Suppose price falls to $34. Where should the firm produce, if at all? Does the firm maximize
Question:
Suppose price falls to $34. Where should the firm produce, if at all? Does the firm maximize profit or minimize loss at that output level? How much?
Transcribed Image Text:
OUTPUT P AR MR MC AVC ATC 0 $40.00 1 40.00 40.00 3 40.00 40.00 5 40.00 40.00 7 40.00 40.00 40.00 40.00 $31.00 $31.00 $54.00 28.00 29.50 41.00 31.00 30.00 37.67 34.00 31.00 3675 37.00 32.20 36.80 40.00 33.50 37.33 43.00 34.86 38.14 46.00 36.25 39.13 49.00 37.67 40.22 52.00 39.10 41.40 10
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
At a price of 34 MR MC at 4 units But at 4 units ATC ...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Suppose XYZ Corporation's stock price rises or falls with equal probability by $20 each month, starting where it ended the previous month. What is the value of a three-month at-the-money European...
-
If a profit-maximizing firm is producing an output level in which marginal revenue equals marginal cost, then is this firm earning a profit?
-
Should a firm ever produce if it is losing money (making a negative economic profit)? Why or why not?
-
How should employers that operate in different states and cities deal with lack of uniformity in employment laws?
-
Why are procurement costs currently as high as 60100 per order?
-
Researchers wanted to test the effectiveness of a new cognitive behavioral therapy (CBT) compared with both an older behavioral treatment and a placebo therapy for treating insomnia. They identified...
-
Define mechanical advantage, velocity ratio and efficiency.
-
1. What marketing data would you want to have available to make the decision? 2. What cost data would you need to make a rational decision? 3. What are some of the logistics supply chain issues that...
-
The following terms will be used interchangeably: minimum rate of return, desired rate of return, required rate of return, hurdle rate, cutoff rate, discount rate, cost of capital. Let us assume that...
-
(m) Each of the numbers you just computed will lead to an estimated diameter (in km) of the Sun. To calculate that estimated diameter, you must do the following. 1. First, calculate how many...
-
What is the firm's total profit? AR MR AVC ATC 0 $40.00 40.00 2 40.00 40.00 4 40.00 5 40.00 6 40.00 7 40.00 8 40.00 9 40.00 40.00 $31.00 $31.00 $54.00 28.00 29.50 41.00 31.00 30.00 37.67 34.00 31.00...
-
Suppose the demand curve is downward sloping, as shown in the following table. Calculate marginal revenue at each output level. OUTPUT P AR MR MC AVC ATC 1 $140.00 2 130.00 3 120.00 4 110.00 S 100.00...
-
Write each expression in the standard form a + bi. (-3 + 2i) - (4 - 4i)
-
Which of the following statements are true? A. Object storage has a flat structure. B. Object storage has a hierarchical structure. C. Multipart uploads can only be done for standard tier buckets. D....
-
What are the implications of proactive and retroactive interference for learning multiple foreign languages? Would earlier language training in a different language help or hinder learning a new...
-
Match each of the following organizational laws with its meaning: a. closure 1. b. proximity 2. C. similarity 3. d. simplicity 4. Elements close together are grouped together. Patterns are perceived...
-
Do you think Type A or Type B behavior is more widely encouraged in the United States? Why?
-
What clues do visual illusions give us about our understanding of general perceptual mechanisms?
-
A specific enzyme acts as catalyst in the fermentation of reactant A. At a given enzyme concentration in the aqueous feed stream (25 liter/min) find the volume of plug flow reactor needed for 95%...
-
One of the significant and relevant accounts for this cycle is equipment. For this account, what would typically be the most relevant assertions for the auditor to consider? Why is it important for...
-
Which is the older concept, the idea of quality as conformance or quality as improvement?
-
Will a nation tend to export or import goods for which it has a comparative advantage? Explain.
-
Why do economists oppose policies that restrict trade among nations?
-
Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a. Draw Marias production possibilities frontier for reading...
-
On January 1, 2023, Bertrand, Incorporated, paid $86,900 for a 40 percent interest in Chestnut Corporation's common stock. This investee had assets with a book value of $229,500 and liabilities of...
-
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours...
-
Explain the concept of gene-environment interactions, and how these interactions influence the expression of complex traits and the risk of developing multifactorial diseases ?
Study smarter with the SolutionInn App