Decide to produce or to shut down in the short run

When, for a specified output level, an absolute or perfectly competitive firm's price is less in that case its average variable cost, so the firm: w) is earning a profit. x) must shut down. y) must increase output. z) must increase price.

How can I solve my economics problem? Please suggest me the correct answer.

View Complete Question

Related Questions in Managerial Economics

Q : Economic Capital and Per Capita Income

The Black Plague which killed millions of medieval Europeans probably mainly directly and instantly resulted in: (1) Greater trust on the mercantilist economic theory. (2) Higher standards of living for survivors. (3) More positive attitudes of early Christian theolog

Q : Marginal Product of Labor Diminishing

Diminishing returns to labor or questions of monitoring and coordination start to overwhelm any gains by specialization and division of labor within this graph at: (1) point a. (2) point b. (3) point c. (4) point d (5) point e.

Q : Explain about cartel in economics A

A cartel is: (a) an oligopoly model which relies on interdependence. (b) an organization of oligopolist firms behaving like a monopoly. (c) an organization of firms that jointly make decisions. (d) All of the above.

Q : Charging the competitive price in the

An apparent monopoly might charge the competitive price in the long run when: (w) exit is costly. (x) entry and exit are relatively costless. (y) this is not a natural monopoly. (z) this is not regulated.

Q : Define the pricing of a new product

Define the pricing of a new product.

Q : Adjust inputs of labor other resources

Firms adjust their inputs of labor or other resources till: (w) revenue is maximized. (x) employment is maximized. (y) marginal product of labor is maximized. (z) profit is maximized. Please choose the right answer

Q : Consumer Interview Survey method of

Explain the Consumer Interview Survey method of Demand Forecasting.

Q : Moral Hazard and Efficiency Wages

Firing a worker who regularly goods off and calls in sick may not resolve the moral hazard problem of shirking when: (w) there is a high probability which the worker will sue the firm. (x) the local unemployment rate is high. (y) average worker productivity is low. (z

Q : Explain the assumptions of Law

Explain the assumptions of Law Diminishing Returns.

Q : Marginal Product of Labor in Firm If

If this firm maximizes profit, this will be producing under circumstances of: (1) increasing returns to labor. (2) economies of scale. (3) diminishing returns to labor. (4) constant returns to labor. (5) adverse selection and moral hazard.

Discover Q & A

Leading Solution Library

Avail More Than 1456280 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1926594
Asked

3,689

Active Tutors

1456280

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment