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erastovalidia [21]
3 years ago
10

What should the firm do if there is no possible output where the price would at least be equal to average variable costs

Business
1 answer:
garri49 [273]3 years ago
3 0

Answer:

Since the average variable cost curve lies below the average total cost curve, this implies that the average variable cost is the lowest price at which the producer can sell.

If there is no possible output where the price would be at least equal to the average variable costs, the firm should cease production, because it is not going to recover its costs, not to talk about making a profit.

Explanation:

A firm's average variable cost is the total variable cost divided by the total output.  For example, if the total variable cost for a particular product is $4,500 with a total output of 450 units, then the average variable cost is $10 ($4,500/450).

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Sheridan considers herself a religious person who attends worship services regularly, but she did not attend worship services fo
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3 years ago
Read 2 more answers
Suppose Firm A has a supply curve of Upper Q Subscript Upper A Baseline equals negative 2 plus p and Firm B has a supply curve o
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Answer:

The total supply can be found by adding individual supply functions as follows:

Qa+Qb = Q

Q = -2+p+0.5p

Q= -2+1.5p where p = $44 therefore;

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8 0
3 years ago
Describe the three most downturns in the United States economy since the 1920's
velikii [3]
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Answer:

Option a and b

Option C                

Explanation:

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