Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain the Shut down point?
ShutdownPoint: With MR = MC, firm attains equilibrium at point E where it produces OM amount of the output. To produce this output, firm incurs an average cost of MF whereas it earns average revenue ME. At equilibrium MF > ME, firm incurs a loss of EF per unit of output produced. Because the total revenue earned is only OPEM, whereas the total cost incurred is ORFM, firm incurs a total loss of PRFE. Loss incurred is too much for this firm to continue, as this firms' AVC curve is also above its AR = MR curves - i.e. it's unable to cover even its AVC. In the above condition, at output OM, firm's AVC, is equal to MG that is greater than AR = ME. Therefore this firm isn't even recovering its daily or running expenses so it should shut down.
Figure: Shut down point
What is economics of information
Significance of managerial economics Industrial and Business enterprises aim at earning maximum proceeds. In order to attain this objective, a managerial executive has to take
What is the meaning of demand In economics, demand has a specific meaning distinct from its ordinary usage. In common language we treat 'desire' and 'demand' as synonymously. T
To eliminate competition and thereby secure higher prices, firms producing a specific product can come together and make monopoly agreements. These are called as industrial combina
explain williamsons model of managerial discretion?
What is the difference between a movement along a demand or supply curve and a shift of one of these curves? Why is it important to distinguish between the two? What mistake migh
present a detailed discussion of the principles of managerial economics
Open Market Operations Open market operations is another traditional or quantitative weapon at the disposal of central bank to control the volume of aggregate bank credit in t
Q. Illustrate Internal Economies of Scale? Internal economies of scale are the benefits of large scale production. They are enjoyed by the firm when it increases its scale of p
Discuss the determinants of price elasticity of demand
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd