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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

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Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm Not yet answered Marked out of 6.00 Flag question

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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 Not yet answered Marked out of 6.00 Flag question Not yet answered Marked out of 6.00 Flag question

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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

Question text

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 Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run? 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 Select one: a. P < MC b. P = MC < AC c. P < AVC d. P = MR e. None of the above a. P < MC b. P = MC < AC c. P < AVC d. P = MR e. None of the above

Question 22

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Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm

Question 22

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Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm

Question text

Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Mars InC. produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should: Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm Select one: a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm a. shut down as fixed costs are not being covered. b. keep producing as profits are $50,000. c. keep producing as variable costs are being met. d. keep producing as total costs are being recovered e. More information is needed in order to determine the firm

Explanation / Answer

21. C P<AVC

22. since total revenue is 400,000 and total variable cost is 300,000

c. keep producing as variable costs are being met.

23. total revenue =1440 and total cost=1180 so profit =220

c. continue operating because it is earning an economic profit

24.a. Its demand curve is generally less elastic than in more competitive markets.

25.d. tend to realize economic profits in the short run and normal profits in the long run.

26.a. continue its efforts to differentiate its product.

27.d. the degree of product differentiation.

28.d. All of the above.

29.c. An Italian firm builds a plant in Nebraska

30.c. minimize a multinational firm's tax liabilities.

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