In a competitive industry-the market-determined price

Reference no: EM13686028

In a competitive industry, the market-determined price is $12. For a firm currently producing 50 units of output, average total cost is $14, short-run marginal cost is $15 and average variable cost is $7. a. Is this firm making the profit-maximizing decision? Why or why not? If not, what must the firm do? Should the firm shut down? Describe.

Reference no: EM13686028

Questions Cloud

Presume a perfectly competitive firms demand curve : Presume a perfectly competitive firm's demand curve is below its average total cost curve. Describe the conditions under which a firm continues to produce in the short turn.

What is the concentration of nacl in the original : What is the concentration of NaCl in the original 1.00 L solution?

Most commonly to control the money supply : Which tool does the Fed use most commonly to control the money supply?

A central bank would decrease the money supply to : A central bank would decrease the money supply to

In a competitive industry-the market-determined price : In a competitive industry, the market-determined price is $12. For a firm currently producing 50 units of output, average total cost is $14, short-run marginal cost is $15 and average variable cost is $7. a. Is this firm making the profit-maximizing ..

Determine the partial pressure of the hydrogen collected : Determine the partial pressure of the hydrogen collected in the gas collection tube

How can a business use the knowledge : Identify and list three areas that you found interesting. How can a business use the knowledge of these areas in making well-informed business and employee decisions?

Predict the molecular geometry around all central atoms : Predict the molecular geometry around all central atoms

Long-run supply curve that slopes upward : Which of the following statements is true for a long-run supply curve that slopes upward? If total market output is increased unit costs of production increase if total market output is unchanged, unit costs of production increase. The total cost of ..

User Account

All Pages