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 116 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
Wow, this really help

chereeb

  • Member
  • Posts: 326
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

A fixed action pattern as an example of innate behaviour. A fixed action pattern as an example of innate behaviour.
Mixing bacterial genotypes produces rare recombinants Mixing bacterial genotypes produces rare recombinants
General structure of eukaryotic pre-rRNA transcription units General structure of eukaryotic pre-rRNA transcription units
Repeating Units of DNA and RNA Repeating Units of DNA and RNA
Total Solid Waste, MSW per Capita Total Solid Waste, MSW per Capita
A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ... A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ...
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library