How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?

Q: What does the demand curve for a perfectly competitive individual seller look like? Explain the…

A: Perfect competition is one of the types of market structures.

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

Q: The, competitive firm maximizes its profit by operating where:

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…

Q: If the price of the good is 0.70$ And the firm is producing 100 units what would the profit be -10 5…

A: Marginal cost alludes to the extra expense to produce each extra unit. Average total cost is the…

Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: A firm should shut down in the short run if it is not covering its

A: To find : When should firm shut down.

Q: What two lines determine whether a firm is making positive or negative or zero profits?

A: Introduction The perfect competitive firm only needs to decide on one thing: how much to make. To…

Q: How much profit or loss does the firm make at the selected output level?

A: The additional cost incurred in the manufacturing of one more unit of a good or service is known as…

Q: Explain how a firm chooses a level of output to maximise profit

A: The profit maximization refers to a situation where the firm is earning the maximum possible profits…

Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: Use the graph above to answer these questions: What is the profit-maximizing level of output? What…

A: The graph shows the quantity at Y axis and the price at X axis. The curves that are shown in the…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: What quantity should the firm produce to maximize profits? 400 units BO 800 units CO 600 units 200…

A: The Condition of Profit maximization in a monopoly Market is where the Marginal cost is equal to the…

Q: According to the graph below, the firm doesn't make a profit when the quantity exceeds what value?…

A: Profit is the difference between the total revenue and and total cost.

Q: How does a competitive firm determine its profit-maximizing level of output? Explain When does a…

A: Competitive firm: In a perfectly competitive market, firms do not have control in changing the…

Q: What are the options available to a firm when the market demand exceeds capacity?

A: Here's a set of features that assist companies in proactively addressing excess demand and…

Q: what tools and techniques are available to improve a firm's profits?

A: There are many tools and techniques available which is used by the firm to improve profit.Following…

Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?

A: A monopoly occurs when a single person or corporation serves as the exclusive supply of a certain…

Q: Evaluate the view that the main goal of firms will always be profit maximization

A: The profit is the excess revenue made by the firms after deducting the total cost of production from…

Q: Explain how market competition affect the mark –up in price setting and the fraction of the marginal…

A: If there is market competition then setting mark-up price will be affected a lot. Let's understand…

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: A manager makes the statement that output should be expanded as long as average revenue exceeds…

A: Average revenue: Total revenue per unit of output = Price/OutputAverage cost: Total cost / output =…

Q: Determine the output level that will maximize economic profit.

A: Economic profit is the difference between the sum of explicit and opportunity costs from the revenue…

Q: Has any particular firm in the perfectly competitive market found a way to differentiate or…

A: Perfect competition is characterized by homogeneous products which are perfect substitutes for each…

Q: Faced with rising costs , when should a firm choose to shut down , for example in (a)in the short…

A: a) In the short run, there are three possibilities. If price/average revenue > average variable…

Q: At what output rate does the firm maximize profit or minimize loss?

A: After marginal revenue exceeds marginal cost,at that output rate firms maximize profit.

Q: What specific data must a firm examine to decide the quantity of product it should produce to make…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Describe the difference between average revenue and marginal revenue. Why are both of these revenue…

A: The average revenue is the amount of money a company may make by selling a single unit of their…

Q: Why are abnormal profits of a firm difficult to sustain?

A: The abnormal profits under perfectly competitive market are difficult to sustain because of the free…

Q: Using curves, graphically, a firm will shutdown if what? What is an output at which the firm makes a…

A: Economic profit refers to the excess of total revenue over total cost.  To calculate the economic…

Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…

A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…

Q: Do you think firms really try to maximize profits? Do firms (especially small ones) know what prices…

A: Economist generally assume that firms act as profit maximisers. Economists don’t think there’s…

Q: What type of industry has the characteristics where there are many producers, they are able to…

A: The industry is said to be Monopolistic Competition. Monopolistic competition is the market…

Q: Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best…

A: Consumer: It refers to the people who buy goods and services from the market. The producer will be…

Q: Which statement is true? a. Socio-cultural factors do not determine the goods that society is likely…

A: socio-cultural factors are the factors that effect the consumers choices and tastes and they effect…

Q: how does "Economic Profit" differs from the measurement of profit in other fields such as…

A: Profits help the business organization to expand and cover all its expenditures.

Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…

A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…

Q: The correct answer to whether it should be produced is that the firm should produce in the short…

A: The decision of whether a good should be produced further depends on price and average variable…

Q: Explain in words why a profit-maximizing firm will not choose to produce at a quantity where…

A: Profits are the excess of revenue receipts over costs incurred by a firm in the production and sale…