Should the firm keep producing in the short

Reference no: EM133339865

Assume the market for a good is perfectly competitive and the market equilibrium price is $5.00. The profit maximizing output is 200. At this output level, the AVC = $3.00 and ATC = $6.00.
Should the firm keep producing in the short run?
Explain.

Reference no: EM133339865

Questions Cloud

What is going on the economy and has an appreciation : He wants you to impress him and convince him that it would be worthwhile for the company to continue paying for your education. In a little speech , what will

Explain how they influenced your opinion : Explain how they influenced your opinion. If I am asking your opinion, you must explain why you feel that way and back up your opinion with the articles

Explain the organization of supply chain in unilever : Explain the organization of supply chain in Unilever. Explain the benefits of key location. Indicate a supply chain strategy for Unilever.

How does organizational politics interfere : Successful companies depend on their employees to seek out new information and to share their new discoveries and ideas with others in the organization.

Should the firm keep producing in the short : Should the firm keep producing in the short run Explain

What does it mean for a currency to appreciate : What does it mean for a currency to appreciate? (b) If you had a business in the US that imported goods from Asia, would you want the currency to appreciate

How does a change in the overnight interest rate : how does a change in the overnight interest rate influence any prevailing interest rate in the economy? (b) how does the overnight interest rate influence

What do effective leaders need to do to manage change : What are the 8 steps of change model? Explain. What do effective leaders need to do to manage change?

How do you think the bank should adjust its money supply : How do you think the Bank should adjust its money supply to ensure that the higher target rate is met? What policy tool would it take to make that adjustment

User Account

All Pages