Author Question: Consider a firm that produces 500,00 . units per year. The firm's fixed costs are 100,000 . marginal ... (Read 60 times)

rlane42 · **on:** Jul 1, 2018

Consider a firm that produces 500,00 . units per year. The firm's fixed costs are 100,000 . marginal costs are 250 and the price per unit is 400 . In the long-run, how low can price go before it is profitable to shut down?
a. 150
b. 250
c. 250.20
d. 400

Question 2

The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees
b. hiring only from job fairs
c. spot checks of the quality of employee work
d. replacing closed offices with cubical office spaces