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!
SHORT RUN EQUILIBRIUM OF THE FIRM
A firm is in equilibrium when it is maximizing its profits, and can't make bigger profits by altering the price and output level for its product or service.
In Short-run the firm may make super-normal profits as shown below:
The firm will produce output q where Marginal Revenue is equal Marginal Cost. At this level of output, the average cost is C. Hence the firm will make super-normal profits shown by the shaded area.
In the Short-Run however the firm does not necessarily need to make profits or cover all its cost. It may only need to cover Total Variable Cost.
The firm's short-run supply curve will be represented by the part of the Marginal Cost curve that lie above the AVC. The firm shall not produce unless the price is equal to P1. Below the price P1 the firm minimizes its cost by shutting down.
who are the contributors in economics and what they contribute in economics
Monetary policies This is the direction of the economy through the variables of money supply and the price of money. Expanding the supply of money and lowering the rate of in
Market demand and consumers surplus Suppose that the market price of a cup of coffee is K£4 but the consumer was willing to pay £9 for the first unit, £8 for the second, £7 fo
Question 1. Discuss the practical application of Price elasticity and Income elasticity of demand Question 2. Discuss profit maximizing model in detail Question 3. Descr
NORMAL AND SUPERNORMAL PROFITS Normal profit refers to the payment necessary to keep an entrepreneur in a particular line of production. In economics, it is generally belie
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
Explain baumol''s static model
a critique of the relevance of managerial economics
BALANCE OF PAYMENTS The Balance of Payments of a country is a record of all financial transactions between residents of that country and residents of foreign countries. (Resi
Q. What is Data mining? Data mining: Data mining is the process of extracting patterns from data. Data mining is seen as an increasingly important tool by modern business to
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