User Account

All Pages

Average revenue of the firm

Assignment Help Business Economics
Reference no: EM131405460

A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?

  • The average revenue of the firm is $20. 

  • The firm should shut down.

  • The firm should operate in the short run but shut down in the long run.

  • The marginal cost of the good is $4.

Reference no: EM131405460

Questions Cloud

Examine null hypothesis that machine is adjusted properly : For a sample of 35 nails, the mean length is 2.025 inches. Using the 0.01 level of significance, examine the null hypothesis that the machine is adjusted properly. Determine and interpret the p-value for the test.
Therapeutic market definition of the pharmaceutical : How do the six-digit North American Industry Classification System (NAICS) and the therapeutic market definition of the pharmaceutical industry differ in terms of seller concentration? Which do you think is a better measure? Why? Think in terms of..
Market rate of substitution : What is the market rate of substitution between food and "all other goods"? On the same graph, show how the Food Stamp program alters the average consumer's budget line. Would this consumer benefit from illegally exchanging food stamps for cash? E..
Does given recent experience suggest a decline in spending : In a one-tail test at the 0.05 level of significance, does this recent experience suggest a decline in spending? Determine and interpret the p-value for the test.
Average revenue of the firm : A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?
Critically review the issues highlighted in employees : 7HR007 International HR: Contemporary Issues Assignment. Critically review the issues highlighted in selecting professional level employees for international assignments
Result of project which will generate additional : Since government spending is part of GDP, this spending in your town delivers a $50 million boost to GDP. What will happen in and around your town as a result of this project which will generate additional increases to GDP?
Analyze the current state of the government regulation : Compare and contrast the regulatory alternatives discussed in Chapter 8 of the text in terms of the efficiency and efficacy these alternatives might provide to businesses and consumers. Next, determine which solution is the most viable, considerin..
Determine and interpret the p-value for the test : At the 0.01 level of significance, does the machine appear to be in need of maintenance and calibration? Determine and interpret the p-value for the test.

Reviews

Write a Review

Business Economics Questions & Answers

  Policymakers should do to the fed funds rate

What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?

  Explain the pros and cons of the self correcting economy

Rather than the short run effects of decreasing government spending, allow a self correcting economy to bring the model back to equilibrium, the government decides to act to eliminate the output gap through monetary policy. Explain how the government..

  Relative factor intensity of commodity

What is meant by "relative factor intensity of a commodity" and "relative factor abundance of a country"? How are the concepts used to explain the commodity composition of trade? (What a country exports and what it imports). Review sections 5.3 and 5..

  Time value of money and tax credits of the interest payments

Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL closing costs will be around $3,000. If you go for refinancing, how many m..

  Short run-average total cost curve and average variable cost

Suppose a firm's short run total cost curve can be expressed as STC (Q) = 50Q + 10. Calculate the firm's short run-average total cost curve and average variable cost.

  What will happen to the price of premium coffee

If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.

  Hypothetical prices-quantities demanded of software product

The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.

  Standard deviation of the sampling distribution

The scores of students on the ACT college entrance examination in a recent year had a normal distribution with a mean of 18.6 and a standard deviation of 5.9. A simple random sample of 60 students who took the the exam is selected for study. What are..

  Elucidate how long will it take mexicos real gdp

A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double. Elucidate how long will it take Mexico's real GDP per person to reach the level that the United States was at..

  Understanding contemporary international political economy

Explain the liberal perspective on markets and the state with specific reference to the Keynes/Hayek debate. Why are the differences between them vital for understanding contemporary international political economy?

  Large for encouraging harmful consumer habits

A growing number of businesses—including videogame developers, cigarette companies, soft drink producers, liquor marketers, and fast food chains—are feeling the heat from government, the press, and society at large for encouraging harmful consumer ha..

  Price level-output level in short run and in the long run

Assume that the economy is initially in equilibrium at potential GDP. Use an AD-AS graph to show the effect of an increase in government purchases on the price level and the output level in the short run and in the long run. Explain what is happening..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd