Corporations price and output in the short run, Microeconomics

Assignment Help:

Consider that the government tells a large monopolistic firm that maximizes profits that it has to pay a fee to the Reelect the President Committee same to one third of its total profits if it wishes to stay in business. What is more likely to happen to the corporation's price and output in the short run as a result of having to pay this "expense of doing business"?

ANSWER: Nothing could happen to price or to output. A fixed cost does not affect marginal cost.


Related Discussions:- Corporations price and output in the short run

Paramagnetism, chemistry assignments ,  Some normally nonmagnetic substance...

chemistry assignments ,  Some normally nonmagnetic substances are attracted by a magnetic field and studies of these "paramagnetic" substances give information about the number of

Describe the importance of opportunity cost to a society, Problem: (a) ...

Problem: (a) "Economics is the study of how society decides what, how and for whom to produce". Describe the importance of opportunity cost to a society. (b) Distinguish bet

Production with two variable inputs, Production with Two Variable Inputs ...

Production with Two Variable Inputs *  There is relationship between productivity and production. *  Long run production K& L are variable. *  Isoquants analyze and compa

Elasticities and secondary axis graphs, Create a chart with a secondary ver...

Create a chart with a secondary vertical axis to plot related data series with different scales. Use the Combination Chart Fashion worksheet to create and format a combination c

What is black economy, Defining black economy, If you pay your cleaner or ...

Defining black economy, If you pay your cleaner or builder in cash or for some reason neglect to tell the taxman which you were paid for a service rendered, you participate in the

Describe the change in returns to scale & factor proportion, Before explain...

Before explaining returns to scale it will be instructive to make clear the distinction between change in the scale and changes in factor proportions. The difference between the ch

Wage labour, Wage Labour: A form of work in that employees perform labour f...

Wage Labour: A form of work in that employees perform labour for others, under their direction, in return for salaries orwages. Employer controls and owns the product of the labour

Formal and informal systems - mrp system, Formal and Informal systems  - M...

Formal and Informal systems  - MRP System Most production systems are full of 'pushes' and 'pulls'. The formal system issues orders, ie 'pushes'. The informal system tries to

Black or underground or illegal economy, Black or underground or illegal ec...

Black or underground or illegal economy: Black or underground or illegal economy has to be conceptualised as an integral and growing part of a variety of economies which emerg

Economic profit in a monopoly 2006 ap exam, is it just assumed that a monop...

is it just assumed that a monopoly graph is showing economic profit instead of accounting profit

Write Your Message!

Captcha
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