Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10 Total Cost Fixed Cost Variable Cost 2000 $24,000 $8000 $16,000 (a) Should this firm shut down in the...


Use the values for a perfectly competitive firm below to answer the questions:<br>Price Quantity<br>$10<br>Total Cost<br>Fixed Cost<br>Variable Cost<br>2000<br>$24,000<br>$8000<br>$16,000<br>(a) Should this firm shut down in the short run? Explain why or why not in 1-4<br>sentences.<br>(b) Assume this firm's total costs do not change in the long run. Should this firm exit<br>in the long run?<br>(c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.<br>

Extracted text: Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10 Total Cost Fixed Cost Variable Cost 2000 $24,000 $8000 $16,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.

Jun 10, 2022
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