When a firm chooses to shutdown, it is a. Making a poor decision because it should always

Question:

When a firm chooses to shutdown, it is

a. Making a poor decision because it should always produce where marginal cost equals marginal revenue.

b. Making a poor decision because it should always produce where average costs exceed average revenue.

c. Making a good decision as long as the price it is getting is less than its average costs.

d. Making a good decision as long as the price it is getting is less than its average variable costs.

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

Step by Step Answer:

Related Book For book-img-for-question

Issues in Economics Today

ISBN: 978-1259746390

8th edition

Authors: Robert C. Guell

See More Books

Question Posted: Apr 24, 2018 02:37 AM

See More Questions

Both competitive firms and monopolies produce at the level where marginal cost equals marginal revenue. Then, other things remaining the same, why is price lower in a competitive market than in a...
If, at the output where marginal cost equals marginal revenue, both a pure competitor's and a monopolist's marginal revenue is $5.00: a) Both sellers' profit-maximizing price will be $5.00. b) Both...
Multiple Choice Questions: 1. Pure monopoly is defined as a. An industry consisting of a single seller. b. A market structure that involves many substitute products. c. A market in which many rival...
Use the formula A= P(1+) to find the total amount of money accumulated for an initial investment $600 at 8% compounded semiannually after 7 years. Round to the nearest cent (in dollars and cents)....
Repeat Exercise 7.53 for three numbers. Try to design an O(N2) algorithm. We are given an array that contains N numbers. We want to determine if there are two numbers whose sum equals a given number...
Smooth Sounds manufactures and sells a new line of MP3 players. Unfortunately, Smooth Sounds suffered serious fire damage at its home office. As a result, the accounting records for October were...
Outline the various forms in which a company may report its environ- mental performance and distinguish between an "environmental report' and a 'sustainability report'.
Equation 3.9 indicates that the choice as to whether to convert from a deductible IRA into a Roth IRA when the taxpayer expects his future tax rate to decline depends on the relative magnitude of the...
On January 1, 2024, Ling Services issued $165,000 of five-year, 12% bonds when the market interest rate was 10%. The issue price of the bonds was $177,758. Ling uses the effective-interest method to...
Based on the scenario below, you will complete a Balance Sheet. Read the scenario. Identify pertinent information and use it to fill in numbers on the Balance Sheet below. Not all information may be...
Per capita real economic growth during the preRevolutionary War era was a. Negative. b. Zero. c. 1 percent. d. 2 percent.
How important is international trade to the U.S. economy? In terms of volume of exports and imports, what country is the United States most important trading partner? Was the United States the worlds...
Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed an accounting course at her local college. One of the topics covered in the course was...
Give an implementation of minus () for Vector solely in terms of the other Vector methods, such as direction() and magnitude().
Modify Htree (Program 2.3.4) to animate the drawing of the $\mathrm{H}$-tree. Next, rearrange the order of the recursive calls (and the base case), view the resulting animation, and explain each...
Write a data type Point that implements the following API: public class Point Point (double x, double y) double distanceTo (Point q) String toString() Euclidean distance between this point and q...
Write a function isWatsonCrickPalindrome() that takes a DNA string as its input and returns true if the string is a Watson-Crick complemented palindrome, and false otherwise. A Watson-Crick...
Longest common strictly increasing subsequence. Given two integer arrays, find the longest increasing subsequence that is common to both arrays.
Sketch a continuous function f on some interval that has the properties described. The function f has one inflection point but no local extrema.
Convert the numeral to a HinduArabic numeral. A94 12
What is the relationship between attitudes and behavior?
Compare and contrast the job attitudes discussed in this chapter.
How can managers increase job satisfaction and what are the organizational consequences when there are high or low levels of job satisfaction?
Describe, in steps, at least one strategy used to attack embedded operating systems. Describe, in steps, at least one strategy used to defend against the chosen attack.
how does a hypercompetetice environment challenge those in an industry
Describe how managers can reduce unnecessary costs, including real - world examples of how it has been done

When a firm chooses to shutdown, it is a. Making a poor decision because it should always

Question:

Step by Step Answer:

d Making a good decision as long as the pric...View the full answer

Issues in Economics Today

Students also viewed these Business questions