Will the firm likely continue operating in the long run

Assignment Help Microeconomics

Reference no: EM13201529

Consider the following graph of a monopolistically competitive firm selling DVDs

A. How many DVDs should be sold to rent per day to maximize profit? Briefly explain your answer.

B. What is the economic profit for this firm operating where economic profit is maximized?

C. Will this firm likely continue operating in the long run? Briefly explain your answer.

D. Explain the impact on this firm of other firms leaving the market. Would this action alter your decision made in part C?

Reference no: EM13201529

Questions Cloud

Calculate the profit-maximizing p-q and total profit : Suppose the demand for a firm's product is estimated to be P = 200 - 2Q from which it can be shown that TR = PQ = 200Q - 2Q2 . The cost of producing and selling the product is known to be TC = 625 + 50Q + 3Q2 .

More violent during a sporting event : What stage of the scienctific method would someone be at if they make a prediction that drinking alcohol will make people more violent during a sporting event?

Frequent episodes of extreme depression : Mr. Andrews suffers from frequent episodes of extreme depression. When a friend suggests that he might be helped by drug therapy, Mr. Andrews responds, “Drugs are just a crutch for people who lack self-discipline and who want to hide from their probl..

How much was given to charities in general : About 35.9% of all charitable contributions are made to religious organizations. In 2003, about $86.4 billion was given to religious organizations. How much was given to charities in general?

Will the firm likely continue operating in the long run : Consider the following graph of a monopolistically competitive firm selling DVDs. A. How many DVDs should be sold to rent per day to maximize profit. B. What is the economic profit for this firm operating where economic profit is maximized.

Diagnostic labels-destructively antidemocratic : A newspaper editorialist argues that the use of DSM-IV diagnostic labels is destructively antidemocratic, because it enables an elite corps of mental health professionals to subtly control the values and life-styles of the rest of society

What was the percent of sugar in the solution : what was the percent of sugar in the solution?

Compute the amount of work in joules required to empty : Find the amount of work in joules required to empty the trough by pumping the water over the top. (Note: Use as the acceleration due to gravity.)

Spends a lot of time stroking-cuddling and rocking her son : Mrs. Kaufman spends a lot of time stroking, cuddling, and rocking her infant son and seems to be highly aware of the baby's actions and needs. Mr. Kaufman worries that his wife's interactions with the baby may eventually lead the child to

User Account

All Pages