Should this firm exit the market in the long run

Assignment Help Business Economics

Reference no: EM13982014

Suppose a firm is doing the best that it can and faces the following data: TR = 40, FC =20, VC =50

a) Should this firm exit the market immediatly? Explain

b) Should this firm exit the market in the long run? Explain

Reference no: EM13982014

Questions Cloud

Necessary for the existence of a nash equilibrium : Which of the following conditions are necessary for the existence of a Nash equilibrium?

Calculate the government budget surplus : Calculate the government's budget surplus or deficit at the equilibrium level of income. Calculate thetrade balance (net exports). Illustrate the trade balance in a diagram of net exports as a function of national income.

Is this papers account of benefits of xbrl similar : The deliverable is a two to three page paper that includes a brief summary of this material, and consideration of the following idea. Is this paper's account of benefits of XBRL similar to the book's.

What about japanese or chinese corporate examples : Why do some U.S. corporate cultures succeed and some fail under these circumstances? What does the General Electric example tell us? What about Japanese or Chinese corporate examples

Should this firm exit the market in the long run : Suppose a firm is doing the best that it can and faces the following data: TR = 40, FC =20, VC =50. Should this firm exit the market immediatly? Explain. Should this firm exit the market in the long run? Explain

What are the values of atc and of mc at this level of output : Express variable cost (VC), total cost (TC), and marginal cost (MC) as functions of L and as functions of Q; and average variable cost (AVC), average fixed cost (AFC) and average total cost (ATC) as functions of Q.

Find the location of the second dark fringe : Find the location of the second dark fringe, the location of the fifth (off axis) bright fringe and the spacing between the fringes.

Cost of producing the next unit of output : Suppose a perfectly competitive firm sees that price is $23 in the market place. It notices that the cost of producing the next unit of output is $26. What advice would you give to this firm?

Consider solow growth model with the production function : Consider the Solow growth model with the production function Y=F(K,L)=KL/K+L. a . Find the production function in terms pf capital per labor. b. What is Solow's equation for the evolution of the capital/labor ratio? c. If capital depreciation rate is..

User Account

All Pages