Megatron is a competitive firm operating under the following conditions: Price of output is $15, the profit maximizing level of
1 answer:
Answer:
Firm should be shut down in short run
Explanation:
We have given price of output = $15
Total economic cost = $650000
Total number of units for maximizing profit level = 40000
So average economic cost
As the average economic cost is greater than price of the output
So firm should be shut down in short run
Answer will be firm should be shut down in short run
You might be interested in
Trade-off
A trade-off is a situational decision in which one quality, quantity, or feature of a set or design is reduced or lost in exchange for gains in other areas. A tradeoff occurs when one thing increases while another must decline.
What is consumer's real wage?
Real earnings are salaries that have been factoring in inflation, or wages in perspective of the amount of services and goods that may be purchased.
Main Content
$606
Given the answers to the question, the complete or implicit income of the consumer would be determined as follows:
When the customer works, she earns an hourly wage of $17.00, therefore when she works for 24 hours, she will earn:
=$1724
=$408
Also, when the customer sells all the 17 units of the composite good, she will earn:
=$1118
=$198
Therefore, the customer's full income would be:
=$408+$198
=$606
To learn more about Trade-off
#SPJ4