Compute another firm in a competitive industry that faces, Ask an Expert

Economics

In a competitive industry the market - determined price is $12. A firm is currently producing 50 units of output; average total cost is $10, marginal cost is $15, and average variable cost is $7.

a. Is the firm maiking the profit-maximizing decision ? why or why not? If not, what should the firm do ?

b. consider another firm in a competitive industry that faces a market determined price of $25. the firm is producing 10,000 units of output, and average total cost, which at its minimum value, is $25. Answer part a for this firm

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9277327

Have any Question?Write your Review or question?

Related Questions in Business Economics

Last years budget for the legislative branch of a certain

Last years budget for the legislative branch of a certain government was 4938 million, and this year was 5320 million. Consider last year budget of 4938 million to be the reference value. 1. What will the absolute change ...

Suppose the restaurant industry is perfectly competitive

Suppose the restaurant industry is perfectly competitive and all producers have identical cost curves. The industry is currently at a long-run equilibrium, with each firm producing at its minimum long run average total c ...

A national center for health statistics report based on

A National Center for Health Statistics report based on 1985 data states that 30 percent of American adults smoke. Consider a simple random sample of 17 adults. Find the probability that the number of smokers in the samp ...

Elmers utility function is ux y minx y2 if the price of x

Elmer's utility function is U(x, y) = min{x, y2}. If the price of x is $10 and the price of y is $15 and if Elmer chooses to consume 4 units of y, what must his income be? a. $220 b. $100 c. $320 d. There is not enough i ...

From a consequentialist perspective that has as its

From a consequentialist perspective that has as its objective improving the standard of living of unskilled workers, is the introduction of a minimum wage ethically justified?

Describe two factors contributing to the gender pay gap

Describe two factors contributing to the gender pay gap. Write one equation or one graph for each. What policies could the government pursue to address each factor? Should the government do so?

If a patient who was injured and is thinking about whether

If a patient who was injured and is thinking about whether or not to file a medical malpractice claim against his doctor. He is considered a "rational" decision maker in the sense that he decides whether or not to file a ...

What is asymmetric information and how does it affect the

What is asymmetric information and how does it affect the consumer or buyer?

Sobel consumes positive quantities of both jam and juice

Sobel consumes positive quantities of both jam and juice. The price of jam is 5 cents per unit and the price of juice is 10 cents per unit. Her marginal utility of jam is 10 and her marginal utility of juice is 5. a. Wit ...

Jen and barry perform a survey of consumers about home meal

Jen and Barry perform a survey of consumers about home meal salad preferences ("fresh" or "fast"). 395 consumers said they prefer to make fresh salad. 426 said they prefer to make salad fast (out of a bag). 331 said they ...

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 Business Economics Expert