When is production profitable according to price-taking firm, Managerial Economics

Assignment Help:

When is production profitable according to price-taking firm at profit, break-even or loss?

Production profitable at profit, break-even or loss:

a. When TR > TC, in that case the firm is profitable.

When market price exceeds minimum average total cost, then the producer is profitable.

b. When TR = TC, then the firm breaks even.

When the market price equals minimum average total cost, in that case the producer breaks even.

The break-even price of certain a price-taking firm is the market price at that this earns zero profits.

c. When TR < TC, in that case the firm incurs a loss.

When market price is less than minimum average total cost, then the producer is unprofitable.


Related Discussions:- When is production profitable according to price-taking firm

Inflation is not possible under the gold standard, "Inflation is not possib...

"Inflation is not possible under the gold standard." Is this declaration true, false, or uncertain? Describe your answer

Advantages of perfect market, Advantages of Perfect Market It achi...

Advantages of Perfect Market It achieves, subject to certain conditions, an allocation of resources which is: socially optimal" or "economically efficient" or "pareto effi

Show the empirical analysis, Q. Show the Empirical analysis? Empirical ...

Q. Show the Empirical analysis? Empirical analysis aimed at investigating nature of scale economies, degree of input complementarily orsubstitutability, or the nature and exten

Types of production function, Q. Types of production function? Producti...

Q. Types of production function? Production function is of two different forms:  The variable proportion production function The fixed proportion production functio

fiscal policy, What do you mean by the fiscal policy? What are the instrum...

What do you mean by the fiscal policy? What are the instruments of fiscal policy? Briefly comment on India's fiscal policy.

Income elasticity of demand, demand function is q=4850 - 5p(1) + 1.5p(2) + ...

demand function is q=4850 - 5p(1) + 1.5p(2) + 0.1 Y WHEN Y=10000 p(1)=200 p(2)= 100 find income elasticity of demand for p(1)

Elasticity of demand, A baseball team is trying to predict ticket sales for...

A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. The market has a population of 2 million persons. The team s

Individual firm and market supply curves, Individual firm and market supply...

Individual firm and market supply curves The quantities and prices in the supply schedule can be plotted on a graph. Such a graph is called the firm supply curve. A fir

Calculate the marginal costs and output ranges, Assume that input prices ar...

Assume that input prices are constant at r = 1, w = 1, with technology which consists of 5 processes having the following properties: Process Inputs Capital (machine hours)

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