. In the short run, assuming nothing else changes, Cathy shouldmultiple choice 1produce a lower quantity of corn per day.shut down, because the market price is above the AVC.produce a greater quantity of corn per day.produce the same quantity of corn per day.e. If the short-run price of corn falls to $1.25 per corn cob, Cathy shouldmultiple choice 2shut down, because the market price is below the AVC.produce a lower quantity of corn per day.produce the same quantity of corn per day.produce a greater quantity of corn per day.
Question
. In the short run, assuming nothing else changes, Cathy shouldmultiple choice 1produce a lower quantity of corn per day.shut down, because the market price is above the AVC.produce a greater quantity of corn per day.produce the same quantity of corn per day.e. If the short-run price of corn falls to $1.25 per corn cob, Cathy shouldmultiple choice 2shut down, because the market price is below the AVC.produce a lower quantity of corn per day.produce the same quantity of corn per day.produce a greater quantity of corn per day.
Solution
The question seems to be incomplete. However, I'll try to answer based on the information provided.
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If nothing else changes in the short run, the decision Cathy should make depends on the current market price in relation to her average variable cost (AVC). If the market price is above the AVC, she should continue production. If it's below, she should consider shutting down. The options provided don't give a clear indication of the market price, so a definitive answer can't be given.
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If the short-run price of corn falls to 1.25 is below her AVC, she should consider shutting down (multiple choice 2). If $1.25 is above her AVC, she should continue production, but the quantity would depend on her marginal cost.
Similar Questions
. If the market price of corn is $1.75 per corn cob, in the short run how much corn should Cathy produce each day to maximize profits? corn cobs per day c. What are Cathy's profits/losses per day if she produces the profit-maximizing quantity of corn in the short run (losses are expressed as a negative number)? $ d. In the short run, assuming nothing else changes, Cathy shouldmultiple choice 1produce a lower quantity of corn per day.shut down, because the market price is above the AVC.produce a greater quantity of corn per day.produce the same quantity of corn per day.e. If the short-run price of corn falls to $1.25 per corn cob, Cathy shouldmultiple choice 2produce a lower quantity of corn per day.shut down, because the market price is below the AVC.produce a greater quantity of corn per day.produce the same quantity of corn per day.
The table below shows the daily costs, rounded to $0.25, of Cathy's Corn Stand. Cathy sells her corn cobs in a perfectly competitive market. Cathy's Corn Stand's Production CostsQuantity (corn cobs) AVC (dollars) ATC (dollars) MC (dollars)20.00 2.75 4.50 2.0030.00 2.25 3.50 1.5040.00 2.00 2.75 1.2550.00 1.75 2.50 1.2560.00 1.50 2.25 1.5070.00 1.50 2.25 1.7580.00 1.50 2.25 2.2590.00 1.75 2.50 2.75 a. Draw Cathy's marginal cost (MC) curve. Instructions: Use the tool provided "MC" to plot the curve point by point (8 points total). Points for average variable and average total cost are rounded to the nearest $0.25 in the graph. Instructions: In part b, enter your answer as a whole number. In part c, round your answer to two decimal places. If you are entering a negative number include a minus sign. b. If the market price of corn is $1.75 per corn cob, in the short run how much corn should Cathy produce each day to maximize profits? corn cobs per day c. What are Cathy's profits/losses per day if she produces the profit-maximizing quantity of corn in the short run (losses are expressed as a negative number)? $ d. In the short run, assuming nothing else changes, Cathy shouldmultiple choice 1produce a lower quantity of corn per day.shut down, because the market price is above the AVC.produce a greater quantity of corn per day.produce the same quantity of corn per day.e. If the short-run price of corn falls to $1.25 per corn cob, Cathy shouldmultiple choice 2shut down, because the market price is below the AVC.produce a lower quantity of corn per day.produce the same quantity of corn per day.produce a greater quantity of corn per day.
a. Consider the statement: “Even if a firm is losing money, it may be better to stay in business in the short run.” This statement ismultiple choice 1true, if the loss is less than the fixed cost.true, if the loss is less than the variable cost.false, because it could be better to stay in business in the long run.false, because a firm should only stay in business if it is making money.b. The firm should produce in the short run as long as the pricemultiple choice 2exceeds the average fixed cost.exceeds the average variable cost.is less than the average variable cost.is less than the average fixed cost.
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utilities of the last unit of Alpha and Beta that she purchases are 40 utils and 20 utils, respectively. This indicates thatMultiple ChoiceEllie should make no change in consumption.given another dollar, Ellie should buy an additional unit of Beta.in order to maximize utility, Ellie should buy more Beta and less Alpha.in order to maximize utility, Ellie should buy more Alpha and less Beta.
Keelee buys a lot of cereal at the grocery store. What strategy could she use to save money on cereal?A.Compare price per unitB.Negotiate the priceC.Read descriptions carefullyD.Read qualified reviewsSUBMITarrow_backPREVIOUS
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