Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

In class is was claimed that at the wealth maximizing output for a price searcher who is making zero (economic) profits, the Average Total Cost Curve must be tangent to the Demand Curve rather than merely be equal to but bisecting the Demand (either from the bottom or top) at that output. Prove or refute that claim. (Assume that there is no price discrimination of any sort; unit prices charged to any buyer, once set, are the same regardless of number of units sold.)

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92195278

Have any Question?


Related Questions in Business Economics

Would it ever be rational for a firm to retain an employee

Would it ever be rational for a firm to retain an employee whose current marginal revenue product is less than her current wage? Explain.

We perform a statistical test to examine if the mean

We perform a statistical test to examine if the mean lifetime of lab mice increases when given vitamin B12 compared to a placebo. Which of the following is a Type I error? Conclude that Vitamin B12 increases the mean lif ...

Sally purchases hardwood lumber for a custom

Sally purchases hardwood lumber for a custom furniture-building shop. She uses three suppliers, Northern Hardwoods, Mountain Top, and Spring Valley. Lumber is classi ed as either clear or has defects. Sally estimates tha ...

Wendys fast-food restaurant sells hamburgers and chicken

Wendy's fast-food restaurant sells hamburgers and chicken sandwiches. On a typical weekday, the demand for hamburgers is normally distributed with a mean of 500 and standard deviation of 90 and the demand for chicken san ...

Assume you are working at the consumer protection agency

Assume you are working at the Consumer Protection Agency. Recently, you have been getting complaints about the highway gas mileage of a new minivan. The car company agrees to allow you to select randomly 40 of its new mi ...

1 a cpu manufacturing company knows based on the machines

1. A CPU manufacturing company knows, based on the machines working at maximum productivity, that 90% of the CPU's coming off the line meet quality standards.  The quality control inspector pulls 25 CPU's off the line to ...

Why are farmers paid so little the price of agricultural

Why are farmers paid so little? The price of agricultural goods like chickens and coffee has been falling for decades and the share going to farmers has also been falling. What is the "Global division of labor" in food p ...

An article describes a study that appeared in the journal

An article describes a study that appeared in the journal Pediatrics. In this study, researchers looked at records of 2500 children who were participating in a long term health study. They found that 10% of these childre ...

Suppose a consumer is trying to make a choice over the

Suppose a consumer is trying to make a choice over the consumption of two goods: x and y. Px = 3, Py = 4 and the income is equal to 50. Assume that the government distributes some stamps that are good to buy 5 units of g ...

A confidence interval estimate is desired for the gain in a

A confidence interval estimate is desired for the gain in a circuit on a semiconductor device. Assume that gain is normally distributed with standard deviation σ = 30. (a) How large must n be if the length of the 95% CI ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As