Question if demand conditions are such that there is no, Ask an Expert

Economics

Question: If demand conditions are such that there is no output at which a firm can make any profit, which of the following would be the best short run policy for the firm to adopt?

shut down

continue to operate so long as there is some output at which it can more than cover its fixed costs

continue to operate so long as there is some output at which it can more than cover its variable costs

discard the rule equating marginal revenue and marginal cost

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92598867

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question suppose ford motor company issues a five year bond

Question: Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150. a. What is the interest rate Ford is paying on the borrowed funds? b. Suppose the marke ...

Question in 2001 and 2002 political opinion was bitterly

Question: In 2001 and 2002, political opinion was bitterly divided between the Republicans, who wanted to cut high marginal personal income tax rates and offer retroactive benefits to corporations by canceling the altern ...

Question investors sometimes fear that a high-risk

Question: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low? The response must be typed, single spaced, must be ...

Question congress has the choice of spending 50 billion on

Question: Congress has the choice of spending $50 billion on either space exploration or increased aid to education. Outline the arguments that would lead you to conclude which type of expenditure is more likely to incre ...

Question a firm has a fixed production cost of 5 000 and a

Question: A firm has a fixed production cost of 5, 000 and a constant marginal cost of production of 500 per unit produced. a) What is the firms total cost function? Average cost? b) If the firm wanted to minimize the av ...

Question an auto manufacturer gives franchised dealers

Question: An auto manufacturer gives franchised dealers exclusive service territories, and the law allows dealers to set prices as they wish. Why might you expect the dealer and manufacturer to disagree about the price t ...

Question consider two countries south korea and taiwan

Question: Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of $10 per phone and South Korea can produce 50 million mobile phones at $5 per phone. Assume the ...

Qestion consider the two-sector endogenous growth model y

Question: Consider the two-sector endogenous growth model Y = F[K, (1-u)LE] Output per effective worker is y = f(k, 1-u) a. What is the steady-state growth rate of output per worker Y/L? How do the savings rate s and the ...

Question would you agree or disagree with the following

Question: Would you agree or disagree with the following statement, "The single most important health policy choice in the United States over the past four decades has nothing to do with the Department of Health and Huma ...

Question an equipment costs 800000 and has a service-life

Question: An equipment costs $800,000 and has a service-life of 10 years with a salvage value of $20,000. The equipment will bring a before tax income of $200,000 every year. Annual operations and maintenance will be $10 ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert