Higher sales level will cause average fixed cost to decrease

Assignment Help Business Economics

Reference no: EM131009753

It would be reasonable for a typical purely competitive wheat farmer to lower his price per bushel in order to sell more. The higher sales level will cause average fixed cost to decrease and this will result in more profit for the individual farmer. True or false, and why?

Reference no: EM131009753

Questions Cloud

Short-run increase in wage rate in com-petitive labor market : Which of the following would result in a short-run increase in the wage rate in a com- petitive labor market?

An indication of the games nash equilibrium : Model the following situations as a game. Ensure that your game's payoffs match the situation. Your answer should consist of a payoff matrix, a short explanation, and an indication of the game's Nash equilibrium. You and your classmate plan to meet l..

The equilibrium of a competitive labor market is associated : The equilibrium of a competitive labor market is associated with

They simply extensions of existing products : Choose a company in which you are interested. Search to find out what new products that company has brought to market in the past year or two. Are those products truly new innovations, or are they simply extensions of existing products? What consider..

Higher sales level will cause average fixed cost to decrease : It would be reasonable for a typical purely competitive wheat farmer to lower his price per bushel in order to sell more. The higher sales level will cause average fixed cost to decrease and this will result in more profit for the individual farmer. ..

Graduated with an enginering degree and started working : As soon as she graduated with an enginering degree and started working, Jamie bought a car for $40,000. A down payment of $10,000 was paid by her dad as graduation gift. The rest of the amount was financed with Generous motors at 3% nominal interest ..

Debt-GDP ratios and economic crises : Debt-GDP ratios and economic crises: The debt-GDP ratio in Belgium exceeded 120% in the early 1990s and has fallen to just over 80% more recently. Italy had a debt-GDP ratio of about 100% even before the euro crisis. The rapid rise in Japan’s debt-GD..

Effect elasticity of demand for teachers in public education : Explain how each of the following programs would effect the elasticity of demand for teachers in public education and if so, in which direction.

Consumers to put up the most resistance to the tax : Suppose the demand for gasoline is QD = 75 – 25PD and supply is QS = 30 + 20PS, where prices are expressed in dollars per gallon. How does a $0.40 per gallon tax affect the equilibrium price and quantity of gasoline (show both the pre-tax and post ta..

User Account

All Pages