How do fixed costs play a role in the analysis

Assignment Help Microeconomics
Reference no: EM13238844

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: EM13238844

Questions Cloud

Find two possible values for the length of the pipe : A pipe is open at both ends. The pipe has resonant frequencies of 528 Hz and 660Hz (among others). Find two possible values for the length of the pipe
Explain why agree or disagree with the statement : Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagre..
What is magnitude of electric field at the origin o : Charge Q+ is located d units along y axis in positive direction north of O, What is magnitude of electric field at the origin O
What market structure would the industry fall under : Think about a firm that you have done business with recently. What industry does this firm belong to For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under
How do fixed costs play a role in the analysis : 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
Why was microsoft investigated for antitrust behavior : Key concepts to include in your paper--Monopoly Market Structure, Characteristics of Pure Monopoly, Barriers to Entry into the market, Natural Monopoly, Government Monopoly, Downward Sloping Demand Curve, Economies of Scale, Monopoly Pricing, Pric..
How many grams of air does the tire contain : Your beighbor has a cute Bichon-Frise puppy. assume air is 80% Nitrogen and 20% Oxygen, how many grams of air does the tire contain
Determine the p-value in and interpret its meaning : Digital camers have taken over the majority of the point-and-shoot camera market. One of the important features of a camera is the battery life as measured by the number of shots taken until the battery needs to be recharged.
What is the potential at the center of the ring : A thin ring of radius R carries a charge 3Qdistributed uniformly over three-fourths of its circumference, and -Q over the rest

Reviews

Write a Review

Microeconomics Questions & Answers

  What are some of the problems with the liberalization trend

The continual liberalization of economic supplements appears to be advantageous, at least on the surface. What are some of the problems and/or issues with this liberalization trend

  Does the consumer believe that more is better for each good

Consider the utility function \(U(x,y) = y\sqrt{x}\) a)Does the consumer believe that more is better for each good? b)Do the consumer's preferences exhibit a diminishing marginal utility of x? Is the marginal utility of y diminishing?

  How do active and passive views of these concepts differ

Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related. How do active and passive views of these concepts d..

  Explain why the government might be at ensuring safety

Many economists would argue that private companies are likely to be more efficient than the government at operating airlines. Yet many economists would also argue that there is a valid reason for government to regulate the safety of those same air..

  Explain is the market a case for natural monopoly

The inverse demand function for natural gas in Altoona is P(q) = 11 - Q. The Altoona market has a single natural monopoly producer with a total cost function of C(Q) = 5Q - 0.005Q2.The public utilities commission is thi..

  Provide a demand and supply graph for each industry

Students fascinated with your explanation and eager to learn more, ask about the shape of the demand and supply curve in each industry. Provide a demand and supply graph for each industry to explain. Label equilibrium price and quantity.

  Identify who has the absolute advantage in painting rooms

Identify who has the absolute advantage in painting rooms? Who has the absolute advantage in installing windows? Briefly explain how you derived your answer.

  Pricing factors of production-economic rent

Three machines are employed in isolated area. They each produce 2,000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and third $28,000.

  Why the consistent drop in the price of mp4 players

The price of MP4 players has been going down in the past decade. Give an explanation for this consistent drop in the price of MP4 players. Use the model for long run competitive firm to illustrate your answer. Draw two graphs. One is to show the ..

  Contrast the market demand-supply curves

Contrast the market demand/supply curves and the individual firm's labor supply/demand curve in a perfectly competitive labor market. How does the law of diminishing marginal returns affect a firm's demand for labor

  Find the marginal distribution of party

Find the expected value of X. Show your work and find the variance of X. Show your work and calculate the cumulative distribution function

  Show the calculations that lead to the conclusions

If the firm has $20,000 on hand, with only these two project to choose from, will they invest in A, B, neither or both? Show the calculations that lead to your conclusions. Explain whether you answers would be different for either project if the f..

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