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
How has Apple positioned itself to take advantage of unique designs to attract a sufficiently large niche market to surpass the competition in the United States and China?
1. Why might federal spending on roads, waterways, or national security be less subject to direct expenditure off sets than spending on health care or education 2. What migh
Two firms face the demand equation given by P=200,000 -6(Q1 + Q2) where Q1 and Q2 are the outputs of two firms. The total cost equations for two firms are given by: TC1 = 80
Two variable inputs, labor (L) and materials (M), are utilized to produce output. Company's current level of output: CL = $10 / unit, MPL = 25 CM = $2 / unit, MPM = 4 (!) Deci
Suppose a country is in a fixed exchange rate regime. Now suppose that individuals expect that policy makers will devalue its currency. Describe the various actions that polic
Negotiate the purchase contract for the manufacturing facility - The type of entity chosen and why, your entity's name, your entity's business purpose, a hierarchy of ownersh
At the point of long-run equilibrium for a perfectly competitive firm, economic profits are zero -  The greater the price elasticity of the demand curve that the firm faces in
Immigration is a major topic of concern in today's economy. What are the possible problems and solutions for these concerns and what could happen to the U.S. labor markets i