Q: In the long run
A: In the long run firms get more power to change inputs.
Q: for the profit of a firm to be maximum?
A: To find : First order condition.
Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…
A: Economic profit is defined as difference between revenue that is received from the sale of a good or…
Q: What is the goal of a firm?
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: in short run even if it makes negative profit. Use well labeled
A: A competitive firm may incur losses in the short run(SR) as there are some fixed cost(FC) in the…
Q: In the long run, fixed costs are
A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…
Q: What happens to the value of resources when losses are present? If a firm making losses goes out of…
A: The value of resources decreases when the firms make losses as it would mean that the revenue earned…
Q: explain why a firm might want to produce its good even after diminishing marginal returns have set…
A: The firm may wish to continue operating and manufacturing products even after decreasing marginal…
Q: Do entry and exit occur in the short run, the long run, both, or neither?
A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…
Q: What two lines determine whether a firm is making positive or negative or zero profits?
A: Introduction The perfect competitive firm only needs to decide on one thing: how much to make. To…
Q: Why can't firms enter the market in the short-run?
A: There are various types of market structures which have different characteristics of the number of…
Q: What are the determinants of the relationship between economies of scale and market structure.
A: We are going to discuss the definition of economies of scale and market structure to answer this…
Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…
A: In a market with perfect competition, every manufacturer offers the same products or services. There…
Q: Soft drink industry has been historically profitable why? compare the economies of the concentrate…
A: Soft drink Industries are profitable because:- These industries needed lower investments. This can…
Q: What is the relationship between economies of scale and the level of market competition?
A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…
Q: What quantity should the firm produce to maximize profits? 400 units BO 800 units CO 600 units 200…
A: The Condition of Profit maximization in a monopoly Market is where the Marginal cost is equal to the…
Q: Refer to the figure below. If the firm is producing the level of output that maximizes profit, its…
A: Answer: To find= total variable cost at the equilibrium. Equilibrium is a point where Marginal cost…
Q: If you are a manager in a highly competitive business such where should you put your most effort to…
A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…
Q: How much should a firm sell of a particular product in order to maximize profit? What factor does it…
A: A firm should maximize profits and bring in the output level, where there would equilibrium point…
Q: Some producers do not stop their production when they face loss in their production. Why?
A: Shut-down decision signifies a short-run decision taken where a firm decides whether to operate or…
Q: What are the options available to a firm when the market demand exceeds capacity?
A: Here's a set of features that assist companies in proactively addressing excess demand and…
Q: What type of organization is appropriate in the competitive business environment?Please explain with…
A: Competitive business environment:- A competitive environment can be explained as a framework…
Q: what tools and techniques are available to improve a firm's profits?
A: There are many tools and techniques available which is used by the firm to improve profit.Following…
Q: MC ATC P = MR = AR
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Evaluate the view that the main goal of firms will always be profit maximization
A: The profit is the excess revenue made by the firms after deducting the total cost of production from…
Q: Under what conditions would a firm decide to shut down in the short run but remain invested in the…
A: In a market, a firm faces different situations in short-run and long-run due to which it makes…
Q: Productive efficiency means output (production) is produced in the long run at
A: A perfectly competitive market is the type of market structure in which several buyers and sellers…
Q: When will a business shut-down in the short-run?
A: Short-run: - it is a short time period in which some factors of production are variable and some are…
Q: According to the above Table. What is the profit maximising level of production for the competitive…
A: To solve this question you have to calculate marginal cost first.
Q: In the long-run equilibrium of a competitive market with identical firms, what are the relationships…
A: please find the answer below.
Q: To compute Economic Profits, which costs are used? Illustrate
A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…
Q: What are transaction costs? How do transaction costs affect the boundaries of a firm?
A: The cost incurred during the process of buying and selling goods and services is referred to as…
Q: How is long run equilibrium achieved
A: The firms produce goods and services using different inputs and result in the maximisation of the…
Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
A: Answer - In the long run where the every input can vary and as in the long run where firms can make…
Q: Using the tools of economic analysis that you learned, analyze the behavior of the enterprise…
A: Introduction Perfect competition is a market where large no. of firms producing homogeneous products…
Q: Mario owns a wood-fired pizza shop which imitates traditional Italian methods. She uses a unique…
A: A firm maximizes profit by producing at level of output where MR = MC. Total Profit = Total Revenue…
Q: Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing…
A: Here, Lisette being the owner of the bakery shop experiences constant returns to scale.
Q: The correct answer to whether it should be produced is that the firm should produce in the short…
A: The decision of whether a good should be produced further depends on price and average variable…
Q: What do you mean by the equilibrium of a firm?
A: According to the given question In Economics the firm is basically a central institution which helps…
Q: When we know that the firms must be producing at the minimum point of the average cost curve and so…
A: To find : When will be productive efficiency.
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- SETTINGS Cost Structure Low Cost 200 175 150 125 100 75 50 25 0 MC ATC AVC MR D 20 20 40 60 80 100 120 140 160 180 Quantity (units per month) abcdefghijklmno Quantity 10 Quantity 60 Reset PROFIT CALCULATIONS Market Price (P) $125.00 High Cost Marginal Revenue (MR) $50.00 Marginal Cost (MC) $55.00 Revenue $7,500.00 120 Costs $5,066.67 Profit $2,433.33 Instructions: Make sure the Interactive is set to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background. With the Cost Structure (in the settings section) set to "a" a. What is the profit maximizing quantity? 60 units b. What is the maximum profit that can be earned? $ 2100 With the Cost Structure (in the settings section) set to "e" c. What is the profit maximizing quantity? units d. What is the maximum profit that can be earned? $ Let the Cost Structure remain at "e" e. If the firm decides to produce 80 units (where the average total cost equals demand…Typed please and asap Please provide me a quality solution for up vote show all steps and calculations if needed show then and take care of plagiarism alsoNeeded in 20 min
- Fill the Table Total Total Fixed Variable Total Costs Costs Total Average Total Costs Costs $100 $140 $165 $210 $295 $425 $625 Product (TFC) (TVC) $50 $50 $50 $90 $50 $115 $50 $160 $50 $245 $50 $375 $50 $575 1 4 9. Total Total Fixed Variable Total Marginal Total Costs Costs Costs Costs Product (TFC) $50 (TVC) $0 |(TC) $50 (MC) na 1 $50 $50 $50 $50 $50 $100 2 $90 $140 $115 $165 4 $160 $210 $50 $50 $50 $295 $425 $245 6. $375 7 $575 $62 LolcolN 567e The following Markups are received at various steps along the chain of distribution for a jar of pasta sauce that sells at a retail price of $5.00. What does it cost the manufacturer to produce a jar of pasta sauce? Format: $X.XX Distribution Stage Manufacturer Distributor Wholesaler Retailer Markups 50% 50% 33% 40%Typed plz My feedback depends on how good quality solution will I get