When is production profitable according to price-taking firm, Managerial Economics

Assignment Help:

When is production profitable according to price-taking firm at profit, break-even or loss?

Production profitable at profit, break-even or loss:

a. When TR > TC, in that case the firm is profitable.

When market price exceeds minimum average total cost, then the producer is profitable.

b. When TR = TC, then the firm breaks even.

When the market price equals minimum average total cost, in that case the producer breaks even.

The break-even price of certain a price-taking firm is the market price at that this earns zero profits.

c. When TR < TC, in that case the firm incurs a loss.

When market price is less than minimum average total cost, then the producer is unprofitable.


Related Discussions:- When is production profitable according to price-taking firm

Economic theory, How does economic theory contribute to managerial decision...

How does economic theory contribute to managerial decisions?

Returns to scale, A company uses 2 inputs, K and L in its production functi...

A company uses 2 inputs, K and L in its production function. The production function is given as where Q, K and L are in units per week. Price of input K per unit is RM100, and inp

Fixed exchange rate, Country A has a fixed exchange rate with country B. Du...

Country A has a fixed exchange rate with country B. Due to a recession in country B, demand for A's goods falls. Draw what would happen on the graph below. On the graphs, draw what

Question, Q.2. On the basis of the analysis of the case above, what is your...

Q.2. On the basis of the analysis of the case above, what is your opinion about legalizing marijuana in Canada ?mum 100 words accepted#

Corporate profit maximization , Difference between corporate profit maximiz...

Difference between corporate profit maximization and maximization of shareholder wealth? Ans) Sure, profit maximization relates to profits *only* while shareholder wealth also i

Direct intervention of government in economy, Direct intervention   T...

Direct intervention   The government can also intervene directly in the economy to see that its wishes are carried out.  This can be achieved thorough: a.     Price and i

Demand curve, Plot the demand schedule and draw the demand curve for the da...

Plot the demand schedule and draw the demand curve for the data given for Marijuana in the caseabove.

Costs of unemploment and inflation, COSTS OF UNEMPLOMENT AND INFLATION   ...

COSTS OF UNEMPLOMENT AND INFLATION   In  an  economy  both  unemployment  and  inflation  have  adverse effects  and policy makers  formulate policy instruments to contain both

the total cost of giving this insured service, The services of a certified...

The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this

Break-even quantity., Bikes-for-two, Inc., produces tandem bicycles. Its co...

Bikes-for-two, Inc., produces tandem bicycles. Its costs have been analyzed as follows: VARIABLE COST Materials $30/unit Manufacturing labor 3 hours/unit ($8/hour) Assembly labor 1

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd