Business, 28.10.2020 14:00 lydia1melton

Using the axes as constructed below, depict marginal revenue and marginal cost curves that would support the conclusion that the optimal short run output is q = 1000. Be sure to label all important values. upload graph. Question 1B

Is this a short run equilibrium? Explain.

Question 2A

Reproduce your graph from Question 1, but add an average total cost curve to the picture in such a way that the firm is earning zero profits (π = 0).
Upload your graph.
Question 2B

Does your graph in Question 2A depict a short run equilibrium? If so, explain why. If not, explain why not.

Question 3A

Again, reproduce your graph from Question 1. For this question, depict a different ATC curve, one where the firm has negative profits (π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine whether to shutdown or keep producing at Q = 1000.
Upload your graph.

Question 3B

Should the firm produce Q = 1000 in the short run or should it shutdown, producing Q = 0?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

Roi analysis using dupont model. charlie? s furniture store has been in business for several years. the firm? s owners have described the store as a ? high-price, highservice? operation that provides lots of assistance to its customers. margin has averaged a relatively high 32% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of $800,000. a discount furniture store is about to open in the area served by charlie? s, and management is considering lowering prices in order to compete effectively. required: a. calculate current sales and roi for charlie? s furniture store. b. assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same roi as they currently earned. c. suppose that you presented the results of your analysis in parts a and b of this problem to charlie, and he replied, ? what

Answers: 1

Answer

Business, 22.06.2019 12:00

Select the correct answer. martha is a healer, a healthcare provider, and an experienced nurse. she wants to share her daily experiences, as well as her 12 years of work knowledge, with people who may be interested in health and healing. which mode of internet communication can martha use? a. wiki b. email c. message board d. chat e. blog

Answers: 2

Answer

Business, 22.06.2019 17:40

Because the demand for wheat tends to be inelastic. true or false

Answers: 1

Answer

Business, 22.06.2019 22:10

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.

Answers: 1

Answer

You know the right answer?

Using the axes as constructed below, depict marginal revenue and marginal cost curves that would sup...

Questions