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




Assignment Help
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
Based on the concept of “denominator management” by famed strategists C.K. Prahalad and Gary Hamel list five ways firms can increase short term return by increasing the ‘‘R’’
Explain why it is important to plan for uncertainties and how to implement a strategy to address possible risk factors. Your response should be at least 200 words in length. Y
You have made the decision to pursue higher education. Describe the economist's view of how a decision like that is made. Using marginal analysis, make sure you evaluate the
Give a hypothetical/real world example of the MR=MC principle (Profit maximizing point). Explain what elements in example represents decreasing marginal revenue/benefit and
What is the profit-maximizing level of output and price for the monopolist? Now suppose that this rm is in a perfectly competitive industry, still facing the same marginal cos
With L on the horizontal axis and K on the vertical, show where you might be in long run equilibrium at the production of 5,000 cookies. The price of L is "w", and the price
Develop the depreciation and book value schedules using the GDS MACRS method for oil and gas drilling equipment that cost $1.2 million. A salvage value of $300,000 is estima
How can employees benefit from alternative work arrangements? Why? What are some of the possible negative outcomes for employers and/or employees regarding alternative work a