Why the firm must not be maximizing its economic profits

Reference no: EM13224104

A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits. Is this argument correct?

Reference no: EM13224104

Questions Cloud

Sucrose reacts slowly with water in the presence of an acid : Sucrose, C12H22O11, reacts slowly with water in the presence of an acid to form two other sugars, glucose and fructose, both of which have the same molecular formulas, but different structures. C12H22O11 + H2O ? C6H12O6 (glucose) + C6H12O6 (fructo..

Which set of people will the overall expense of a movie : A theater that shows the same movie to large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of their budget, so that demand is more elastic)

Determine that is a first order reaction by plotting : Verify that this is a first order reaction by plotting 1n ([C2H40]/M versus time and determine the value of the rate constant.

What are the firms economic profits or losses : The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing to pay for this output is $40 per unit. If it produces this output.

Why the firm must not be maximizing its economic profits : A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits.

What is a key economic function of the california bar : Recently, a top constitutional law expert who had been licensed to practice lawn in Massachusetts and was under consideration for nomination to the California Supreme Court failed the California bar examination. In doing so, she joined a long list..

What is the total amount of output paid to labor : Suppose that the production is given by Y=A*K^0.5*L^0.5, where Y is GNP, K is capital stock and L is labor. Initially A is equal to 10. If capital is 100 and labor is 400, what is The total amount of output paid to labor

Compute the ph at each points in the titration : The pKb values for the dibasic base B are pKb1 = 2.1 and pKb2 = 7.8. Calculate the pH at each of the following points in the titration of 50.0 mL of a 0.75 M B(aq) with 0.75 M HCl(aq).

When will you review your eop : What system will you use to ensure that changes are properly posted in all copies of your EOP after it is distributed?

User Account

All Pages