1how do you know that the firm represented in the graph

Assignment Help Microeconomics

Reference no: EM13374840

1. How do you know that the firm represented in the graph above is a purely competitive firm?

1847_What is the product price.png

2. To maximize profits, this firm will produce at what output level (one letter)?

3. Explain why this MR=MC position is the profit-maximizing position for any firm.

4. What is the product price (one letter)?

5. What is this firm's average revenue (one letter)?

6. At profit-maximizing output, what is this firm's average variable cost (one letter)?

7. At profit-maximizing output, what four letters indicate:
• Total revenue? (Remember, four letters-a rectangle.)
• Total cost?
• Total variable cost?
• Total fixed cost?
• Total economic profit?

8. If price falls below what point, this firm will not operate in the short run? (No letter needed, just an explanation.)

9. What will happen to this firm's price, output, and economic profit in the long run? Why?

10. Where will the price settle in the long run? Remember, all purely competitive firms are theoretically doomed to make only normal profit in the long run. (Again, no letter answer, just an explanation.)

11. Why is the long-run equilibrium position of a purely competitive firm productively and allocatively efficient?

Reference no: EM13374840

Questions Cloud

Question 1money demand in an economy in which no interest : question 1money demand in an economy in which no interest is paid on money is... 500 0.2y -1000ia. you know that p

Microeconomic problem1 suppose a business finds that output : microeconomic problem1. suppose a business finds that output varies according to the following schedule as it adds more

Part-1what is the difference between average total cost and : part-1what is the difference between average total cost and average variable cost?part-2michelle slatalla new york

Question 1your boss who is the general manager of the : question 1your boss who is the general manager of the pontiac rangers an adequate aa baseball team has heard that you

1how do you know that the firm represented in the graph : 1.how do you know that the firm represented in the graph above is a purely competitive firm?2.to maximize profits this

Consider the following version of the model of incentive : consider the following version of the model of incentive pay with endogenous monitoringin a principal-agent

Explain your thinking to demonstrate your understanding of : explain your thinking to demonstrate your understanding of economic terms and concepts relevant to your answer.write

Understanding how market equilibrium is maintained is : understanding how market equilibrium is maintained is essential for business managers. as a manager it is important to

Afirm has the following production function q kl where q : a firm has the following production function q kl where q output l labour measured in person hours k capital

User Account

All Pages