At its best possible output level, a firm has total revenue of $3,500 per day and total

Question:

At its best possible output level, a firm has total revenue of $3,500 per day and total cost of $7,000 per day. What should this firm do in the short run if?

a. The firm has total fixed costs of $3,000 per day?

b. The firm has total variable costs of $3,000 per day?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

See More Books

Question Posted: Dec 11, 2012 12:21 AM

See More Questions

A firm has total revenues given by R(x) = 2800x-8x2-x3 dollars for x units of a product. Find the maximum revenue from sales of that product.
A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?
A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio? A) 45% B) 40% C) 55% D) None of the above
Sam's Furniture uses variance analysis to evaluate manufacturing overhead in its' factory. The information for the June overhead expenditures is as follows: Budgeted output units 22,000...
Find a basis for the vector space T of lower triangular 3 Ã 3 matrices; that is, matrices of the form where an asterisk represents any complex number. 00 +]
Identify three recent examples in the literature of knowledge application systems.
Was it foreseeable that Mr. Vosovic, once home, would leave the house in his intoxicated condition?
Using the information from C4-2 and assuming that the beginning budgetary and GAAP fund balance is $1,952,667, prepare the Statement of Revenues, Expenditures, and Changes in Fund BalanceBudget and...
Cullumber Company reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 130 388 $5 6 $650 2,328 12 Purchases 23 Purchases 215 1,505 Inventory 230 X...
Write a program to simulate a buzzer The program should make use of the Thread class Create a class named Buzzer that extends the Thread class Create an interface named MonitorTime which contains a...
The following tables give information about demand and total cost for two firms. In the short run, how much should eachproduce? Quantity Total Cost above $125 Quantity above $500 $1,100
Suppose you own a restaurant that serves only dinner. You are trying to decide whether or not to rent out your dining room and kitchen during mornings to another firm, The Breakfast Club, Inc. That...
For the three vectors shown in Figure P3.47, the vector sum $\vec{D}=$ $\vec{A}+\vec{B}+\vec{C}$ has components $D_{x}=2$ and $D_{y}=0$. a. What are the $x$ - and $y$-components of vector...
The relevance ( Relevance ) and the reliability ( Reliability ) represent two characters Key qualitative statistics of information n accountant. What What do these two mean? terms in an accounting...
A virtual memory system has a page size of 1024 bytes, six virtual pages, and five physical page frames. The page table is shown in Table Q2(d) as follows: Virtual Page Number (VPN) 0 Page Frame...
31. z = x + 2xy, determine which of (I)-(II) in Figure 12.31 are cross- sections with x fixed and which are cross-sections with y fixed. (1) (11) -2 -2+
WHAT DOES SOCIETY EXPECT FROM ORGANIZATIONS AND MANAGERS? Introduction: TOMS Shoes has a unique idea to promote corporate social responsibility. For each pair of shoes it sells, it donates a pair to...
1. A car heading east turns right at a corner. The car turns at a constant speed of 20.0 m/s. After 12 s, the car completes the turn, so that it is heading due south at 20.0 m/s. Calculate the car's...
Assuming (1) that you can buy a sterling call with strike price of $1.50 for 3 cents, (2) that you can sell a sterling put at the same strike price for 4 cents, (3) that the prevailing forward rate...
The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...
Examine and report on one of the many instances of a theory-practice debate in the field of technical communication. (See the list below for some possibilities-or locate another instance of a...
With a three-panel diagramone panel showing the money market, one showing the aggregate expenditure diagram, and one showing the AD curveshow how a decrease in the money supply shifts the AD curve...
Suppose firms become pessimistic about the future and consequently investment spending falls. With an AD and AS graph, describe the short run effects on real GDP and the price level. If the AS curve...
With an AD and AS diagram only, explain the shortrun and long-run effects of a decrease in the money supply on real GDP and the price level. Assume the economy begins at full employment.
Columbus Industries makes a product that sells for $37 a unit. The product has a $29 per unit variable cost and total fixed costs of $10,000. At budgeted sales of 1,950 units, the margin of safety...
18. Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50. The intrinsic value of your option is:
ABC Insurance Company reported the following information on its accounting statements last year: What was ABC 's expense ratio last year

At its best possible output level, a firm has total revenue of $3,500 per day and total

Question:

Step by Step Answer:

a If the firms fixed costs are 3000 per day then its variable co...View the full answer

Macroeconomics Principles and Applications

Students also viewed these Economics questions