econ

Suppose that you argon the CEO of Terrapin Widgets, and are facing a downturn in the demand for your product during this recession. Because of the downturn, the price of your widgets has go below norm bell. You must report to the Board of Directors what adjustments you desexualise make to help the company get through the crisis. Your deeds size is fixed in the short-term (say, over the following(a) year) and you bring on a U-shaped short- pitch average cost l increaseer. mess a diagram showing a U-shaped average cost function, and advise (draw) the location of the marginal cost function and the average vari partake cost curve on the diagram. What is the most efficient take aim of output at which to let out in the short rill? At what point would you actually want to upgrade in the short- fiddle? How much profit does Terrapin Widgets make in the short run? At what point would you shut down production in the short run? Indicate your options for the hanker ru n, when you can thoroughfare the size of your be. What would the cost functions and supply curve look the likes of in the coherent run, given that you elicit widgets under double-dyed(a) returns to scale in the long run (in other words, what are their general shapes)? What criteria would use when determining the optimal size of your arrange in the long run?

Demand, if u have changeless return of scale no matter how big u r u go awaying always be equal to(p) to maximize production in recession u would produce less by laying off workers and (only if demand diminishes) What add of profit do you expect to make in the long run? 0 because if its a comp market with no mo nopoly people will enter the market and bri! ng u towards u have cost How would your answers to the questions in the preceding carve up assortment if the long-run average cost curve as U-shaped with a minimum point at the output Q*? aforementioned(prenominal) function but u shaped long run (not acquire constant return to scale and u will produce at Q. once ppl enter into the market they will drive u to q* until u...If you want to get a overflowing essay, do it on our website: OrderEssay.net

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