies below its average variable cost curve. Previous page 4 5 o 6
This Competitive Firm [Select] * earning profits. They [Select] 4 at the shut-down print because the AVC is [Select] the MR curve. COST OUTPUT This Competitive Fire [Select ] earning profits. They is not [Select) at the shut-uvir point because the AVC is [Select] the MR curve. COST 30 40 60 OUTPUT This Competitive Firm [Select] earning profits. They at the shut-down point because the AVC is ✓ [ Select ] are are not the MR curve. / N COST...
I know that A) Q*=0 and firm should
shut down and B) profits = -$1,000. But do not understand how to
get C.
PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C)
LEVEL OF OUTPUT WHERE AVC IS MINIMIZED?
3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
can you show me how to draw the break even point, shut down
point graph with illustarting the numbers??
Suppose there are 1,000 firms in a perfectly competitive market for paper. Each firm's cost structure is given in the table below. Output (boxes per week) 200 250 300 350 400 Marginal cost (dollars per additional box) 6.40 7.00 7.65 8.40 10.00 12.40 20.70 Average Average variable total cost cost (dollars per box) 7.80 12.80 7.00 11.00 7.10 10.43 7.20 10.06...
A firm's ATC, AVC, and MC curves are shown in the graph below. Break-even Point ATe 42- AVC 36- 30+ 24- 18- MC 12- 6+ 12 16 20 24 28 32 36 40 44 48 Reset Quantity supplied a) Plot the break-even (normal profit) point and the horizontal price line that corresponds to the break-even point. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) Plot the...
A firm should not necessarily shut down if: Select one: a. firms suffer losses and the price is below variable costs. b. price is less than average variable cost. C. total revenue is less than total variable cost. d. firms suffer losses and the price is above variable costs. e. the demand curve facing the firm lies below its average variable cost curve. Previous page 4 5 o 6
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