Question
A consultant on profit maximization. What do you recommend in each of the cases below for a perfectly competitive firm? In the Answer box, the
A consultant on profit maximization. What do you recommend in each of the cases below for a perfectly competitive firm? In the "Answer" box, the following options can be used more than once or not at all:
1. The firm is in the correct position.
2. The firm should increase price.
3. The firm should decrease price.
4. The firm should increase output.
5. The firm should decrease output.
6. The firm should shutdown.
Note:Fill all blanks - show work
Case | A | B | C | D | E |
P | $1.00 | $4.00 | |||
Q | 1,000 | 10,000 | 2,000 | ||
TR | $10,000 | $5,000 | $8,000 | ||
TC | $9,000 | $8,000 | |||
TFC | $1,500 | $1,000 | |||
TVC | $7,000 | ||||
ATC | $1.80 | $3.50 | At minimum level | $4.50 | |
AVC | $5.50 | $3.00 | |||
MC | $2.00 | $5.00 | $4.50 | $4.00 | |
Answer: |
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The Vanishing American Corporation Navigating The Hazards Of A New Economy
Authors: Jerry Davis, Gerald F Davis
1st Edition
1626562792, 9781626562790
