A firms total profit equals?

Q: What happens to the average fixed cost, when the output of a firm increases.

A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…

Q: What are the fixed and variable cost?

A: Fixed costs are that cost which remains same and incur even when there is no production.  Variable…

Q: P 100 er. 5 ATC AVC

A: Fixed cost refers to the cost that remains same at all levels of output. This cost does not depend…

Q: If a firm closes down and produces no output, what will be its total cost ?

A: Total cost refers to the total cost incurred in process of manufacturing by a firm or company making…

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: What is the difference between Economic Profit and Accounting profit?

A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…

Q: What does average fixed cost fall with increase in output?

A: Fixed cost per unit of output is known as average fixed cost. Because the same amount of fixed costs…

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: Use the cost table below to find the following marginal costs. Output quantity Total Variable Cost…

A: The cost structure of a firm determines its productivity. The total cost of a firm comprises of…

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: What is another term for marginal costs

A: Marginal cost refers to the additional cost incurred by firm or a producer when one additional unit…

Q: What is the marginal cost for this product?

A: A cost function refers to the formula that is used to predict the cost that the firm will incur at a…

Q: What level of output does a firm produce?

A: The quantity of products and services produced in a particular time period is referred to as output…

Q: In the short run, the firm should

A: A firm should produce in short run if the market price is greater than average variable cost.  And a…

Q: The graph shows the relevant curves for a profit maximizing monopolist. Assume that it is possible…

A:

Q: Which stage of short run production is efficient? Why?

A: In microeconomics, we have two time periods namely short run and long run. Short run is the time…

Q: Why is the Average Variable cost U-shaped

A: Costs are the expenses that firms incur in the production of goods and services. A firm typically…

Q: What will be the firms total profit?

A: In Perfect competition, the firm is in equilbrium where the MC curve cuts MR curve below. Here, MR…

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.