ECON 312 Principles of Economics

 

Week 3

 

Week 3 Discussion A Firm’s Shut Down Decision (Graded)

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do–shut down or continue to operate? Use hypothetical numbers to explain. Information you need to provide include–state the product you are selling, the price of the product, the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total and average variable costs. Then go ahead and make your decision. Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?

 

Week 3 Assignment:

ECON 312 Week 3 Assignment; Anti-Trust Case 1250 Words

 

Week 3 Quiz Set 1

(TCO 3) Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

(TCO 3) To economists, the main difference between the short run and the long run is that

(TCO 3) Which of the following industries most closely approximates pure competition?

(TCO 3) Which of the following statements applies to a purely competitive producer?

(TCO 3) Which of the following is correct?

(TCO 3) Barriers to entering an industry

(TCO 3) The restaurant, legal assistance, and clothing industries are each illustrations of

(TCO 3) Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a monopolistic competitor?

(TCO 3) Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?

(TCO 3) If the four-firm concentration ratio for industry X is 80

(TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

(TCO 3) Identify the primary characteristics of monopolistic competition and oligopoly. Give examples of each.

 

Week 3 Quiz Set 2

(TCO 3) Economic profits are calculated by subtracting

(TCO 3) To economists, the main difference between the short run and the long run is that

(TCO 3) Economists would describe the U.S. automobile industry as

(TCO 3) A purely competitive seller is

(TCO 3) Which of the following is correct?

(TCO 3) Confronted with the same unit cost data, a monopolistic producer will charge

(TCO 3) Monopolistic competition means

(TCO 3) Product variety is likely to be greater in

(TCO 3) Which of the following is the best example of oligopoly?

(TCO 3) Concentration ratios measure the

(TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is this law considered a short-run phenomenon?

(TCO 3) Identify the primary characteristics of monopolistic competition and oligopoly. Give examples of each.