You Own Four Firms That Produce Different Products

question 15

Essay

You own four firms that produce different products. The following table summarizes the conditions in each firm. After calculating the missing numbers for each firm, choose a decision for each firm from among the following four decisions, and explain how you reached each particular decision.
(a) continue producing the same output level
(b) shut down
(c) increase output
(d) decrease output $$\begin{array} { | c | c | c | c | c | c | c | c | c | } \hline \text { Firm } & \text { P } & \text { MR } & \text { TR } & \text { Q } & \text { TC } & \text { MC } & \text { ATC } & \text { AVC } \\\hline \text { A } & 11 & 8 & & 20 & 200 & 5 & & 9 \\\hline \text { B } & 3 & 1 & & 100 & & 1.5 & 2.5 & 2 \\\hline \text { C } & 4 & 2 & 200 & & & 2 & 7 & 5 \\\hline \text { D } & 8 & 5 & & 10 & 70 & 5 & & 6 \\\hline\end{array}$$

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Definitions:

Helpful

Describes actions or behaviors that provide assistance or ease a problem for someone else.

Observational Learning

Education that happens from seeing how others behave and what results from those behaviors.

Aggressive

Exhibiting behavior that is assertive, forcefully competitive, or combative.

Sexually Violent Movies

Films that contain scenes of sexual violence which may impact viewers' attitudes and behavior.