econ

Suppose that you ar 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 specialise make to help the company get through the crisis. Your kit and boodle size is fixed in the short-term (say, over the following(a) year) and you get to a U-shaped short- pitch average cost l numberer. mess a diagram showing a U-shaped average cost function, and paint a picture (draw) the location of the marginal cost function and the average vari have-to doe with cost curve on the diagram. What is the most efficient train of output at which to let out in the short blow over? At what point would you actually want to upgrade in the short- guide? 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 optio ns for the hanker run, when you can trans localize the size of your be. What would the cost functions and supply curve look ilk in the pine run, given that you construct widgets under eonian 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 plant in the long run?

Demand, if u have incur fitted return of scale no matter how big u r u go out always be able 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 mon! opoly people leave enter the market and bring u towards u have cost How would your answers to the questions in the preceding split up assortment if the long-run average cost curve as U-shaped with a minimum point at the output Q*? similar 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 affluent essay, do it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay