You Own Four Firms That Produce Different Products

question 43

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, make one of the following four decisions regarding operations in each firm, and explain why a particular decision is reached.
(a) continue producing the same output level
(b) shut down
(c) increase output
(d) decrease output $$\begin{array} { l c c c c c c c c } \hline & \text { P } & \text { MR } & \text { TR } & \text { Q } & \text { TC } & \text { MC } & \text { ATC } & \text { AVC } \\\text { Firm } & & & & & & & & \\\hline \text { A } & 11 & 8 & & 20 & 200 & 5 & & 9 \\\text { B } & 3 & 1 & & 100 & & 1.5 & 2.5 & 2 \\\text { C } & 4 & 2 & 200 & & & 2 & 7 & 5 \\\text { D } & 8 & 5 & & 10 & 70 & 5 & & 6 \\\hline\end{array}$$

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Definitions:

Confrontations

direct interactions or encounters between parties where disagreements or conflicts are brought to the forefront.

Reciprocal Response

A reaction or reply where both parties involved respond to each other in a similar or complementary manner.

Cancerous Tumor

An abnormal growth of cells that can invade and destroy surrounding healthy tissue, with potential to spread to other parts of the body.

Role Clarification

The process of explicitly defining the roles and responsibilities within a particular context or relationship.