Homework Answers
Ans. Option 3
A firm earning less than its variable cost should shut down because it is not able to cover its variable cost and fixed cost. Thus, its loss is variable + fixed cost. But if it shuts down its loss will reduce to fixed cost only.
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A firm should shutdown only if O marginal profit is zero. O accounting profit is negative....
If a firm is earning zero economic profit, then its accounting profit will: decrease in the...
If a firm is earning zero economic profit, then its accounting profit will: decrease in the long run. be positive. be negative. increase in the long run.
To maximize profits, a firm should set its output where its is zero. O marginal cost...
To maximize profits, a firm should set its output where its is zero. O marginal cost O variable cost O marginal profit O marginal revenue
A firm should shut down only if is less than O revenue; avoidable cost marginal revenue;...
A firm should shut down only if is less than O revenue; avoidable cost marginal revenue; marginal cost O revenue; zero O marginal revenue; unavoidable cost
A firm is making an economic loss of $100,000. This means that: - the firm should...
A firm is making an economic loss of $100,000. This means that: - the firm should immediately exit the industry. - the firm could increase economic profit if its resources were used in a different way. - the firm is not making an accounting profit. - the firm's revenues are less than its opportunity costs. If a firm is making an economic profit of zero: - it will have unhappy stockholders. - it cannot make a higher economic profit by...
I need help with parts C and F ONLY. c.) In the long run, a firm...
I need help with parts C and F ONLY.
c.) In the long run, a firm operating in a perfectly competitive market will earn zero accounting profit, but can still earn positive economic profit d.) In the short run, a firm should exit the industry if its marginal costs exceeds its marginal revenue e.) In the long run, some firms will exit the market if price is below average total cost. f.) A perfectly competitive firm will consider fixed costs...
If a firm's marginal cost exceeds its marginal revenue, then a. profit is negative b. the...
If a firm's marginal cost exceeds its marginal revenue, then a. profit is negative b. the firm should shut down c. cutting back production will increase profits d. the firm should reduce its per-unit cost by increasing its output
If a perfectly competitive firm's marginal revenue is greater than its marginal cost, the firm O...
If a perfectly competitive firm's marginal revenue is greater than its marginal cost, the firm O A. must be making an economic profit O B. will increase its output to increase economic profit. O c. will decrease its output to increase economic profit. OD. cannot increase its economic profit O E. will lower the price.
Draw a diagram showing a competitive firm operating with zero economic profit where P = LAC....
Draw a diagram showing a competitive firm operating with zero economic profit where P = LAC. If the price fell slightly, would the firm immediately go out of business? Why or why not? If only one firm is producing a particular product, we know that price will be above marginal cost. True or false? Explain.
A profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost....
A profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost. o marginal revenue is positive. o the cost of producing an additional unit exceeds the marginal revenue derived from the unit. o economic profit is more than zero.
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total...
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total cost is: TC = a + bQ2. Use only the cost curve given. Determine mathematically the level of output the firm will produce in the long run. Show mathematically if this amount differs from the amount of output the firm would produce in the short run. Explain why a perfectly competitive firm earns zero economic profit in the long run.
To maximize profits, a firm should set its output where its is zero. O marginal cost O variable cost O marginal profit O marginal revenue
A firm should shut down only if is less than O revenue; avoidable cost marginal revenue; marginal cost O revenue; zero O marginal revenue; unavoidable cost
I need help with parts C and F ONLY.
c.) In the long run, a firm operating in a perfectly competitive market will earn zero accounting profit, but can still earn positive economic profit d.) In the short run, a firm should exit the industry if its marginal costs exceeds its marginal revenue e.) In the long run, some firms will exit the market if price is below average total cost. f.) A perfectly competitive firm will consider fixed costs...
If a perfectly competitive firm's marginal revenue is greater than its marginal cost, the firm O A. must be making an economic profit O B. will increase its output to increase economic profit. O c. will decrease its output to increase economic profit. OD. cannot increase its economic profit O E. will lower the price.
Draw a diagram showing a competitive firm operating with zero economic profit where P = LAC. If the price fell slightly, would the firm immediately go out of business? Why or why not? If only one firm is producing a particular product, we know that price will be above marginal cost. True or false? Explain.
A profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost. o marginal revenue is positive. o the cost of producing an additional unit exceeds the marginal revenue derived from the unit. o economic profit is more than zero.
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