Determines its profit maximizing level of output operating

Assignment Help Microeconomics
Reference no: EM131575058

a) The law of demand states that demand of a good increases when its price falls and its consumption decreases when the price of the good rise and this is generally caused by two effect both normal and inferioir goods. Identify and explain these two effects? Explain the difference between these two effects that affects the two goods normal and inferior good?

b) Identify two different ways whereby a firm determines its profit maximizing level of output operating in perfectly competitive market and explain why would a firm choose to continue operations and to stay in business when it does not earned economic profits but normal profits in a competitive equilibrium?

Reference no: EM131575058

Questions Cloud

Explain how does a witness interview differ : What special considerations must interviewers take into account. What are the ways in which an interviewer can assess the accuracy of a witness's statement
Describe an algorithm to decide whether a graph is bipartite : Describe an algorithm to decide whether a graph is bipartite based on the fact that a graph is bipartite if and only if it is possible to color.
Possible confounding factors and effect modifiers : Select a statistical measure you would use to describe the association (if there is one) between body mass index and asthma.
Discuss why you believe your decisions are different : Discuss why you believe your decisions are different. In your response, refer to the required readings
Determines its profit maximizing level of output operating : Identify two different ways whereby a firm determines its profit maximizing level of output operating in perfectly competitive market
What is the probability of taking a random sample : What is the probability of taking a random sample of n=45 and finding a sample proportion more extreme than the one observed in this sample?
Why is it necessary to critique research literature : Why is it necessary to critique research literature? Justify your rationale.
Difference between summarizing and critiquing an article : What is the difference between summarizing and critiquing an article? Present supportive details in your explanation.
Discuss why you believe your decisions are similar : Discuss why you believe your decisions are similar. In your response, refer to the required readings

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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