Explain why a firm would not want to produce a quantity

Assignment Help Microeconomics
Reference no: EM131167049

1. Explain why it makes sense for a company not to produce more units than the quantity for which marginal cost is equal to the price.

2. Conversely, explain why it makes sense for a company not to produce less units than the quantity for which marginal cost is equal to the price.

3. Thirdly, explain why a firm would not want to produce a quantity for which the price is below the average cost (at least not for very long).

Reference no: EM131167049

Questions Cloud

Describe an algorithm to find the counterfeit coin : Describe an algorithm to find the counterfeit coin and determine whether it is lighter or heavier using this number of weighings.
Different course names and meeting days : Write an application that stores at least four different course names and meeting days and times in a two-dimensional array. Allow the user to enter a course name (such as "CS 110") and display the day of the week and time that the course is held ..
What is the probability that x is at least 20 : What is the probability X is exactly 5? -  What is the probability that X is no more than 10?-  What is the probability that X is at least 20?
Explain what trends do you see in the data sets : What are 2-3 relationships between the economic concern you selected and that specific country's economy? What trends do you see in the data sets? Support your assertions of the trends with statistical evidence.
Explain why a firm would not want to produce a quantity : Thirdly, explain why a firm would not want to produce a quantity for which the price is below the average cost (at least not for very long)
How well suited are you to your current employment : Discuss and reflect on your current or future employment.( I'M business management major). What are your career plans? How well suited are you to your current employment?
Find the largest element of the list using tournament sort : determine the number of comparisons used by the tournament sort to find the largest element of the list using the tournament sort
Pros and cons of moving to raid : Right now RAID 5 is arguably the most popular level used in the business environment. However, there is a push from some sectors to move to RAID 6. Is this a valid position? What are the pros and cons of moving to RAID 6 versus staying with RAID 5..
Prepare a human service report : Prepare a Human Service Assessment Report - Analyze the interpersonal, political, and ethical considerations of interacting with decision makers and stakeholders who may have conflicting priorities and determine strategies for reconciling those pr..

Reviews

Write a Review

Microeconomics Questions & Answers

  A policy of maintaining a fixed interest

A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is

  A monopolist firm serves 6 consumers

A monopolist firm serves 6 consumers. Each of the consumers only buys one unit of the good. 2 consumers buy one unit if the price is lower or equal than $100 and the other 4 consumers buy one unit if the price is lower or equal than $10. The firm's c..

  What is the expected effect of the merger

Effects of Collusion or Merger - In the three bidder auction, Presume that bidders two and three collude or merge. What is the expected effect of the merger?

  Recognize and explain the four basic phases of the

write a 1050- to 1400-word paper based on the organization your team selected for your benefits and drivers

  You just won the irish lottery you bought a ticket while

you just won the irish lottery you bought a ticket while you were on vacation in ireland and you just won a 1 million

  A primary determinant of market structure

A primary determinant of market structure is the number of producers in a market.

  A monopolistic competitive industry

1) Explain why it is sometimes said that, in the long run, a monopolistic competitive industry has too many firms producing too many products.

  Impacts of federal reserve on money stock

Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new..

  The world of videos operates a retail store that rents

the world of videos operates a retail store that rents movie videos. for each of the last 10 years world of videos has

  Why does this situation violate transitivity

A consumer likes sugar in her coffe, but she simply cannot taste the difference between a cup of coffee with n grams of sugar in it and a cup of coffee with n+1 grams. Suppose a teaspoon of sugar is 6 grams, and suppose she takes her coffee with one ..

  Product experiences a larger change in price

Which product experiences a larger change in price and which product experiences a larger change in quantity

  Graph gdp and one other economic statistic

Graph GDP and one other economic statistic for at least fifteen periods (could be quarterly data or annual data). Superimpose on your graph data from another economic statistic for the same periods.

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