If you know that the market price for a perfectly competitive firm is 10 Dirhams and the average total cost for this firm -5 dirhamds and the quantity of the maximum profit for this company is- 100 units and the profit/loss (market price - average total cost) x quantity of maximum profit 1- calculate the amount of profit or loss this company has 2- do you advise the company to continue in the market or to shut down the business?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Question 14
if you know that the market price for a perfectly competitive firm is 10 Dirhams
and the average total cost for this firm -5 dirhamds
and the quantity of the maximum profit for this company is - 100 units
and the profit/loss (market price - average total cost) x quantity of maximum profit
1- calculate the amount of profit or loss this company has
2- do you advise the company to continue in the market or to shut down the business?
Transcribed Image Text:Question 14 if you know that the market price for a perfectly competitive firm is 10 Dirhams and the average total cost for this firm -5 dirhamds and the quantity of the maximum profit for this company is - 100 units and the profit/loss (market price - average total cost) x quantity of maximum profit 1- calculate the amount of profit or loss this company has 2- do you advise the company to continue in the market or to shut down the business?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Demand Schedule
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education