Maximizing output for price searcher who is making zero

Assignment Help Business Economics

Reference no: EM131385581

In class is was claimed that at the wealth maximizing output for a price searcher who is making zero (economic) profits, the Average Total Cost Curve must be tangent to the Demand Curve rather than merely be equal to but bisecting the Demand (either from the bottom or top) at that output. Prove or refute that claim. (Assume that there is no price discrimination of any sort; unit prices charged to any buyer, once set, are the same regardless of number of units sold.)

Reference no: EM131385581

Questions Cloud

Macroeconomic event affected the performance of the economy : What large macroeconomic event affected the performance of the economy in the past 10 years? Explain and analyze the event using the model of aggregate demand and aggregate supply (AD-AS model).

In diagram of the equilibrium model of bank reserves : In a diagram of the equilibrium model of bank reserves, identify the discount rate, the interest rate on reserves and the federal funds rate. Make sure you label everything clearly.

Did you notice actual documentary footage being used : Movie: Citizen Kane In terms of realism, "Citizen Kane" heavily uses images that masquerade as documentary footage, when in fact they're just constructed to look like documentary. Did you notice actual documentary footage being used

Assess aspects of the oligopoly market structure : Over the last several years, the airline industry has lost billions of dollars and individual firms (with the exception of a few discount carriers) have been unable to make a profit. Assess aspects of the oligopoly market structure that may be releva..

Maximizing output for price searcher who is making zero : In class is was claimed that at the wealth maximizing output for a price searcher who is making zero (economic) profits, the Average Total Cost Curve must be tangent to the Demand Curve rather than merely be equal to but bisecting the Demand (either ..

In perfectly competitive market : In a perfectly competitive market, the process of entry and exit will end when firms face

Struggle over expansion of slavery was the key to preserving : Discuss how both northerners and southerners in the early U.S believed winning the struggle over the expansion of slavery was the key to preserving their freedoms and to preventing their domination by the other section of the nation."

Methodologies of risk assessment : What do you think of the property of transitivity in choice theory and methodologies of risk assessment. How can we improve the ways we assess risk, or think about choices we make?

Delivers in regards to risk involved : Discuss Daniel Kahneman’s Mckinsey interview, and the message he delivers in regards to the risk involved in using inside information (one of the persistent problems in decision theory – with numerous recent examples, including the Financial Crash of..

User Account

All Pages