Consider perfectly competitive firm

Assignment Help Business Economics
Reference no: EM131173885

Consider a perfectly competitive firm that is currently producing a quantity of one hundred units. At this level of output, suppose its marginal cost is $60 and its average total cost is $60. Given a market price of $60, for this representative firm the economic profits are Zero. Is this model sustainable in the long run?

Reference no: EM131173885

Questions Cloud

Arise in the international business setting : Identify the most common ethical issues that may arise in the international business setting. Explain the root cause of these issues. Discuss how managers of international firms should address these issues.
The price elasticity of demand for labor will depend : The price elasticity of demand for labor will depend upon all but the:
Find the producer surplus at the equilibrium price : Find the equilibrium point. Find the consumer surplus at the equilibrium price. Find the producer surplus at the equilibrium price.
Characterized as noninterventionists : Monetarists are often characterized as ‘noninterventionists’ while modern Keynesians are characterized as ‘interventionists’. Why do Monetarists argue against intervention? What are the afraid of? Why do modern Keynesians argue in favor of interventi..
Consider perfectly competitive firm : Consider a perfectly competitive firm that is currently producing a quantity of one hundred units. At this level of output, suppose its marginal cost is $60 and its average total cost is $60. Given a market price of $60, for this representative firm ..
How much should stan pay for the bond : Stan Moneymaker has the opportunity to purchase a certain U.S. Treasury bond that matures in eight years and has a face value of $10,000. The bond stipulates a fixed nominal interest rate of 8% per year but interest payments are paid quarterly. Stan ..
Press release is story that will be interesting to readers : A press release is a story that will be interesting to the readers. Identify a current event that has taken place in the last six months, and calls for a press release. Then, write a press release that incorporates your knowledge of the audience and ..
What is the point cross-price elasticity : Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. What is the point cross-price elasticity of Jolt demand with respect to the Toyota price (Pt) of $55000? Wo..
Health policy and access : Considerable attention is given to the basic trends as well as research and policy issues related to monitoring and evaluating health care access. Monitoring and evaluating access allows us to (1) predict use of health services, (2) promote social ju..

Reviews

Write a Review

Business Economics Questions & Answers

  Evalute your results to the nearest hundredth of a percent

Find a 95% confidence interval for the true percent of car owners in this city who recieved a speeding ticket this year. Evalute your results to the nearest hundredth of a percent.

  Budget is the plan for obtaining and expending revenue

The annual federal budget is the plan for obtaining and expending revenue of the federal government. In a minimum of two paragraphs, describe the source(s) of government revenue and the types of expenditures in the typical federal budget.

  The total after-tax investment in the defender

A current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of 565,000. It has been depreciated as a MACRS (GDS) five-year property-class asset. The corresponding depreciation rates are: 20%, 32%..

  What price also quantity would prevail

Illustrate what price also quantity would prevail after the imposition of the tax

  Physically capable of consuming

What economic concept illustrates the fact that at an all-you-can-eat restaurant, one rarely literally eats all the food he/she is physically capable of consuming? Explain.

  Q1 explain why does production ultimately experience

q1. explain why does production ultimately experience diminishing marginal returns to labor in the short run?q2. what

  Illustrate what is the legal distinction between selling

Illustrate what is the legal distinction between selling a product and licensing it. Many of the provisions in the UCITA were first proposed as a modification to Article 2 of the UCC. Why do you think the drafters decided to propose it as a separa..

  Marginal product of capital

Beat To A Pulp, Inc. sells paper and uses paper machines and labor in production. It pays $800 per employee and $400 per paper machine. Its marginal product of labor (MPL) is 1600 reams of paper per worker and marginal product of capital (MPK) is 200..

  Write down the long-run total cost as a function

Suppose that the cost of a unit of capital is r and the price of a unit of labor is w and the level of output is y. Write down the long-run total cost as a function of w, r, and y.

  Government puts pressure on producers for heavy equipment

During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.

  What should the nominal exchange rate

Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).

  What was the cash payment

Stepping Out has inventory purchases of $2,200 during the month of June. If June 1 accounts payable were $1,700 and June 30 accounts payable were $1,900, what was the cash payment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd