Draw a short-run diagram showing a U-shaped average total cost curve, a U-shaped average variable cost curve,
Question:
Draw a short-run diagram showing a U-shaped average total cost curve, a U-shaped average variable cost curve, and a
“swoosh”-shaped marginal cost curve. On it, indicate the range of output and the range of price for which the following actions are optimal.
a. The firm shuts down immediately.
b. The firm operates in the short run despite sustaining a loss.
c. The firm operates while making a profit.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
a The firm should shut down immediately when price is less than minimum aver...View the full answer
Answered By
Danish Sohail
My objective is to become most reliable expert for clients. For last 10 years I have been associated with the field of accounting and finance. My aim is to strive for best results and pay particular attention to client needs. I am always enthusiastic to help clients for issues and concerns related to business studies. I can work on analysis of the financial statements, calculate different ratios and analysis of ratios. I can critically evaluate stock prices based on the financial analysis and valuation for companies using financial statements of the business entity being valued with use of excel tools. I have expertise to provide effective and reliable help for projects in corporate finance, equity investments, financial accounting, cost accounting, financial planning, business plans, marketing plans, performance measurement, budgeting, economic research, risk assessment, risk management, derivatives, fixed income investments, taxation, auditing, and financial performance analysis.
4.80+
78+ Reviews
112+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Draw a short-run diagram showing a U-shaped average total cost curve, a U-shaped average variable cost curve, and a swoosh-shaped marginal cost curve. On it, indicate the range of output and the...
-
1.) Karma and Don run a furniture-refinishing business from their home. Which of the following represent an explicit cost of the business and which represent an implicit cost? a. supplies such as...
-
Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
-
CMOS Chips is hedging a 20-year, $21 million, 8% bond payable with a 20-year interest rate swap and has designated the swap as a fair value hedge. The agreement called for CMOS to receive payment...
-
The Connecting Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred: Sept 7 Connecting Company...
-
800 tests using a significance level of \(5 \%\). We are conducting many hypothesis tests to test a claim. In every case, assume that the null hypothesis is true. Approximately how many of the tests...
-
Why is it difficult to implement enterprise systems?
-
On July 1, 2014, Flanagin Corporation issued $2,000,000, 10%, 10-year bonds at $2,271,813. This price resulted in an effective-interest rate of 8% on the bonds. Flanagin uses the effective-interest...
-
If abuse is discovered in the context of counseling how would this need to be handled?
-
Maine has a very active lobster industry, which harvests lobsters during the summer months. The rest of the year lobsters can be obtained from other parts of the world, but at a much higher price....
-
In each of the following situations, do you think the industry described will be perfectly competitive or not? Explain your answer. a. There are two producers of aluminum in the world, a good sold in...
-
Suppose \(x \sim N\left(0, u^{2} ight), y \sim N\left(0, \sigma^{2} ight)\), and \(x\) is independent of \(y\). Given \(x+y=1\), find the MLE for \(x\).
-
The following data is given regarding three investments Gov Bond, Zam Beef and Zam Chicken. Predicted rate of return (%) State Probability GOV BOND ZAM BEEF ZAM CHICKEN Boom 0.3 10 25 14 Normal 0.45...
-
Let z denote any nonzero complex number, written z = rele (- < 0 ), and let ra denote any fixed positive integer (n = 1, 2,...). Show that all of the values of log(z/") are given by the equation...
-
Use the information and construct Common size balance sheet Balance sheet as a percentage of sales Assets Cash & securities Accounts receivable Inventories Prepaid expenses Total current assets Plant...
-
column column L=5m Vd a) Perform shear design of the beam by considering the concrete contribution. b) Draw the reinforcement scheme for the beam for transverse sections. Pd = 45 kNm h = 550 mm b=600...
-
1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with...
-
Fahrenheit Company manufactures a product that requires the use of a considerable amount of natural gas to heat it to a desired temperature. The process requires a constant level of heat, so the...
-
Use the T account for Cash below to record the portion of each of the following transactions, if any that affect cash. How do these transactions affect the companys liquidity? Jan. 2 Provided...
-
Using supply-and-demand diagrams, show the effect of the following events on the market for sweatshirts. a. A hurricane in South Carolina damages the cotton crop. b. The price of leather jackets...
-
Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, what happens to the market for ketchup? For tomatoes? For tomato juice? For orange juice?
-
The market for pizza has the following demand and supply schedules: a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market? b. If the actual price in this...
-
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,400 units) Variable expenses Contribution margin. Fixed expenses Net operating income....
-
Translate into algebraic symbol: Sum of the digits of a two -digit number if the tens digit is 2 less than the units digit x (x+2)+x (x-2)+x x-2 x+2.
-
Find the coordinates of point P along the directed line segment AB, from A(8, 0) to B(3,-2), so that the ratio of AP to PB is 1 to 4. A(8, 0), B(3,-2)
Study smarter with the SolutionInn App