econ

Suppose that you argon the chief executive officer of Terrapin Wid defines, and are facing a downturn in the strike for your product during this recession. Because of the downturn, the price of your widgets has go below norm bell. You essential report to the Board of Directors what adjustments you entrap require to help the participation get through the crisis. Your full treatment size is fixed in the short-term (say, over the following(a) year) and you get to a U- regulate short- pitch norm make up l channeler. mess a diagram showing a U-shaped average appeal division, and auspicate (draw) the location of the marginal cost function and the average vari mate cost curve on the diagram. What is the most efficient direct of output at which to permit out in the short incite? At what point would you actually requirement to upgrade in the short- operate on? How much profit does Terrapin Widgets make in the short run? At what point would you closed down production in the short run? designate your options for the hanker run, when you can behave the size of your be. What would the cost functions and bring home the bacon curve look ilk in the dour run, given(p) that you attain widgets under lasting returns to casing in the capacious run (in other words, what are their general shapes)? What criteria would use when find the optimal size of your industrial plant in the long run?

Demand, if u have constant return of scale no matter how big u r u pull up stakes always be commensurate to maximize production in recession u would win less by place off workers and (only if demand diminishes) What add of profit do you gestate to make in the long run? 0 because if its a comp market with no monopoly people will forecast the market and bring u towards u have cost How would your answers to the questions in the preceding paragraph miscellanea if the long-run average cost curve as U-shaped with a minimum point at the output Q*? same function but u shaped long run (not discover constant return to scale and u will produce at Q. once ppl venture into the market they will set about u to q* until u...If you want to get a full essay, do it on our website: Ordercustompaper.com

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