This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A perfectly competitive firm produces 3,000 units of a good at a total cost of 36,000. The fixed ... (Read 119 times)

tichca

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
A perfectly competitive firm produces 3,000 units of a good at a total cost of 36,000. The fixed cost of production is 20,000. The price of each good is 10. Should the firm continue to produce in the short run?
 
  A) Yes, it should continue to produce because its price exceeds its average fixed cost.
  B) No, it should shut down because it is making a loss.
  C) Yes, it should continue to produce because it is minimizing its loss.
  D) There is insufficient information to answer the question.

Question 2

If a firm has excess capacity, it means
 
  A) that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity.
  B) that the firm's quantity supplied exceeds its quantity demanded.
  C) that the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales.
  D) that the firm is not producing its minimum efficient scale of output.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katheyjon

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


tichca

  • Member
  • Posts: 554
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Rebound Tenderness, Apply Firm Pressure to the Abdomen Rebound Tenderness, Apply Firm Pressure to the Abdomen
Secondary response begins more rapidly after exposure to antigen, produces more antibodies, and ... Secondary response begins more rapidly after exposure to antigen, produces more antibodies, and ...
Good body mechanics when facing the table directly. A. Head and back in alignment. B. Legs and feet ... Good body mechanics when facing the table directly. A. Head and back in alignment. B. Legs and feet ...
Competitive inhibitor Competitive inhibitor
question in cost accounting question in cost accounting
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Hemoglobin's affinity with oxygen - carbon dioxide, temperature and bisphosphoglycerate (BPG)

For a complete list of videos, visit our video library