If a firms total revenue is $20 million, its fixed costs are $12 million, and its variable

Question:

If a firm’s total revenue is $20 million, its fixed costs are $12 million, and its variable costs are $22 million, what does it do (a) in the short run and (b) in the long run?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9780077641542

11th Edition

Authors: Stephen Slavin

See More Books

Question Posted: Feb 29, 2024 07:00 AM

See More Questions

1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
True or false: One firm conclusion from this course is that wage gaps are entirely driven by differences in preferences across groups, rather than by differences in constraints or by discrimination....
Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run? Select one: a. P < MC b. P = MC < AC c. P < AVC d. P = MR e. None of the above...
Guido is calculating his personal income tax. He has the following expenses, and wants to know what he can claim on his tax return. The following expenses are all related to Guido's personal...
You have been hired as the new assistant financial controller for Autobody Corp., an auto body repair shop. Prepare journal entries for the following transactions, which occurred during August 2014....
Assume that a union has organized the faculty at the university or the college where you are a student. What impact would you expect the union to have on the faculty? Which faculty would you expect...
Prices can vary depending on many factors including the market and novelty. Etsy allows anyone to sell goods that theyve made in its online marketplace. Go to www.etsy.com to learn more about Etsy....
Mohammad Hashmi, a citizen of Pakistan, entered the United States in 2002 on a student visa. Two years later, when he applied for a job at CompuCredit, he completed an I-9 form and checked the box to...
Balance Sheet for ABC Assets Tax Basis FMV Cash 2 , 5 0 0 2 , 5 0 0 Inventory 1 , 2 0 0 1 , 5 0 0 Land 9 0 0 2 , 0 0 0 Capital Accounts A 1 , 0 0 0 2 , 0 0 0 B 1 , 0 0 0 2 , 0 0 0 C 1 , 0 0 0 2 , 0 0...
Given: Fixed cost = $500. Fill in Table 2. TABLE 2 Output 123456 Variable Cost $ 400 700 900 1,350 2,000 3,000 Total Cost AVC ATC Marginal Cost
If a fi rms total revenue is $5 billion, its fi xed costs are $3 billion, and its variable costs are $1.5 billion, what does it do (a) in the short run and (b) in the long run?
Show that the Fourier series of Equation 3.89 can be expresses as Relate the coefficients cn to the an and bn of Equation 3.90. C, cos( nwt - 4,,) F(t) a, +
Description: duff owes relatives $13,000 for college loans. find the required quarterly payment into a sinking fund if duff pays off the loan in 3 years and the interest rate is 8% per year...
1 3 , 9 5 0 ) Repairs and Maintenance ( $ 2 , 8 5 0 ) Utilities Expense ( $ 8 8 0 ) Operating Income $ 1 0 , 2 4 2 Other Income - Gain on Sale $ 3 0 0 Interest Expense ( $ 2 5 0 ) Earnings Before...
Description: The company currently has outstanding a bond with a 5.5 percent coupon rate and another bond with a 3.5 percent coupon rate. The firm has been informed by its investment banker that...
Find the equation of line joining the points (4, -3) and (-2, 7).
Calculate the work of reversible expansion of 1 mole of ideal gas at 25 degree celsius from 10 L to 20 L.
In the regression model of Exercise 3, In Exercise 3 a) What is the R2 for this regression? What does it mean? b) Why is the "Adjusted R Square" in the table different from the "R Square"? Dependent...
What is the shape of the exponential distribution?
1. Arrows up or down: At a natural monopolist s current level of output, marginal cost exceeds marginal revenue. The firm should ______ its output and _______ its price. 2. The entry of a second firm...
1. Arrows up or down: At a natural monopolist s current level of output, marginal cost exceeds marginal revenue. The firm should ______ its output and _______ its price. 2. The entry of a second firm...
1. Arrows up or down: At a natural monopolist s current level of output, marginal cost exceeds marginal revenue. The firm should ______ its output and _______ its price. 2. The entry of a second firm...
explain the concept of Time Value of Money and provide and example. In addition to your discussion, please explain the differences between Stocks and Bonds
Wildhorse Inc. has just paid a dividend of $3.80. An analyst forecasts annual dividend growth of 9 percent for the next five years; then dividends will decrease by 1 percent per year in perpetuity....
Jenny wanted to donate to her alma mater to set up a fund for student scholarships. If she would like to fund an annual scholarship in the amount of $6,000 and her donation can earn 5% interest per...

If a firms total revenue is $20 million, its fixed costs are $12 million, and its variable

Question:

Step by Step Answer:

Analyzing the firms situation Financial Performance Total Revenue TR 20 million Fixed Costs FC 12 million Variable Costs VC 22 million ProfitLoss Calc...View the full answer

Microeconomics

Students also viewed these Business questions