Determine profit maximizing level of output

Reference no: EM1370039

1- Which of the following conditions descriptive a perfectly competitive market?
- Many barriers to entry
- Firms are price takers
-The number of firms is large
- Firms' products are differentiated
- There is complete information
- Firms are profit maximizers

2- Graph marginal costs from the table below and answer the following questions:

OUTPUT MARGINAL COSTS
1 15
2 12
3 20
4 27
5 34
6 40
7 47
a) The firm can sell a helmet for $34 and the firm is producing 6 helmets. Is it maximizing profit ? Why or why not?

b) The firm can sell a helmet for $34 and the firm is producing 4 helmets. Is it maximizing profit ? Why or why not?

c) The firm can sell a helmet for $34 . What is the profit- maximizing level of output?

3- Why doesn't a perfectly competitive firm yield economic profit in the long-run?

Reference no: EM1370039

Questions Cloud

Calculate average fixed cost and average variable cost : Suppose your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs;

Write program using c language to find page fault : Write program using c language to find page fault for individual processes, group of processes and system as whole using following system call int sys_pgfltstats(pid_t pid,int flag,pf_info_struct *info).

Profit maximizing price level : Your corporation sells its product online and in stores. Your marginal cost $30 is the same in both markets. The demand and marginal revenue curves in two markets are different however.

Describe the laws that may be applicable to fact pattern : Describe the laws that may be applicable to this fact pattern and Are the dates important and Is Joel's age a consideration under the law

Determine profit maximizing level of output : Which of the following situation descriptive a perfectly competitive market. Graph marginal costs from table below and answer the following questions:

Create pdm-cpm diagram for play : Given following information about staging community play on Independence day. Create the PDM / CPM diagram. Find out earliest completion time for play and the critical path.

Determine optimal output for the production division : The Xerxes Firm is composed of a marketing division and a production division. The marketing division packages and distributes a plastic product made by the production division.

Economics production cost : Distinguish between explicit and implicit costs, giving examples of each. Differentiate between accounting profit, normal profit and economic profit.

Make case analysis for jamba juice company : Have to prepare a Case Analysis for Jamba Juice Company and Address each of the Case Study Questions in detail. Answer the questions by demonstrating the application of the concepts

User Account

All Pages