Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you are a consultant who specializes in advising monopolies on how to maximize their profits. Five firms are currently seeking your advice, and although
- Suppose you are a consultant who specializes in advising monopolies on how to maximize their profits. Five firms are currently seeking your advice, and although the information they have supplied to you is incomplete, your expert knowledge allows you to make a definite recommendation in each case. For each firm, select one of the following recommendations about what they should do in the short run: 1) remain at the current output level, 2) increase output, 3) reduce output, 4) shut down, or 5) go back and recalculate your figures because the ones supplied cannot possibly be right.
Firm | Price | MR | R | Q | C | MC | ATC | AVC |
A | . | 9 | 44000 | 4000 | . | 9 | 11.9 | 10.74 |
B | 3.9 | 3 | . | 2000 | 7400 | 2.9 | . | 3.24 |
C | 5.9 | . | . | 10000 | . | 5.9 | 4.74 | 4.24 |
D | 35.9 | 37.9 | . | 5000 | . | 27.9 | 35.9 | . |
E | 35 | . | 3990 | 1000 | 3300 | . | at ATCmin | 23.94 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started