Suppose a firm is maximizing profits in the short run with variable factor x 1 and fixed
Question:
Suppose a firm is maximizing profits in the short run with variable factor x1 and fixed factor x2. If the price of x2 goes down, what happens to the firm’s use of x1? What happens to the firm’s level of profits?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
The use of ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Multiple Choice Questions 1. In the long run, which of the following outcomes is most likely for a firm? a. Zero accounting profits but positive economic profits b. Zero accounting profits c....
-
Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run? Select one: a. P < MC b. P = MC < AC c. P < AVC d. P = MR e. None of the above...
-
Suppose that Pattys Pool has the demand data given in Table. Further, suppose that Patty has just two types of costs: (1) rent of $24 per day and (2) towel and other service costs equal to $5 per...
-
Complete your review of the Stevens District Hospital Strategic Planning Scenario, you have been asked to provide a presentation to the governing board of the hospital. This board is comprised of the...
-
This case describes the problems that can occur when trying to coordinate time-off leaves for employees. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion...
-
4. The impeller of a centrifugal pump is of 300 mm diameter and 50 mm width at the periphery, and has blades whose tip angle incline backwards 60 from the radius. The pump delivers 17 m/min. of water...
-
Briefly describe the six different branches of AI technology.
-
Milner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2010, accepting Tungs $30,000, 6-month, 6% note. Prepare Milners November 1 entry, December 31 annual adjusting entry,...
-
You are charged with choosing a topic in the field of juvenile justice for your research paper.You need to provide me with the research topic selected, as well as your associated sub-topics. Review...
-
A tall standpipe with an open top (see figure) has diameter d = 2.2 m and wall thickness t = 20 mm. (a) What height h of water will produce a circumferential stress of 12 MPa in the wall of the...
-
A profit-maximizing competitive firm that is making positive profits in long-run equilibrium (may/may not) have a technology with constant returns to scale.
-
If pMP 1 > w 1 , then should the firm increase or decrease the amount of factor 1 in order to increase profits?
-
Referring to the person holding a baseball in Problem 6, suppose the biceps exert just enough upward force to keep the system in static equilibrium. (a) Is the force exerted by the biceps more than,...
-
How many employees does Henry Books have? What is the most expensive book? List the price and the title aspart of the output. For each type of book, list the type and the average price forthose books...
-
BS.2. File Paste Clipboard C2 A Home Calibri BIU Insert Font 11 B 2 Matchups Pivot Table 3 4 Guide dog 5 Pet 6 Service dog 7 Therapy dog 8 Grand Total 9 10 11 Page Layout A A F Sum of Weeks of...
-
From within Kali, create a user named = jimmy with the password= password123! Create another user named = jesse with the password =essej Start the ssh service. From the terminal, ssh into the...
-
Use Gamemaker Studio. Give me a zip file. Create sprites for the player plane and for the background Right click on Sprite and select Create sprite in the resourcepanel. rename the sprite spr_plane...
-
How do I make exceptions to the code? I. IMPORTANT FACTS: CS112: Programming (2) - Group Project Second Semester 2020-2021 Deadline: Tuesday 13 April 2021 at 11:00 pm. Mark Returned: within one...
-
From 1996 to 2004, the median weekly earnings of workers represented by unions went from $610 to $776, and the Consumer Price Index (19821984 = 100) went from 156.9 to 188.9. What was the percentage...
-
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
-
As you may recall from the chapter on cost functions, Irmas handicrafts has the production function f(x1, x2) = (min{x1, 2x2})1/2, where x1 is the amount of plastic used, x2 is the amount of labor...
-
Jack Benny can get blood from a stone. If he has x stones, the number of pints of blood he can extract from them is f(x) = 2x1/3. Stones cost Jack $w each. Jack can sell each pint of blood for $p....
-
Here are some drills for you on finding market supply functions from linear firm supply functions. The trick here is to remember that the market supply function may have kinks in it. For example, if...
-
Consider the vectors u=2ij2k and v=2i+2j+4k. Find the vector components of u that are parallel and perpendicular to v.
-
1. Determine whether the following sets form subspaces and justify your answers. (a) {(1, 2): 122 = 0} in R (b) {(1, 2) |1|-|x2|} in R2 (c) {(x1, x2, x3): x3 = 21 or x3 = 12} in R3 (d) {(x1, x2, x3):...
-
Solve the system of two equations for y two equations are: A1=ax+by A2=cx+dy
Study smarter with the SolutionInn App