Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain the Shut down point?
ShutdownPoint: With MR = MC, firm attains equilibrium at point E where it produces OM amount of the output. To produce this output, firm incurs an average cost of MF whereas it earns average revenue ME. At equilibrium MF > ME, firm incurs a loss of EF per unit of output produced. Because the total revenue earned is only OPEM, whereas the total cost incurred is ORFM, firm incurs a total loss of PRFE. Loss incurred is too much for this firm to continue, as this firms' AVC curve is also above its AR = MR curves - i.e. it's unable to cover even its AVC. In the above condition, at output OM, firm's AVC, is equal to MG that is greater than AR = ME. Therefore this firm isn't even recovering its daily or running expenses so it should shut down.
Figure: Shut down point
Question 1: (a) Describe how asymmetric information influences the price system and resource allocation. Provide examples to support your answer. (b) Managerial decision-ma
firms both in monopolistic and perfect competition tend to make normal profits but why do they criticize only monopolistic competition
The concept of point elasticity is applicable where change in price and the resulting change in quantity are infinite or small. Though, where change in price and consequent hunger
In the long run, because of the assumption of free entry and exit of the firms, it's not possible for the firms to make super-normal profits nor it is possible for them to incur lo
how to solve problems using derivatives ?
KEYNESIAN AND NEW-KEYNESIAN THEORIES OF UNEMPLOYMENT AND THE BEHAVIOUR OF REAL WAGES As mentioned above, two phenomena about the labour market need to be explained:
a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast
production function
what is a firm
The Barcelona Football Club is considering the signing of a player of international fame. The problem is that the player has a reputation for having a weak knee. The probability th
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd