In different competitive market

Assignment Help Business Economics

Reference no: EM131167311

In a different competitive market, the market-determined price is $80. For a firm currently producing 1,000 units of output, short-run marginal cost is $100, average total cost is $100, and average variable cost is $75. Is this firm making the profit-maximizing decision? Why or why not? If not, what should the firm do? Will this increase or decrease the firm’s profit margin (i.e. the firm’s profit per unit)?

Reference no: EM131167311

Questions Cloud

Identify the weaknesses or gaps found in the literature : Discuss which studies were stronger. Identify the weaknesses or gaps found in the literature. Discuss the academic and practical significance of prior research.

How much total profit is the firm making : In a competitive industry, the market-determined price is $3. A firm in this market is producing 36,000 units of output, and, at this output level, the firm’s average total cost reaches its minimum value of $3. How much total profit is the firm makin..

What items can be deleted to improve reliability : What item/s can be deleted to improve reliability - What items should never be deleted to maintain reliability of data?

Describe the difference between the short run and long run : Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run

In different competitive market : In a different competitive market, the market-determined price is $80. For a firm currently producing 1,000 units of output, short-run marginal cost is $100, average total cost is $100, and average variable cost is $75. Is this firm making the profit..

Develop a decision tree to maximize ventrons emv : Develop a decision tree to maximize Ventron's EMV.- What value of side benefits would make Ventron indifferent between the two alternatives?

Assembles electric toasters using labor and robots : Consider a company that assembles electric toasters using labor and robots. Suppose that in 1950, robots were so crude that they were useless in the assembly of toasters, so that toasters had to be assembled entirely by hand. Now suppose that as a re..

What is the effect of a marginal change : Show that the firm's short-run demand for labor as a function of the fixed level of capital K > 0 satisfies L(K) = 25K. What is the effect of a marginal change in K on the profit of the firm

Is this firm making the profit-maximizing decision : In yet another competitive industry, the market-determined price is $10. For a firm currently producing 250 units of output, short-run marginal cost is $7, average total cost is $39, and the average variable cost is $9. This firm incurs total quasi-f..

User Account

All Pages