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2 years ago

consider perfect competition, given the informatiom from the figure if price equals $0.40 the firm shoul

1 answer:

4 0

Consider Perfect Competition, given the information from the figure if price equals $0.40 the firm should : <u>shut down.</u>

<u></u>

<h3>What is Shut Down Point in Perfect Competition?</h3>

A shutdown point is a level of operations at which a company experiences no benefit for continuing operations, and therefore decides to shut down temporarily (or in some cases permanently).

It results from the combination of output and price where the company earns just enough revenue to cover its total variable costs. The shutdown point denotes the exact moment when a company’s (marginal) revenue is equal to its variable (marginal) costs - in other words, it occurs when the marginal profit becomes negative.

A business needs to make at least normal profit in the long run to justify remaining in an industry but in the short run a firm will produce as long as price per unit > or equal to average variable cost (AR = AVC). This is called the shutdown price in a competitive market.

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2. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of

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Answer:

In the absence of international trade, the domestic price of meekers is $40. Suppose that the world price of meekers is $39.

When the world price is lower than the domestic price the country imports and domestic price goes down

If Meekertown allows free trade,then it will import meekers

Meekertownian consumers were worse off without free trade than they are with it.-TRUE

Meekertownian producers were worse off without free trade than they are with it.- FALSE

True or False:

When a country is too small to affect the world price, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.-FALSE

Explanation:

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4 years ago

Residents of the town of Smithfield like to consume hams, but each ham requires 10 people to produce it and takes a month. If th

Hunter-Best [27]

Answer:

10 hams

Explanation:

It is given that 10 people can produce 1 ham in a month. It is assumed that whatever is produced is consumed. So, 100 people will produce 10 hams that is 100 ÷ 10 = 10 in a month. So, 100 people can consume 10 hams, that are produced in a month.

So, residents can consume maximum 10 hams (same amount as produced) in a month.

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3 years ago

The fact that financial services are more plentiful and easier to access means that

DaniilM [7]

A. consumers need to be better informed about what services are available and what those services cost.

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4 years ago

For analysis purposes Jay considers his restaurant to have three revenue centers. These are the dining room, the bar and off-sit

Kay [80]

Answer:

40%

Explanation:,

In order to find the percent of Jay’s total revenue that was contributed by off site catering, you have to divide $20,000 by $50,000 to get the weight of off site catering revenue in the Jay's total revenue and multiply for 100 to get the percentage:

($20,000/$50,000)*100= 40%

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3 years ago

I'll give brainliest if you help out

Archy [21]

Explanation:

you should sell your own shirts, jackets, pants, and etc.

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3 years ago