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.


Verified Expert

Preview Container content



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.


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

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Suppose you could buy a three year bond for $2000 that had a face value of $1000 and paid a coupon rate of 10%. What rate of return would you earn if you bought this bond?
The demand for a specific brand of toothpaste and the demand for toothpaste in general b. The demand for gasoline in the short run and the demand for gasoline in the long run
Explain the difference between a progressive and a regressive tax. If the average property tax on rental residential structures in the nation goes up, do you expect the resu
Given the supply condition in (d), suppose the shift in policy causes health care demand to shift down by 200 at every price. What is the new equilibrium price and quantity?
What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling
Evaluate the validity of using GDP as a measure of economic output. Explain how the consumer price index and GDP work together to measure price index change from year to year.
consider this topic and converse with your fellow classmates about choice, opportunity cost, and comparative advantage with regards to personal brand in social networking si
where X is his consumption of CDs with a price of $1 and Y is his consumption of movie videos, with a rental price of $2.He plans to spend $41 on both forms of entertainment.