Producing at an output level

Assignment Help Business Management
Reference no: EM131348209

A perfectly competitive firm is producing at an output level under the the market price = $125 per unit, while the ATC = $130, AVC = $120, and MC = $125 at that output level. The firm should

A. Stay open but decrease output.

B. Shut down because price is lower than AVC.

C. Staty oepn and maintain the current level of output.

D. Shut down because of negative economic profit.

E. Stay open and raise the price.

Reference no: EM131348209

Questions Cloud

Capital structure in perfect capital markets : Write a 3 pages Report about Capital Structure ( Capital structure in perfect capital markets) ( Debt and Taxes ) ( The costs of Bankruptcy and Financial Distress ) ( Optimal Capital Structure : The Tradeoff theory and its importance facts about leve..
Finance business between prefered stock-common stock : What is the best method to finance a business between Prefered stock, Common stock and finaly Bonds and why is that? Between the three identify advantages and diadvantages for each one
Should hacking be treated as an illegal activity : Do you agree with the speaker's views on hacking? What are your thoughts on hacking? Does hacking add value? Should hacking be treated as an illegal activity?
Determination of a specific leadership theory : Provide research and share insight on the determination of a specific leadership theory associated with leadership via vision.
Producing at an output level : A perfectly competitive firm is producing at an output level under the the market price = $125 per unit, while the ATC = $130, AVC = $120, and MC = $125 at that output level. The firm should
Dollars of the set of cash flows you have been offered : You are valuing an investment that will pay you $26,000 per year for the first 9 years, $34,000 per year for the next 11 years, and $47,000 year the following 14 years (all payments are the end of each year). Another similar risk investment alternati..
Determine the reactance of the reactor : Determine the reactance of the reactor to prevent the breakers being overloaded if a symmetrical short circuit occurs on an outgoing feeder connected to A.
Find the amount due on the maturity date : The best company ordered $8327 worth of jewelry on credit on September 8, the note due in 90 days at 11% interest. On November 10 they made a partial payment of $2000. Find the amount due on the maturity date, and the total interest charged on the no..
What is the gain of the cds buyer from this deal : Two parties enter into a 3-year credit default swap on a notional principal of $500 million. The CDS spread is 300 basis points, and the premium payments are made on the quarterly basis in arrears. The reference entity goes bankrupt 11 months after t..

Reviews

Write a Review

Business Management Questions & Answers

  Create individual accountability with limited conflict

Group goals: What are some ideas to create group goals with limited conflict? Individual accountability: What are some ideas to create individual accountability with limited conflict?

  Requires knowledge of data visualization

With the explosion of the availability and correlation of data, new tools have emerged in an attempt to keep pace. Manual calculation by pen and paper were the visualization tools of the late '70s, which would be inadequate for the assimilation an..

  Determine the advertising mix for a new product

A marketing manager is trying to determine the advertising mix for a new product. Three types of ads are being considered: radio, TV and newspaper. The firm's ad agency has provided the following data:

  What stock price should bondholders convert

Many years ago, Winding Road Maps issued a convertible bond with a conversion ratio equal to 40. The bond's face value is $1,000. (a) For how many shares of stock can a bondholder convert each bond? (b) At what stock price should bondholders convert?

  Style of writing and formatting

Provide background of the case, repeat each question and provide analysis for each questions. Llibrary papers should be used and referenced. Strict APA style of writing and formatting should be followed.

  Determine which new car to buy

Auto Purchase Build a spread sheet that will help you determine which new car to buy. You are specifically interested in determining the annual cost of the car. The factors in determining the cost are:

  Find out if certain personal habits creating a negative

Branch managers are responsible for both the running of the branches and building community relationships. The bank decides which it needs to find out if certain personal habits are creating a negative perception towards customers.

  Why are descriptive statistics important to understand

Why are descriptive statistics important to understand? Please illustrate with a specific example.

  On what basis would the plaintiffs claim

On what basis would the plaintiffs claim that their constitutional rights had been violated by the zoning change? Would they be correct?

  Question about macroeconomicsthere is intense debate

question about macroeconomicsthere is intense debate regarding the impact that industrial relations exerts on

  Scholarly writing

A scholarly writer must present premises that aren't fallacious, ideas that cohere, and a vivid text that inspires the reader. A scholar's writing provides evidence of disciplined thought.

  Background materials these include mortenson

For this assignment take a close look at the four required articles from the background materials these include Mortenson (2014), Cialdini (2001), Conger (1998), and Fracaro (2002). Pay close attention to what you perceive as the usefulness of the..

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