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

Incremental profit, Electron Control, Inc., sells voltage regulators to oth...

Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment

Effectiveness of trade unions in developing countries, Effectiveness of Tra...

Effectiveness of Trade Unions in Developing Countries Trade Unions in developing countries tend to be less effective in their wage negotiations with employers than their count

Plot the demand schedule and draw the demand curve for the d, Plot the dema...

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

Marginal cost, Marginal Cost This is the increase in total...

Marginal Cost This is the increase in total cost resulting from the production of an extra unit of output.  Thus, if TC n   is the total cost of producing n

Nature and function of money, The nature and function of money The dev...

The nature and function of money The development of money was necessitated by specialization and exchange.  Money was needed to overcome the shortcomings and frustrations of t

The extreme end of the beach, Assume that Nicolas and Orson plan to sell so...

Assume that Nicolas and Orson plan to sell soft drinks on a beach this summer. The beach is 400 meters long and sunbathers are spread evenly across its length. Nicolas and Orson se

Mixed strategy, Ingrid and Jeff would like to use Saturday night together b...

Ingrid and Jeff would like to use Saturday night together but have dissimilar tastes in entertainment. Jeff would like to go to the opera but Ingrid would prefer to see soccer. As

Calculate the optimal lifetime incomes and firms, Dan and Ann are chemical ...

Dan and Ann are chemical engineers working for a biotech company. Each of them would like to be promoted to a managerial position, but only one of them can get the job. Their super

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