(Answered) -you are given the following curves that represent a firm

Economics

- You are given the following curves that represent a firm operating in pure competitive industry:

1406_Firm operating in pure competitive industry.png

1. Label the above four curves?

2. Determine graphically the units produced when the firm maximizes its profits.

3. Will the firm realize profit or loss and why?

4. Will the firm continue to produce or shut down and why?

5. Determine graphically the firm''s profit or loss graphically.

6. Determine graphically the firm''s average fixed cost (AFC) when it maximizes its profit?

1326_Firm operating in pure competitive industry1.png

A) The firm should maintain output at 600 units, because at this output level, marginal revenue is greater than marginal cost, marginal cost is minimized, and price is the highest.

B) The firm should increase the level of output because at 600 units, marginal revenue is greater than marginal cost.

C) The firm should increase output because at 600 units price is above marginal cost.

D) The firm should increase the level of output until it reaches the minimum average cost.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91395586
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question corporate directors are either insiders who hold

Question: Corporate directors are either insiders who hold (or have held) important positions within the company or outsiders who have achieved distinction elsewhere. a. Why do you as a shareholder probably prefer that t ...

Question the following is an excerpt from a conversation

Question: The following is an excerpt from a conversation between two sales clerks, Jean Moen and Sara Cheney. Jean and Sara are employed by Turpin Meadows Electronics, a locally owned and operated electronics retail sto ...

Suppose that demand and supply schedules are given

Suppose that demand and supply schedules are given by: Price Quantity Dem Quantity Supp $ 0 21 0 $1 18 4 $2 15 8 $3 12 12 $4 9 16 $5 6 20 $6 3 24 $7 0 28 At a price of $4, there would be a ____________ of the good. A. s ...

Question based on your reading of the first two chapters of

Question: Based on your reading of the first two chapters of the text, focus in on one of the main concepts covered (e.g., scarcity, ceterus pariubus, association vs. causation, opportunity cost, marginal analysis, etc.) ...

Question some crops have flowers that are rich in nectar

Question: Some crops have flowers that are rich in nectar, but pollination by bees has only a small effect on their yields. Construct an example to show that in this case the beekeeper will probably pay for the right to ...

Question savers are taxed on the nominal interest payments

Question: Savers are taxed on the nominal interest payments they receive rather than the real interest payments. Suppose the federal government shifts from taxing nominal interest payments to taxing only real interest pa ...

Question a company has already spent 80000 developing a new

Question: A company has already spent $80,000 developing a new product, and is now considering whether or not to market the product. Tooling for production of the new product would cost $50,000. If the product is produce ...

Question identify at least two effective marketing

Question: Identify at least two effective marketing strategies for helping companies avoid "marketing blunders" for their products or services in foreign countries. Outline the pros (advantages) and cons (disadvantages) ...

Global poverty is an international issue other countries

Global poverty is an international issue. Other countries are inclined to look to the U.S. with its great wealth to take an active role in assisting poor nations. People here spend money trying to counter baldness while ...

Question john is planning on repaying a debt of 25000 with

Question: John is planning on repaying a debt of $25,000 with a quarterly payment $1,200 for the next 23 quarters and a final payment of "X" dollars at the end of 24-th quarter. If the interest rate is 12% per year, comp ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert