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

Author Question: If revenue in the short run is less than variable costs, what should the firm do?? What will be ... (Read 99 times)

altibaby

  • Hero Member
  • *****
  • Posts: 562
on: Jun 29, 2018
If revenue in the short run is less than variable costs, what should the firm do??
 
  What will be an ideal response?

Question 2

What does it mean if an industry has external economies?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sarahccccc

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

The firm should shut down to minimize losses (i.e., loss equal to fixed costs only).

Answer to Question 2

There are external economies in an industry if long-run average costs fall as the size of the industry increases.


altibaby

  • Member
  • Posts: 562
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Controlled Experiments Manipulate a Variable Controlled Experiments Manipulate a Variable
Increasing Costs of Natural Disasters Increasing Costs of Natural Disasters
How to find the derivative of a function when the base and exponent contain a variable x^x How to find the derivative of a function when the base and exponent contain a variable x^x
Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
Benefits and costs of herbicide applications Benefits and costs of herbicide applications
Video: Hyperglycemia Animation

For a complete list of videos, visit our video library