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Profits and Your Franchise Firm
We have explored the costs of production which have a direct impact on the profit of your firm. Write a 2- to 3-page essay that addresses the following questions.
Give an example of indivisible inputs for your firm.
Discuss the characteristics of a perfectly competitive firm. Does your franchise firm share any of these same traits? Explain.
In the long run, what happens to economic profits (assuming your firm is competitive)? Explain.
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Compute the elasticities for each independent variable and Determine the implications for each of the computed elasticities for the business in terms of short-term and long-term pricing strategies. Provide a rationale in which you cite your results..
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The Great Southern Paper Company has the following marginal cost schedule for produc- ing pulp: ?Quantity 1 2 3 4 5
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