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Author Question: A perfectly competitive firm produces 3,000 units of a good at a total cost of 36,000. The fixed ... (Read 103 times)

tichca

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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
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katheyjon

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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.
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tichca

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

lindahyatt42

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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