If a competitive firm is losing money, then: a. It should always shut down. b. It should

Question:

If a competitive firm is losing money, then:

a. It should always shut down.

b. It should shut down if losses are greater than total fixed costs.

c. It should shut down if total fixed costs are greater than losses.

d. It should raise its price.

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

Step by Step Answer:

Related Book For book-img-for-question

Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

See More Books

Question Posted: Dec 29, 2023 07:49 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
What are the three shapes of periodic signals a function generator can produce?
A marine salvage crew raises a crate that measures 1.4 m x 0.75 m x 0.5 m. The average density of the empty crate is the same as seawater, 1.025 x 10 3 kg/m 3 , and its mass when empty is 32 kg. The...
1. Identify the ethical issues involved in the case from a consequentialist and deontological perspective (refer to Chapter 2). 2. Identify the management issues involved in the case. For example,...
Suppose a short rate process in a risk-neutral world is defined by \[\mathrm{d} r=\mu(r, t) \mathrm{d} t+\sigma(r, t) \mathrm{d} \hat{z},\] where $\hat{z}(t)$ is a standardized Wiener process. A...
Each of the following events/amounts is independent of all others. 1. Decrease in inventory. 2. Loss on sale of an asset. 3. Amortization of a patent 4. Increase in wages payable. 5. Increase in...
Identify the factors assessing the existence of employment relationship? Emma Emma, the Makeup Artist: Emma's interest in makeup began in her teenage years. After training at a prestigious makeup...
PART-4 PART-5 PART-6 Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash Investments (short-term) Accounts...
If a firm is producing where MR = MC, and at that output level TR = $4,500, TC = $5,000, and TVC = $4,000 per week, is the firm making or losing money? How much? Should the firm shut down?
If a competitive industry is currently losing money, what can be expected to happen to the number of sellers, the price of the product, the volume of output and losses in this industry over time?
Total liabilities on a balance sheet at the end of the year are $150,000, retained earnings at the end of the year are $80,000, net income for the year is $60,000, common stock is $40,000, and...
Show that 50, of the bugs in generation 1 are brown, 94, in generation 5 are brown, and more than 99, in generation 10 are brown. What is happening?
A family wishes to provide for their childs college education. Being a bit risk averse, they plan to invest in stable yet unspectacular opportunities yielding a 6 percent return. Their best guess at...
You are studying a species of tropical goat and comparing it with a related Arctic species. Based on your knowledge of thermoregulation in mammals and its effect on the size and shape of organisms,...
The analysis is least sensitive to changes in which component? a. Annual revenue b. Initial investment c. Salvage value d. Cannot be determined from the information given
Take a hike or a walk in your neighborhood, and examine some of the plants, insects, birds, and other organisms that you come across. For each organism, note one or two traits that make it adapted to...
Lawrence and Glover published the results of a study in the Journal of Managerial Issues in which they examined the effects of accounting firm mergers on auditing delay. Auditing delay is the time...
Select a mass spectrometric technique with the highest mass resolution for identifying an unknown compound being eluted from a liquid chromatography column
Why wouldnt a producer of toothpaste just lower the price of its product rather than offer consumers a price-off coupon?
If sales promotion spending continues to grow often at the expense of media advertis inghow do you think this might affect the rates charged by mass media for advertising time or space? How do you...
As a community service, disc jockeys from radio station WMKT formed a basketball team to help raise money for local nonprofit organizations. The host organization finds or fields a competing team and...
What is the conclusion about the metabolic capabilities of an organism that produces negative methyl red and Voges-Proskauer tests ?
When an expert is asked to publicly express an opinion, he or she receives benefits or incurs costs as a result. What is the approaches corresponds to one of the factors that experts consider?
The observation that 10 = 1 mod 9 is the basis for the procedure of 'casting out nines'. The method is as follows. Given an integer X written in base 10 (as is usual), compute the sum of the digits...

If a competitive firm is losing money, then: a. It should always shut down. b. It should

Question:

Step by Step Answer:

b It should s...View the full answer

Survey Of Economics

Students also viewed these Business questions