When does Concave profit curves occur? Explain with an example?

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: Is the theory of profit maximization logically perfect?

A: Theory of profit maximization:- The theory of profit maximization defines the conditions of maximum…

Q: Questions 1-3 use the following case to determine a way to take a single product, like toilet and…

A: Equilibrium quantity:Equate marginal revenue and marginal cost to ge the value of equilibrium…

Q: explain why a firm might want to produce its good even after diminishing marginal returns have set…

A: The firm may wish to continue operating and manufacturing products even after decreasing marginal…

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: 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: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: profi

A: Profit maximization is the process which maybe used in short or long run which helps a firm in…

Q: Using the previous table, what is the profit maximizing level of output?

A: Profit Maximization:Profit maximization happens at the point where the marginal revenue (MR) and…

Q: Explain how economics make profit or loss when firms are perfectly competitive.

A: In a competitive market there are large number of firms producing similar and identical products…

Q: In the short run, at a market price of $45 per watch, this firm will choose to produce On the…

A: Average Total Cost represents the total production cost with respect to the overall quantity…

Q: PRICE (Dollars per jumpsuit) Hint: Once you have positioned the rectangle on the graph, select a…

A: A market with perfect competition is an idealized structure where a large number of sellers and…

Q: When is the law of diminishing marginal returns relevant? Selected answer will be automatically…

A: The Law of diminishing marginal returns is when a firm reaches some optimum level of production and…

Q: Total Revenue Ст Maximum Profit Los Profit Cv Cr D'2 D Volume (Demand) Cost and Revenue

A:

Q: How do you determine if a firm is profit maximizing?

A: A firm is profit maximizing if the firms total cost is less than is total revenue(TR = TC). We can…

Q: How do you calculate whether your business has an economic profit using marginal approach to profit…

A: Economic profit is a measure of performance that compares the profitability of a business with what…

Q: he table below shows the price and cost information for a firm that operates in a perfectly…

A: Perfect competition is the market structure in which there are large number of buyers and sellers…

Q: Tom, a math major, examines Jane's economics class notes and observes that when price- taking firms…

A: Tom's observation is correct. When price-taking firms earn economic profit, they do not necessarily…

Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…

A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…

Q: Questions 1-3 use the following case to determine a way to take a single product, like toilet and…

A: In the case where the buyer sells one role at the time, the seller will sell the roll at the…

Q: How does a change in the response rate affect profit?

A: A response rate refers to a rate that shows the number of people or participants who have responded…

Q: What is an example of another business that stays open even when it's slow, and its revenue does not…

A: A firm may decide to remain open even when it’s slow and revenue does not cover its costs. This can…

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

A: This is a perfectly competitive market as price is independent of output produced. Thus 1 represents…

Q: Economists assume that by pursuing a strategy of cost minimization of production, most firms try to…

A: The producer can have either profit maximization motive or cost minimization motive. The cost…

Q: One of the students states that this actually is beneficial to the firm because less output means…

A: Marginal analysis is an economic concept that involves examining the additional benefit or cost of…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).