Marginal and average cost curves

Assignment Help Microeconomics
Reference no: EM13806

Question 1:

A) In a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production?  Why or why not?

B) Why do marginal and average cost curves take a "U" shape?

Question 2:

Define "Monopoly".  Is it true that a monopolist will maximize profit where Marginal Revenue equals the Average Cost of Production?  Why or why not?

Question 3:

Define Elasticity.  If you have a product where elasticity is less than one, what does that mean?  Is it good, bad for the firm?

Question 4:

Why will firms not shut down as soon as the price of their product drops below the Marginal cost?  At what point will most firms go out of business (shut-down) and why?

Reference no: EM13806

Questions Cloud

Explain assimilition and pluralism views of diversity : Explain Assimilition and Pluralism views of diversity.
Constructing the parameters of the rsa cryptosystem : The general method for constructing the parameters of the RSA cryptosystem
Write an essay on the youngest billionaire : Write an essay on the youngest billionaire
Job costing in service organizations : How is job costing in service organizations different from job costing in manufacturing environments?
Marginal and average cost curves : n a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production.
Marginal and average cost curves : n a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production.
Write a multi-threaded program : Write a multi-threaded program to solve producer and consumer problem
Implementation of classes : Implementation of classes Chart and BarChart. Class barChart chould display a simple textual representation of the data
Calculate the dc voltage : Calculate the dc voltage applied to the circuit.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Turning to a market economy

Developing countries in the "Global South" turned to socialism in the past as a means to solve their economic problems.

  Firms operating under cournot competition or cournot market

The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.

  Elasticity of demand

Price elasticity of demand, Income elasticity of demand and Cross elasticity of demand of toyota corolla car.

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Firms operating under cournot competition or cournot market

The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.

  Calculate the net present value and benefit-cost ratio

Calculate the net present value and benefit-cost ratio for four different discount rates

  Practical problems in price theory

The problem in economics in price theory deals with deriving maximum marginal utility and marginal rate of substitution and price elasticity of demand.

  Derive the marginal product functions

Describe the market growth rate for product and service.

  Simple keynesian model

Using an aggregate supply diagram and aggregate demand or model of the economy, graphically explain and discuss the short-run and long-run effects.

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

  Linear demand function

Demand estimation and forecasting and income elasticity of demand

  Determine the price of computers in a free market

Examine the factors that determine the price of computers in a free market.

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