Question: A firm should shut down when they are experiencing a loss which is less than its total fixed costs price is below average total cost

A firm should shut down when

they are experiencing a loss which is less than its total fixed costs

price is below average total cost

they are experiencing a loss

they are experiencing a loss which is greater than its total fixed costs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

What category of audit report does each scenario fall into? The company is in the airline leasing business. During the year, they changed the 1. 2 depreciation method for the planes, which had a...

Q:

Questions 1-4 At equilibrium output MC 1 . total revenue is ? ATL 2 . total cost is ? 15 AR 6 3 . total profit / loss ( - 7 is? AVC 4 . total fixed cost is 5 . Average Piled cost is ? 130 150...

Q:

The following information describes relevant curves for an individual firm in a perfectly (or purely) competitive industry. Use the information to answer the questions that follow. @ Macmillan...

Q:

Question 1 1pts If the perfectly competitive firm is producing an output level at which price equals marginal cost, it is Group of answer choices earning profits. taking losses. earning normal...

Q:

Increase Question 33 (2 points) The graph below shows the short-run cost curves and three possible marginal revenue curves for a perfectly competitive firm. If the firm were facing MRI, then we know...

Q:

11-9 What is the marginal revenue for the FIRM from selling the 250th unit of output? a. $10 b. $8 C. $6 d. $4 e. zero 11-10 What output should the firm produce? a. 200 b. 250 C. d. 150 300 The next...

Q:

Dear Everyone, I would like to ask for your help in stating 3 recommendations including 2 advantages/pros and 2disadvantages/cons to this case. I. Synthesis/Background of the Case John Abbott was...

Q:

ral neter anzedevifA Instructions: Type a price (between $20 and $70 ) into the Market Price box. Then, type a quantity (30140) into the Quantity box, or use the slider to adjust the quantity. The...

Q:

a. For this firm, if P=$40, total revenue is _______, total cost is $____ and profit is $_____. b. For this firm, if P=$20, total revenue is _______, total cost is $____ and profit is $_____. c. If...

Q:

Scenario: You are a marketing consultant for a specialty coffee bistro and bakery. The business has been operating for about a year and is still not earning a profit. Your role is to determine the...

Q:

I. Assume you have a fixed amount of pasture. The table below shows the relationship between the number of steers run on the pasture and the amount of beef produced. Complete the table using the...

Q:

As a result of loan write-offs, Bank A has to be liquidated by the regulators. The book value of the assets and liabilities of the bank is presented below (in millions of dollars). The market value...

Q:

What are the four areas of finance? Give an example of a financial activity that would fall into each area.

Q:

Which of the following factors can influence the subjectivity of a measurement? Multiple choice question. An appraiser's assessment of fair value. The market price of a publicly traded stock. The...

Q:

need a review on this article https://www.scientificamerican.com/article/can-algae-feed-the-world-and-fuel-the-planet/

Q:

Below i attached all the URL links Click those and take help from them to create a power point presentation and upload here in the image formet then i will create a power point file do not copy and...

Q:

PL) Determine the Forces in the members of Hhe inbenally vealundant truss Shown in E = 29,000 Ksi 2uft 24Pt1 24ft 2iu2 2. Liuz 24 ft 2inz 2inz 2 iuz 2 juz lok 25 K 2 in?

Q:

Determine interval Moments at each joint of the beam shown in figure then Draw V.D and M.D. Delemire intemal Moments A Hhe beam Shown in Figure. then draw V.D aud M.D at each joint 60K 30K 2.4 KIft...

Q:

1. Prepare journal entries in the capital projects fund to reflect the following events and transactions: a. The city approves (and gives accounting recognition to) the projects budget of $9,027,000,...

Q:

international marketing Write a short note on the followings. Illustrate your answer with examples. A) Psychic distance

Q:

Do teachers across cultures differ in immediacy? Explain.

Q:

Are learning styles among students different across cultures? Explain.

Q:

What are some of the factors that affect patientprovider communication?