+1-415-670-9189
info@expertsmind.com
Will the firm realize profit or loss and why
Course:- Microeconomics
Reference No.:- EM13825710




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

- You are given the following curves that represent a firm operating in pure competitive industry:

1406_Firm operating in pure competitive industry.png

1. Label the above four curves?

2. Determine graphically the units produced when the firm maximizes its profits.

3. Will the firm realize profit or loss and why?

4. Will the firm continue to produce or shut down and why?

5. Determine graphically the firm''s profit or loss graphically.

6. Determine graphically the firm''s average fixed cost (AFC) when it maximizes its profit?

1326_Firm operating in pure competitive industry1.png

A) The firm should maintain output at 600 units, because at this output level, marginal revenue is greater than marginal cost, marginal cost is minimized, and price is the highest.

B) The firm should increase the level of output because at 600 units, marginal revenue is greater than marginal cost.

C) The firm should increase output because at 600 units price is above marginal cost.

D) The firm should increase the level of output until it reaches the minimum average cost.

Answered:-

Verified Expert


Preview Container content

About:

Repeater:

In simple terms, anything which repeats itself is a repeater. In terms of computer networks, a repeater is a network device which regenerates the incoming signal [1]. The data flows in the network in the form of signals. While transmission, after travelling some distance the signal starts distorted.

At those points repeaters are placed to regenerate the signal for further transmission. Repeaters are used in a network to increase the coverage area of the network. Repeater operates at physical layer of OSI protocol stack.

Switch:

The Switches are used to create a network. It connects the computers in a local area network together and allows communicating with each other within. The switches operate at data link layer and network layer of OSI protocol model and channels incoming data from multiple input ports to a specific output port by keeping record of MAC address of the devices connected to it, so that the data can be intended to its correct destination.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Design an economic policy solution to the problem. Analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders.
The Community of Paci?c States (CPS) operates a Taylor rule of interest rates = 5% + A X (output gap) + B X (in?ation - in?ation target) In?ation is determined by a Phillips
Write the expression for this firm's Total Revenue and write the expression for this firm's marginal revenue - what is the profit maximizing (or loss minimizing) level of outp
The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the pri
For a closed economy, gdp is $11 trillion, consumption is $7 trillion, taxes are $3 trillion and the government runs a surplus of $1 trillion. What are private savings and nat
Based on this conclusion and discussing the source and derivation of income principles, state which amounts would be included in his assessable income for the year. You do n
The world price of wine is below the price that would prevail in the United States in the absence of trade. Assuming that American imports of wine are a small part of total wo
When an excise tax is imposed on a commodity in order to raise revenue for the government or in in order to raise the consumption of the good, then why are these goals in co