Ask Question
BusinessBusiness
25 November, 08:22

A competitive firm maximizes profit at an output level of 500 units, market price is $36.00, and ATC is $36.95. At what range of AVC values for an output level of 500 would the firm choose not to shut down in the short run?

+4
Answers (1)
  1. 25 November, 09:15
    0
    range of average variable cost values < $36.00

    Explanation:

    given data

    maximizes profit output level = 500 units

    market price = $36.00

    ATC = $36.95

    solution

    as here firm will continue to produce as long as total revenue cover

    total variable costs or price per unit is less than or equal to the average variable cost (AVC)

    (AR = AVC)

    so range of average variable cost values < $36.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A competitive firm maximizes profit at an output level of 500 units, market price is $36.00, and ATC is $36.95. At what range of AVC values ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Human services management includes grant writers, executive directors, program directors, and. budget writers support staff disaster scene directors development directors
Answers (1)
If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200. a. TRUE b. FALSE
Answers (1)
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement.
Answers (1)
A smaller company with 75 employees wishes to establish a retirement plan. Some of the employees are highly paid, but most are part-time low wage earners.
Answers (1)
If you have a credit card limit of $1,000, you should never carry a balance of more than $800 T/F
Answers (1)
New Questions in Business
What impact will a spike in wages cause to the labor demand curve?
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)
involves matching the candidate's intellectual and physical skills to those of the job being filled. a. Person-organization fit b. Cognitive analytics c. Ability-job fit d. Personality-ability fit e. Personality-job fit
Answers (1)
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with five years to maturity has a coupon rate of 6%. The yield to maturity (YTM) of the bond is 11.00%.
Answers (2)
The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock.
Answers (1)
Home » Business » A competitive firm maximizes profit at an output level of 500 units, market price is $36.00, and ATC is $36.95. At what range of AVC values for an output level of 500 would the firm choose not to shut down in the short run?
Sign Up Forgot Password?