Four firms produce four different goods Deter mine which firms should shut down in the short run and or in the long run, given the following data for each PRICE 1 00 0 50 2 00 2 50 TC AFC AVC CRAYON PENCIL PEN HIGHLIGHTER $80 $0 65 1 40 2 00 700 1 00 QUANTITY SHUT DOWN IN THE SHORT RUN SHUT DOWN IN...

Quantity MC MR Shut down in the Short Run Shut Down in the Long R ...

Four firms produce four different goods. Deter mine which firms should shut down in the short run

Question:

Four firms produce four different goods. Deter mine which firms should shut down in the short run and/or in the long run, given the following data for each.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

See More Books

Question Posted: Apr 21, 2015 09:34 AM

See More Questions

In the short run of a model with sticky prices, a reduction in the money supply raises the nominal interest rate and appreciates the currency (Chapter 15). What happens to the expected real interest...
Given the following data for Alberts fabricating production area: Fixed costs for one shift .......= $60,000 Unit variable cost ............= $7 Selling price ....................= $12 Number of...
A perfectly competitive firm will shut down in the short run when a. ATC > P > AVC. b. AVC > P > ATC. c. AVC > P. d. ATC > P.
If a large chilled water plant has 6 chillers and 5 of them are operating at 1 0 0 % , when the operator starts the 6 th chiller, to what percent do the first 5 chillers unload? What formula do you...
1. Review the approaches of the two companies illustrated below. Which tends to vertical integration and which tends to virtual integration? 2. Produce a table summarizing the benefits and...
Hahn Company uses a job-order costing system. Its plant wide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $15 per hour. During the...
The price of a share is $\$ 40$, and it is incremented in $6 \%$ or it goes down in $5 \%$ every three months. If the risk-free interest rate is $8 \%$ per year, continuously compounded,...
If the risk-free rate is 6% and the expected rate of return on the market portfolio is 13%, is a security with a beta of 1.25 and an expected rate of return of 16% overpriced or underpriced?
1. Tesla shares have soared recently. What has changed at Tesla? Why is Tesla once again valued more highly than both GM and Ford? 2. What is the vital link between the construction of the Shanghai...
Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income...
What is total profit (or total loss)? OUTPUT P AR MR MC AVC ATC 1 $140.00 2 130.00 3 120.00 4 110.00 5 100.00 90.00 80.00 70.00 60.00 50.00 $31.00 $31.00 $54.00 28.00 29.50 41.00 31.00 30.00 37.67...
Monopolists can choose to produce at any price along its demand curve, but that option does not exist for firms in perfect competition. Explain.
Sycamore Candy offers an MP3 download (seven-single medley) as a premium for every five candy bar wrappers presented by customers together with 2.50. The candy bars are sold by the company to...
An asset was purchased for $ 1 1 0 , 0 0 0 on January 1 , Year 1 , and originally estimated to have a useful life of 9 years with a residual value of $ 8 , 0 0 0 . At the beginning of the third year,...
Blossom Corporation has outstanding 2 , 0 0 0 of $ 1 , 0 0 0 bonds, each convertible into 7 0 shares of $ 1 0 par value common stock. The bonds are converted on December 3 1 , 2 0 2 5 , when the...
What type of Indexes are the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite? What factors influence the performance of these indexes? Is there a difference between the performances of...
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton Company Adjusted Trial Balance December 3 1 Line Item Description Amount Amount Cash 6 , 8 4 0...
Lucia Company has set the following standard cost per unit for direct materials and direct labor.Compute the direct materials price and quantity variances. ( 2 ) Compute the direct labor rate...
To judge the sensitivity of a projects NPV, financial managers will often compare a projects forecasted cash inflows to the breakeven cash flows. Based on the information provided at MFL, develop a...
A firm offers two products for sale. The marginal cost of one product is new zero once the first unit has been produced. The marginal cost of the other product rises as output rises. What would be...
The following table describes the production possibilities of two cities in the country of Baseballia: a. Without trade, what is the price of white socks (in terms of red socks) in Boston? What is...
The following table describes the production possibilities of two cities in the country of Baseballia: a. Without trade, what is the price of white socks (in terms of red socks) in Boston? What is...
Suppose that in a year an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers. a. Graph the production possibilities curve for the...
f(x)=5x-3, g(x)=x-5 (f+g)(x)=(Simplify your answer.)
(5) A small maintenance project consists of the following jobs whose precedence relationships are given below: Job 1-2 1-3 2-3 2-5 3-4 Immediate Predecessor 15 15 3 5 8 8 Activity 3-6 4-5 4-6 5-6 6-7...
Let X be a binomial random variable with the probability distribution f(x) shown below. Find the probability distribution of the random variable Y=x. f(x)= Bere 3-x x=0,1,2,3 elsewhere Complete the...

Four firms produce four different goods. Deter mine which firms should shut down in the short run

Question:

PRICE 1.00 0.50 2.00 2.50 TC AFC AVC CRAYON PENCIL PEN HIGHLIGHTER $80 $0.65 1.40 2.00 700 1.00 QUANTITY SHUT DOWN IN THE SHORT RUN? SHUT DOWN IN THE LONG RUN? MC =MR 100 200 300 HIGHLİGHTER 400 CRAYON PENCIL PEN

Step by Step Answer:

Quantity MC MR Shut down in the Short Run Shut Down in the Long R...View the full answer

Principles of Economics

Related Video

Students also viewed these Economics questions