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.

   Related Questions in Managerial Economics

  • Q : Illustrates definition and meaning of

    Illustrates the definition and meaning of managerial economics?

  • Q : Illustrates the different kinds of

    Illustrates the different kinds of Demand?

  • Q : Profit Maximization in Labor Market and

    As a firm is a pure competitor in both the labor market and during the sale of its product, this will hire labor where: (w) profit is maximized. (x) marginal revenue product = marginal resource cost. (y) wage = value of the marginal product. (z) All o

  • Q : Value of the marginal product of labor

    Profit-maximizing firms which operate in competitive resource and output markets adjust labor inputs till the wage rate equals the: (1) average revenue from output. (2) output price equals average variable cost. (3) marginal utility o

  • Q : Definition of Managerial economics

    Describes the definition of Managerial economics according to Douglas?

  • Q : Substantial amounts of

    A currently-laid-off worker is probably to find another job quickly when the worker has substantial amounts of: (i) unemployment compensation and a strong union. (ii) specific human capital gained at the previous job. (iii) screening,

  • Q : Define the areas of Scope of Managerial

    Define the areas of Scope of Managerial /Business Economics?

  • Q : Different types of determinants of

    What are the different types of determinants of advertisement elasticity?

  • Q : Move downward demand for labor The

    The demand for labor would move downward like a consequence of: (w) grocery stores buying fewer automatic check-out touchpad computers, and in place of relying more heavily on cashiers to ensure friendly interactions along with customers. (x) declines

  • Q : Substitution Consequence on Labor Supply

    The substitution consequence on labor supply decision of an individual is more powerful than the income effect while: (1) higher wage rates result within increased hours worked. (2) cuts in wage rates yield discouraged worker effects. (3) the supply c

©TutorsGlobe All rights reserved 2022-2023.