Why would firm stay in business if making zero profit

Assignment Help Microeconomics
Reference no: EM13245593

a. Explain the relationship between the law of diminishing marginal returns and the shape of a firm's marginal cost curve?

b. The long-run equilibrium for a perfectly competitive industry occurs when the firms are earning economic profits of zero. Why would firm stay in business if it is making zero economic profits?

c. Should governments outlaw monopolistic competition in the interests of efficiency? Why or why not?

Reference no: EM13245593

Questions Cloud

Calculate the terminal voltage for a battery : Calculate the terminal voltage for a battery with an internal resistance of 0.650? and an emf of 8.00V when the battery is connected in series with an 98.0?? resistor
How much of total demand do the follower firms supply : TAlchem (L) is the price leader in the polyglue market. All 10 othe manufacturers (followers) (F) firms sell polyglue at the same price as Alchem
What percentage of kids aged 12 to 17 watches television : According to a recent study, kids aged 12 to 17 watched an average of 3 hours of television per day. Suppose that the standard deviation is 1 hour and that the distribution of the time watching television has a bell-shaped distribution.
What is the wavelength of the light : Electrons in a photoelectric effect experiment emerge from an aluminum surface with a max kinetic energy of 1.30 eV. What is the wavelength of the light
Why would firm stay in business if making zero profit : The long-run equilibrium for a perfectly competitive industry occurs when the firms are earning economic profits of zero. Why would firm stay in business if it is making zero economic profits
Describe how each of the 4 factors contributed to elasticity : Choose a product you have purchased in the past month from a clothing or shoe store. Describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic
Find an expression for the magnitude force f : An ion with charge q is distance r from a molecule with polarizability (alpha). Find an expression for the magnitude force F
Describe the business and explain the general pattern : Describe the business and explain the general pattern of change of the particular market model indicating how this change is likely to impact business operations.
How many molecules are left inside the chamber : A laboratory vacuum pump can reduce the pressure to 1.0 × 10^-7 Pa. If the volume of the chamber is 0.500m^3 and the temperature is 27°C

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain what are the consequences for the economy

Since food, in large measure, affects the real income of households, increasing prices will eventually push up wages and have an impact on the aggregate supply curve. Central banks were very worried about the prospects for inflation becoming gener..

  Can some macro variables that do not fluctuate like gdp

Over the business cycle, real GDP tends to increase during the expansion and decrease during the contraction. Can you name some other macro variables that fluctuate over the business cycle like GDP does?

  Question about pricing and promotion

A television station is planning the sale of promotional DVDs. It can have DVDs manufactured by one of two suppliers. Supplier A will charge the station a set-up fees of $1,200 plus $2 for each DVD.

  Determining cartels-profit maximizing outputs

Compute the profit maximizing output produced by each firm. Compute the profits earned by each firm and the cartel.

  Is the problem one of illiquidity or insolvency

Two banks have lent $20million each to a country in an Emerging Market. Bank A has total assets of $220 million and a capital to total assets ratio of 7 percent. Bank B has total assets of $350 million and a capital to total assets ratio of 6 perc..

  Discuss the health care problem of limited access

Two major areas of health care reform involve universal access and containing costs. List the specific options discussed in your text that work toward these reforms.

  Why is the supply curve positively sloped

Distinguish between a change in Supply and a change in the quantity supplied. Refer to both increases and decreases for each. Distinguish between a change in Demand and a change in the quantity demanded. Refer to both increases and decreases for.

  What decreases the supply of drugs influence the price

The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price

  What is real wage as determined by price-setting equation

Suppose that the firms markup over costs is 6%, and the wage-setting equation is W = P(1-u+z) where u is the unemployment rate and z is equal to 0.03. What is the real wage as determined by the price-setting equation? What is the natural ..

  Information that helped make a decision a well-informed one

What information did you have or obtain that helped make your decision a well-informed one.there something you didn't know beforehand.

  Give best example of a command-and-control regulation

When using the traditional command-and-control approach to environmental regulation, the government attempts to: a. make allowances for differences across industries and between firms. b. set standards that are applicable to all situations and does n..

  What are the different types of control systems

What are the different types of control systems What are some advantages and disadvantages of the various control mechanisms How does your organization use the steps of the control process

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