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1. Assume a firm is operating at the minimum point of its short-run average total cost curve, so that marginal cost equals average total cost. Under what circumstances would it select to alter the size of its plant?

2. describe: In the short-run, why might a firm still operate even when there is a loss?

3. Suppose a firm is producing 1,000 units of output (Q). Its average fixed costs are $100. Its average variable costs are $50. What is the total cost (TC) of producing 1,000 units of output (Q)? It the price (P) of the good is $200, what is total revenue? What is total profit?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937501

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