How do fixed costs play a role in the analysis

Assignment Help Macroeconomics
Reference no: EM13187574

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate? Use hypothetical numbers to explain. Information you need to provide include--state the product you are selling, the price of the product, the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total and average variable costs. Then go ahead and make your decision. Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?

Reference no: EM13187574

Questions Cloud

State desiccator after heating and before weighing : Why should you store the crucible plus sample in a desiccator after heating and before weighing? why should you heat the sample to constant mass?
Concept and include strengths and weaknesses of papers : Analyse those papers and make a document with usual report format such like Abstract, Introduction, body, conclusion and references and also appendix.
Find the value of k : The value V (in millions of dollars) of a famous painting can be modeled by the equation V = 10ekt, where t represents the year, with t = 0 corresponding to 1980. In 2003, the same painting was sold for $50 million. Find the value of k.
State the standard free energy of activation of a reaction : The standard free energy of activation of a reaction A is 73.9kJ/mol-1 (17.7 kcal mol-1) at 298 K. Reaction B is one million times faster than reaction A at the same temperature. The products of each reaction are 10.0 kJ mol-1 (2.39 kcal mol-1) mo..
How do fixed costs play a role in the analysis : Use hypothetical numbers to explain. Information you need to provide include--state the product you are selling, the price of the product, the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total and averag..
At what rate is oil flowing from the site of the accident : An accident at an oil drilling platform is causing a circular oil slick. The slick is 0.08 foot thick, and when the radius is 750 feet, the radius of the slick if increasing at the rate of 0.5 foot per minute. At what rate (in cubic feet per minut..
Describe why it is important to use crucible tongs : Explain why it is important to use crucible tongs when you transfer the heated crucible
Find the rate of change of c with respect : The ordering and transportation cost C for the components used in manufacturing a product is C=200(500/x^2 + X/x+300), x > or equal to 1 where C is measured in thousands of dollars and x is the order size in hundreds. Find the rate of change of C ..
Determine expanded demand for housing : during the last ten years Orlando, Florida grew rapidly, with new jobs luring young people to the area. Despite increases in population and income growth that expanded demand for housing, the price of existing houses barely increased, why

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Illustrate the factors comprises in making decisions

Illustrate the factors comprises in making decisions about pricing tobacco products indicating which would be the most influential.

  Mpc change

Assume that economy starts at equilibrium and the mpc= 0.75. Determine what would be the effect of a $300 increase in government spending once all the rounds of the multiplier process are complete?

  Compute the effective price reduction resulting

Compute the effective price reduction resulting from the coupon promotion.

  Compute the total fixed costs and total variable costs

Compute the total fixed costs, total variable costs, average fixed costs.

  You are the administrator of hospital

You are the administrator of hospital and situation has been brought to your attention.

  Brief analysis about monopolistic competitive market

List the four assumptions for the Monopolistic competition model. Now explain how the market will adjust in the long run and draw a corresponding graph for the representative firm in the long run. (Explain your answer.)

  Explain how is the aggregate supply curve

Explain how is the aggregate supply curve different from the supply curve for a single good like pizza.

  Determine the environmental variable

Conduct an environmental scan of businesses at present climate to determine which variable of the environment, such as economic, political, social

  Explain in briefly about two paragraphs supply and demand

Explain in briefly about two paragraphs the supply and demand analysis and the impact of government regulations at McDonalds.

  Calculating national income growth

Suppose fertility motives in rural areas of developing countries. Assume that mortality among children remains constant, but incidence of that mortality shifted from early childhood to late childhood.

  Computing profit maximizing output level

Assume that the total cost function for a single firm in a purely competitive industry is given by following equation:

  Fine demand for a product is inelastic with respect to price

people are not very responsive to the price changes of this product and the absolute change in quantity demanded is less than the absolute change in price. people are not very responsive to the price changes of this product and the magnitude of th..

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!

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