Profits by selling an extremely high quantity

Assignment Help Business Economics
Reference no: EM131009659

Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?

Reference no: EM131009659

Questions Cloud

Firms ability to organize and sustain a viable cartel : How does each of the following affect the firms’ ability to organize and sustain a viable cartel?
Centralized federal regulation has the advantage : Centralized federal regulation has the advantage of?
Draw marthas budget constraint-using in difference curves : Suppose that Martha’s income is $40,000 per year. She can spend it on health care visits, which cost $80 per visit, or on groceries (standing for all other goods) which cost $100 per bag of groceries. Draw Martha’s budget constraint. Using in differe..
Exports and official foreign exchanges reserves : All else being equal, what would be the predicted consequences of the change in the real exchange rate from 1997 to 2005 for china's net exports and official foreign exchanges reserves?
Profits by selling an extremely high quantity : Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
Calculate value of t that maximizes governments tax revenue : A monopolist faces a demand function x = 1/2( 11-p) where p is the price of the product and x is the quantity demanded. The monopolist has a cost function 3+2x. The government impose a tax of t per unit of output. Assuming that the monopolist maximiz..
Apply the labor market framework to your analysis : Leading up to the 2010 midterm elections, there was lively debate on whether the Bush tax cuts, enacted in 2003, should be allowed to expire for families with annual incomes over $250,000. What would be the impact of allowing income taxes on these fa..
Many firms in the bankruptcy every year : Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
Different conclusions about relative inflation : Year Price level Price level Exchange Real exchange rate For China for U.S rate 1997 100.0 100.00 0.12 0.12 1998 99.20 101.55 0.12 0.117 1999 97.81 103.77 0.12 0.113 2000 98.20 107.27 0.12 0.110 2001 98.91 110.29 0.12 0.108 2002 98.16 112.05 0.12 0.1..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the spring constant of the spring

A 0.20-kg metal sphere oscillates at the end of a vertical spring.As the spring stretches from 0.13 to 0.21 m (relative to itsunstrained length), the speed of the sphere decreases from 5.3 to4.6 m/s. What is the spring constant of the spring?

  The trans-pacific partnership

Canada is a party to the Trans-Pacific Partnership (TPP) deal reached on October 5, 2015. The TPP is a free trade agreement between Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, Vietnam an..

  Imports sweaters from peru and sells them from her home

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities.

  What are the expected sign of the relevant coefficient

Let C be total consumption expenditures of a family, and S the size of the family. Formulate an econometric model that the marginal effect of family size on consumption is a constant. What is the expected sign of the relevant coefficient? What are th..

  Elucidate a process under which the competing oligopolists

Elucidate a process under which the competing oligopolists can divide the cake so that the two consumers (who are also the producers) are protected from the downfalls of consumers in oligopolistic markets.

  Elucidate which job affords you the highest purchasing power

If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, elucidate which job affords you the highest purchasing power of the bundle of goods in the price index.

  Evolution of international trade has been bit strained

The relationship between the less- developed- countries and the developed countries in the evolution of international trade has always been a bit strained. Discuss this relationship, including policies adopted and /or advocated by each group to "help..

  Set so that each resident shares the cost evenly

If the taxes are set so that each resident shares the cost evenly (a=b=c), how so many paths will get built.

  Output is the demand for the firms product price elastic

Mark's demand curve for the company's product is: At what output is the demand for the firm's product price elastic? If the firm wants to maximize its dollar sales volume, what price should it charge?

  Construct payoff table for game-profits per firm as payoffs

Assume that the demand for chalk is = 8 -0.1Q, where is the market price and is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $2. Co..

  The sum of private savings and public savings

National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words, If private savings 'V' = 0.75S and total savin..

  Comparative advantage in producing towels

1.  In the market for a particular good, at a price of $26, the quantity demanded is 300 and the quantity supplied is 450.  Which of the following is true?

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