Illustrate what is the marginal cost firm making

Assignment Help Business Economics

Reference no: EM1346786

Suppose the bobby pin industry is perfectly competitive. The price of a packet of bobby pins is $2.00. Pins and Needles, Inc. is a firm in this industry and is producing 1,000 packets of bobby pins per day at the point where the MC = MR. The average cost of production at this output level is $1.50 per packet.

a) Illustrate what is the marginal cost of the 1,000th packet?

b) Is this firm making an economic profit, a normal profit, or an economic loss? How much?

c) Is the firm in long-run equilibrium? Why or why not?

Reference no: EM1346786

Questions Cloud

Nashville corporation-short term and long term use : Nashville Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and long-run monthly usage of the staff hours for Operating Departments 1 and 2 follow.

Causes of delayed flight departures : Show draw a cause-and-effect diagram to organize the possible causes of delayed flight departures into the following maj categories.

What is the maximum amplitude of diving board : An insulated Thermos contains 150cm3 of hot coffee at 83°C. You put a 12g ice cube at its melting point to cool the coffee. By how many degrees has your coffee cooled once the ice has melted and equilibrium is reached? Treat the coffee as although..

Illustrate which outcome do you expect : While grading a final exam, an economics professor discovers that two students have virtually identical answers. Illustrate which outcome do you expect.

Illustrate what is the marginal cost firm making : Illustrate what is the marginal cost of the 1,000th packet. Is this firm making an economic profit, a normal profit, or an economic loss

International banking facilities : How do International banking facilities contribute to interdependence between economies & financial markets, & to global financial stability.

What is the approximate fraction of hydrogen atoms : The temperature of the surface of a certain star is 7500K. Most hydrogen atoms at the surface of star are in the electronic ground state. What is the approximate fraction of hydrogen atoms that are in the first excited state (and therefore could e..

What do you mean by the magnitude of the force : A parallel-plate capacitor is formed from two 1.0 {rm cm} times 1.0 {rm cm} electrodes spaced 2.4 {rm mm} apart. The electric field strength inside capacitor is 1.0times10^{6};{rm{N/C}}.

Determine the dividends per share : The Rago Company had the fiven stock outstanding from 2009 to 2012, Preferred stock is $100 par value, 8% cumulative and 5,000 shares authorized.

User Account

All Pages