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Author Question: The owner of Tie-Dyed T-shirts, a perfectly competitive firm, hires you to give him economic advice. ... (Read 210 times)

deesands

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on: Apr 19, 2019

The owner of Tie-Dyed T-shirts, a perfectly competitive firm, hires you to give him economic advice. He tells you that the market price for his shirts is $15 and that he is currently producing 200 shirts at an 
AVC of $10 and an 
ATC of $20. What would you recommend that he do?


◦ Continue producing in the short run, as his loss from production is less than his fixed costs, but exit the industry in the long run if there are no changes in economic conditions.
◦ Shut down in the short run, as he is incurring a loss, and leave the industry in the long run, if there are no changes in economic conditions.
◦ Continue to produce in the short run, even though he is earning a loss, and expand production in the future hoping to increase market share and total revenue.
◦ Tell him that you cannot make any recommendations until you know what his fixed costs are.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by deesands on Apr 19, 2019

scikid

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Reply #1 on: Apr 19, 2019
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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deesands

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Reply 2 on: Apr 19, 2019
:D TYSM

irishcancer18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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