Consider the following data: equilibrium price = $10, quantity of output produced = 100 units, average total cost = $13, and average variable cost = $7. What will the firm do and why? Group of answer choices Shut down in the short run, because it is taking a loss of $200.

The Firm should Continue to Operate

Explanation:

A firm should continue to operate in the market if a Firms generates enough total revenue to at least cover its total variable costs. This is known as the shut down rule, when a firm's total revenue is less than total variable costs or Selling Price is less than the Average Variable costs per unit the firm must shut down is firm is operating at a loss and producing more units will only increase losses.

Price = $10

output = 100

average total costs = 13

average variable costs = $7

Total Revenue = $10 x 100 = $1000

Total costs = $13 x 100 = $1300

The firm's Price of $10 is greater than average variable costs of $7. The firm is taking a loss of $300 (1000 - 1300). The firm should continue to operate, even though the firm is taking a loss of $300.  The firm's revenue is enough to cover variable costs.

The firm will only shut down in the short run if the Price is less the average Variable costs and in this case the price is higher than Average variable costs so the firm should definitely continue to operate

because she sucked. : )

(but so does trump, don't @ me)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know