Business, 17.03.2020 17:00 rebeckas0102

Equilibrium price is $8 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 150 units of output. At 150 units, ATC is $11, and AVC is $10. The best policy for this firm is to in the short run. Also, total fixed cost equals and total variable cost equals for this firm. Group of answer choices

Answers: 3

Show answers

Answers

Answer from: smokemicpot

Shutdown, $150 and $1500

Explanation:

The short run decision facing a firm is the average fixed cost, price and average variable cost. If the price ($8) falls below AVC ($10), then shutting down production is the best decision in the short run. Since the firm is producing variable cost is lower than price and can't even cover fixed costs.

ATC=AFC+AVC

11=AFC+10

11-10=AFC

AFC= $1

AFC=TFC/OUTPUT

1=TFC/150

TFC=$150

AVC=TVC/OUTPUT

10=TVC/150

TVC=150 x 10

TVC= $1500

Answer from: crossoverking07

The best policy for this firm is to shut down in the short run. Also, total fixed cost equals $150 and total variable cost equals $1,500 for this firm.

Explanation:

In the short run, policy for a firm is to shut down operation if the price lower than the average variable cost (AVC). This is because, the lower price is too low to cover or pay for variable cost and the firm will continue to run at a loss if it continues to produce or operate.

The total fixed cost and total variable cost can be calculated as follows:

Average fixed cost (AFC) = Average Total Cost (ATC) – Average variable cost (AVC) = 11 – 10 = $1

Total fixed cost (TFC) = AFC × Unit of output = 1 × 150 = $150

Total variable cost (TVC) = AVC × Unit of output = $10 × 150 = $1,500

Therefore, the best policy for this firm is to shut down in the short run. Also, total fixed cost equals $150 and total variable cost equals $1,500 for this firm.

Answer from: Quest

The activity of providing goods and services involving financial and commercial and industrial aspects.

Answer from: Quest

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.

Another question on Business

Business, 22.06.2019 15:10

You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers: 1

Answer

Business, 22.06.2019 15:20

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

Answers: 2

Answer

Business, 22.06.2019 19:20

After jeff bezos read about how the internet was growing by 2,000 percent a month, he set out to use the internet as a new distribution channel and founded amazon, which is now the world's largest online retailer. this is clearly an example of a(n)a. firm that uses closed innovation. b. entrepreneur who commercialized invention into an innovation. c. business that entered the industry during its maturity stage. d. exception to the long tail business model

Answers: 1

Answer

Business, 22.06.2019 22:30

The answer here, x=7, is not in the interval that you selected in the previous part. what is wrong with the work shown above?

Answers: 1

Answer

You know the right answer?

Equilibrium price is $8 in a perfectly competitive market. For a perfectly competitive firm, MR = MC...

Questions