Wednesday
July 23, 2014

Homework Help: Economics

Posted by Michelle on Wednesday, November 9, 2011 at 8:59pm.

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?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - For the following characteristic say whether it describes a ...
Economics - You’ve been hired by an unprofitable firm to determine whether it ...
economics - Complete the following table for the firm below which is selling its...
Economics - Yeah, so I'm in urgent need of help with this homework. 1. Assume ...
ECON - I am working on this but, if I have part a and b wrong, all of the ...
Economics - For the following characteristic say whether it describes a ...
Economics - Short run profit maximization - Given the following for perfectly ...
managerial economics - Total cost function of a firm is TC= 200+4Q+2Q squared If...
economics - The graph on the left shows the short-run marginal cost curve for a ...
economics - Can someone assist me with these two questions. Thanks A perfectly ...

Search
Members