Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
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Question
Chapter 12, Problem 12P
To determine
(a)
The output that a firm produce with given respective prices.
To determine
(b)
Determine the economic profit, Zero economic profit and negative economic profit of the firm.
To determine
(c)
Calculation of price at which firm will shut down.
To determine
(d)
The firm's supply curve.
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(a) What is meant by zero economic profit?(b) What are the conditions that need to be satisfied for a long-run competitive equilibrium?
Economic
Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis.
a.Approximately where do you think the price will end up in this market over the long run?
b.Last, instead of assuming a given price, how would you go about finding the equilibrium price if you were given information on market demand?
Chapter 12 Solutions
Exploring Microeconomics
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