Home Solutions a) In the short run, what is the fixed cost for this firm? Explain your answer fully.
We write, we don’t plagiarise! Every answer is different no matter how many orders we get for the same assignment. Your answer will be 100% plagiarism-free, custom written, unique and different from every other student.
I agree to receive phone calls from you at night in case of emergency
Please share your assignment brief and supporting material (if any) via email here at: [email protected] after completing this order process.
The primary theme of the paper is a) In the short run, what is the fixed cost for this firm? Explain your answer fully. in which you are required to emphasize its aspects in detail. The cost of the paper starts from $79 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.
Use the graph below of a perfectly competitive firm’s cost functions to answer this set of questions.
a) In the short run, what is the fixed cost for this firm? Explain your answer fully.
b) Suppose this firm produces 30 units of output. What is the variable cost of producing this level of output? What is the firm’s AVC of production when it produces 15 units of output. Explain your answer fully.
c) Find the break-even price and the shutdown price. What would happen if the market price was equal to $1 per unit?
d) Suppose the market price of the good in the short-run is $8 per unit.
i. Does the firm maximize its profit by producing 10 units? If no, which quantity maximizes the firm’s profit. Explain your answer fully.
ii. Given the breakeven price, do you think that the firm is earning a positive or a negative profit when the market price is equal to $8?
iii. On the graph indicate the area that represents profits (losses).
e) What do you predict will happen in the long-run in this market?
2) Firms in the long-run do not experience diminishing marginal returns. Then why do some industries have upward-sloping long-run supply curves?
Check Out Our Original Reviews