Why might the business owner keep the business open but let

Assignment Help Microeconomics
Reference no: EM13392515

A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist do to maximize profits? b.) Why might a business owner keep their business open but let it deteriorate, rather than shut it down? Will this profitability last?

Reference no: EM13392515

Questions Cloud

By using the six sigma dmaic process make a new process : create an 8-10 slide ms powerpoint presentation with detailed speaker notes. include the followingidentify which iso
On january 1 2012 barwood corporation granted 5040 options : question 1 on january 1 2012 barwood corporation granted 5040 options to executives. each option entitles the holder to
What type of control focuses on measuring a companyrsquos : 1.what can enhance the value of web-based shopping experiences to serve as personal shopping assistants or web-site
Buttercup corporation issued 250 shares of 11 par value : question 1 buttercup corporation issued 250 shares of 11 par value common stock for 4125. prepare buttercup journal
Why might the business owner keep the business open but let : a pure monopolist determines that at the current level of output the marginal cost of production is 2 average variable
Find out which project might be implemented and explain why : review the project management email.write an email response in which you address the following pointsdetermine which
After what you have learned week with regards to costing : consider the following statement to maximise profit you need to sell your output at the highest price. after what you
What types of companies must employ the simple structure : address the following questions and also provide the name of a company example of each structure with supporting
Youre given a spreadsheet with daily sales numbers ordered : youre given a spreadsheet with daily sales numbers ordered by date from january 1st to december 31st. you have been

Reviews

Write a Review

Microeconomics Questions & Answers

  Cost-output relationships

For each of following cost-output relationships, explain the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions

  Would series of bank runs in country decrease total quantity

Would a series of bank runs in a country decrease the total quantity of M1 Wouldn't a bank run simply result in funds moving from a checking account to currency in circulation How could that movement of funds decrease the quantity of money

  Are textbooks complements or substitutes for air travel

Alexander studies away from home. While at school, he spends all his income on air travel and economics textbooks. In a diagram with air-travel as the x-axis good, as pair increases while ptext remains unchanged, Alexander's price consumption path..

  How this investment give rise to subsequent opportunistic

some products require special custom-made trucks to transport by road. if a trucking company contracts with a

  Define permanent increase in the size of the labor force

Determine whether a permanent increase in the size of the labor force and an improvement in technology, other things held constant, would lead to an increase, a decrease, or no change in long-run aggregate supply

  Are there multiple break even points

Suppose that a firm sells in a competitive market at a fixed price of $12 per unit. The firm's cost function is: C = 200 + 4Q. Determine the minimum quantity at which the can break even. Are there multiple break even points? Explain in detail.

  Explain the meaning of a four-firm concentration ratio

what is the meaning of a four-firm concentration ratio? interpret what a four-firm concentration ratio of 60 would

  Explain who is harmed by such restrictions on imports

Why does international trade occur What does it mean to run a deficit in the merchandise trade balance Distinguish between a tariff and a quota. Who benefits from and who is harmed by such restrictions on imports

  Develop a regression equation using the data you collected

Use the regression equation to focus the demand for the product you chose for the next three periods. Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitabili..

  John has his wealth of euro1000 invested in ripoffcom

john has his wealth of euro1000 invested in ripoff.com shares. there is a 50 chance that the share market crashes and

  What is the optimal strategy for the firm

If there is asymmetric information what is the optimal strategy for the workers What is the optimal strategy for the firm Is the employment contract between the firm and the workers self-enforcing If yes, why If not, which would be a self-enforcing..

  Describe the various terms in the ad curve

This is a challenging question and involves algebraically solving system of two equations given by AD abd AS curves. The equations for the curves are given through the following:

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