Assume a firm has the following cost and revenue characteristics at its current level of output: price
Question:
Assume a firm has the following cost and revenue characteristics at its current level of output: price 5 $10.00, average variable cost 5 $8.00, and average fixed cost 5 $4.00. This firm is
a. incurring a loss of $2.00 per unit and should shut down.
b. realizing only a normal profit.
c. realizing an economic profit of $2.00 per unit.
d. incurring a loss per unit of $2.00 but should continue to operate in the short run.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
D Incurring a loss per unit of 200 but should continue to operate in t...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Economics
ISBN: 9781337106665
5th Edition
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward
Question Posted:
Students also viewed these Business questions
-
Assume that a firm in a perfectly competitive industry has the following total cost schedule: OUTPUT (UNITS) TOTAL COST ($) 10 ............. $110 15 .............. 150 20 .............. 180 25...
-
A firm has the following total revenue and total cost schedules: TR = $2Q. TC = $4,000 1 $1.5Q. a. What is the break-even level of output? What is the level of profits at sales of 9,000 units? b. As...
-
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firms product is $150. a. Complete the table. b. At what output rate does the firm...
-
Write a paper about operations of Morning Star homes, a construction company. How you are progressing in your Project Management Plan. When is it appropriate to "crash" a project and what are the...
-
Name or write the condensed structural formula for the following compounds: (a) 4-methyl-2-pentene (b) cis-2,5-dimethyl-3-hexene (c) ortho-dimethylbenzene (d) HC'CCH2CH3 (e) trans-CH3CH"CHCH2CH2CH2CH3
-
The balance sheets of Jumbo plc and of Nipper plc, on the date that Jumbo plc bought the shares in Nipper plc, were as follows: Required: Assume that the balance sheet values of Nipper plcs assets...
-
The text states that matching of costs and revenues is a major challenge of historical cost accounting. Another challenge is revenue recognition, that is, when to recog- nize revenue as realized, or...
-
Emily Frank owns a small retail business called Franks Fantasy. The cash account has a balance of $21,000 on July 1. The following transactions occurred during July: July 1 Issued Check No. 414 in...
-
Foster Company had the following adjusted trial balance: The president of Foster Company has asked you to close the books (make and process the closing entries). Required: After the closing process...
-
A tile-iron consists of a massive plate maintained at 150C by an imbedded electrical heater. The iron is placed in contact with a tile to soften the adhesive, allowing the tile to be easily lifted...
-
Describe an investment decision your company has made. Compute the opportunity costs and benefits of the decision. Did your company make the right decision? If not, what would you do differently?...
-
Describe an investment or potential investment your company (or one of your suppliers or customers) has made that is subject to post-investment hold-up. What could or does your company do to solve...
-
Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a. Determine the total...
-
What are the key elements of a project scope document?
-
Describe briefly the process from project needs assessment to project planning.
-
Why might it be particularly difficult to program a computer to successfully play card games like bridge or poker? What sort of algorithms might you use to play these games?
-
Discuss the key considerations of a comprehensive SOW.
-
Why is it necessary to create time-phased budgets in projects? What are their major strengths?
-
What fatigue allowance should be given to a job if it developed that it took 1.542 minutes to perform the operation at the end of continuous work and but 1.480 minutes at the beginning of continuous...
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
A firm produces output according to a production function Q = F(K,L) = min {2K,4L}. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $30 per hour and the rental rate on...
-
A firm produces output according to the production function Q = F(K,L) = 2K + 4L. a. How much output is produced when K = 2 and L = 3? b. If the wage rate is $30 per hour and the rental rate on...
-
In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroits city council is considering passing a statute that would give investment tax...
-
On your route of flight along Airway J2, what is the radial and DME from the Stanfield (TFD) VOR that identifies ALMON? Group of answer choices 133 degree radial; 37 DME 133 degree radial; 71 DME 288...
-
Examine the three slide bars on the lower right in the geovisualization. Try sliding the Landsat bar to the right at 100%, with geology and triplanar at zero. Then push apply. What data are...
-
The given figure represents a profile plot of velocity using arrows. If more than one component of velocity is plotted by the arrows, the direction of the local velocity vector is indicated, and the...
Study smarter with the SolutionInn App