Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

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?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91233279

Have any Question?


Related Questions in Microeconomics

Question choose and focus on one negative consequence of

Question: Choose and focus on one negative consequence of globalization. Explain what the issue is, and why it is problematic for the world. Describe what you think should be done to improve this situation. If you think ...

Question bull this assignment must be submitted on

Question: • This Assignment must be submitted on Blackboard (WORD format only) via the allocated folder. • Email submission will not be accepted. • You are advised to make your work clear and well-presented; marks may be ...

Question consider an economy with two individuals and two

Question: Consider an economy with two individuals and two goods. Preferences are Leontief and in particular, u1(x, y) = min{2x, y} and u2(x, y) = min{x, 2y} Initial endowments are ?1 = (4, 0) and ?2 = (0, 4) (a) Derive ...

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 a john has 40 gallons of gasoline g and 20 bags of

Question: a) John has 40 gallons of gasoline (G) and 20 bags of sugar (S). For that market basket, John's MRSSG is 3G/1S. Maria has 40G and 50S. For that market basket, Maria's MRSSG is 1G/1S. Use a numerical example to ...

Question what works for kids to get rid of worries and

Question: What works for kids to get rid of worries and anxiety while playing sports? How might one's feelings about one's self influence this? The response must be typed, single spaced, must be in times new roman font ( ...

Question standard economic theory examines competition as

Question: Standard economic theory examines competition as the number of firms within the market. What was Hayek's contention with this view in The Meaning of Competition? Instead, what did Hayek say was the better way t ...

Question do you think new economic policies should be

Question: Do you think new economic policies should be created to make our current and future healthcare system more competitive? If so, what are the 2-3 areas in the U.S. healthcare delivery system that need to be more ...

Question why do prices in monopolistic competitive markets

Question: Why do prices in monopolistic competitive markets remain above the prices that would exist in perfectly competitive markets even in the long run after entry has eliminated above normal profits? The response mus ...

Question in 1998 the bank of japan reduced the short-term

Question: In 1998 the Bank of Japan reduced the short-term interest rate to zero, yet the economy did not rally but remained in recession. Why did monetary policy fail to work? What else do you think the Bank of Japan co ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As