Output in short run, Microeconomics

Assignment Help:

Selecting Output in Short Run

* We will combine production and cost analysis with demand to determine output and profitability.

A Competitive Firm Making Positive Profit

760_output in short run.png
1234_output in short run1.png

Selecting Output in Short Run

* Production Decisions' summary

- Profit can be maximized when MC = MR

- If P > ATC firm is making profits.

- If AVC < P < ATC firm should generate at a loss.

- If P < AVC < ATC firm should shut-down.

The Short Run Output of Aluminum Smelting Plant

2032_output in short run2.png


Related Discussions:- Output in short run

International economics, how has the haberlers theory of opportunity cost ...

how has the haberlers theory of opportunity cost an improvement over the classical theory of trade

Critique of economic reforms, CRITIQUE OF ECONOMIC REFORMS: The critiq...

CRITIQUE OF ECONOMIC REFORMS: The critique of economic reforms should consider the actual growth rate achieved, its impact on employment and poverty reduction, its impact on l

Explain the phrase price rationing means, Explain what the phrase “price ra...

Explain what the phrase “price rationing” means. Price rationing is the method by which the market system assigns goods and services to consumers while quantity demanded exceeds

Find the elasticity of demand for a quantity, The demand curve for gasoline...

The demand curve for gasoline is P = 200 - 10Q.   a. Find the elasticity of demand for a quantity of 8.  Does this number imply that quantity demanded is sensitive to price chan

Theory, Explainbainlimitpricetheory

Explainbainlimitpricetheory

Monopolistic compitition, importance of monopolistc competition in Indian m...

importance of monopolistc competition in Indian market.

Stock market, Stock Market: A place where shares of joint stock corporation...

Stock Market: A place where shares of joint stock corporations are sold andbought. Most modern stock markets no longer have a physical presencehowever rather connected computer net

Organization becoming too large to effectively manage, Economies of scale a...

Economies of scale are advantages obtained from a company becoming large and diseconomies of scale are additional costs inflicted because a firm has become very large.  The causes

Point elasticity of demand, Point Elasticity of Demand - For large pric...

Point Elasticity of Demand - For large price changes (such as 20%), value of elasticity will depend upon where price and quantity lies on demand curve. - Point elasticity me

Explain the relationship between money supply and inflation, Problem 1: ...

Problem 1: a. Describe the term ‘inflation' and explain the relationship between money supply and inflation. b. Describe the conditions and processes that are associated wi

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