+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
should owners use market research when making decisions about starting or expanding a business POLICY MAKER 1.Government policymakers may be elected politicians or appointed
Safe Wind power recently installed 50 wind turbines at a cost of $100 million. They started operations on 30 May 2009. Calculate the depreciation under modified accelerated co
Identify the part of the business cycle that is characterized by:  The economy is at full employment.  The growth rate of aggregate demand exceeds the growth rate of aggregat
Reducing taxes increases the amount of available cash that consumers can use to purchase goods and services. The more cash consumers have, the more purchases they are likely
What is the numerical value of the multiplier? What is equilibrium real GDP without investment? What is the multiplier effect from the inclusion of investment? What is the ave
The velocity of money, V, is de?ned as the ratio of real GNP to real money holdings, V = Y/(M/P) in this chapter's notation. What is the relationship between velocity and the
Draw the world relative supply curve RS for good X. Label all the axes (relative price of good X on the vertical axis and world output of x relative to y on the horizontal a
Merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acqu