(a) To explain: Whether the firms will exit the industry if there is zero economic profit or not.

Question

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Answer 1

Question

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

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Can you show me the answers for parts a and b? Thanks.

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What are the answers for a,b,c,d? Are they supposed to be numerical answers or in terms of a variable?

Answer 2

Question

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

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Answer 5

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

Answer 6

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

Answer 7

Chapter 12, Problem 17P

To determine

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

Answer 8

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

Answer 9

To determine

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

Answer 10

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

Answer 11

To determine

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Prob. 1P Ch. 12 - Prob. 2P Ch. 12 - Prob. 3P Ch. 12 - Prob. 4P Ch. 12 - Prob. 5P Ch. 12 - Prob. 6P Ch. 12 - Prob. 7P Ch. 12 - Prob. 8P Ch. 12 - Prob. 9P Ch. 12 - Prob. 10P

(a) To explain: Whether the firms will exit the industry if there is zero economic profit or not.

Solution Summary: The author explains whether firms exit the industry if there is zero economic profit or not. Cost minimizing is the primary tool to maximize profit.

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.

Want to see the full answer?

Chapter 12 Solutions

(a) To explain: Whether the firms will exit the industry if there is zero economic profit or not.

Solution Summary: The author explains whether firms exit the industry if there is zero economic profit or not. Cost minimizing is the primary tool to maximize profit.

(a) To explain: Whether the firms will exit the industry if there is zero economic profit or not.

(b) To explain: Whether a firm can increase profit without minimizing costs.

(c) To explain: Whether the profit maximizing firm must minimize its cost.

Want to see the full answer?

Chapter 12 Solutions

(a)

To explain:

Whether the firms will exit the industry if there is zero economic profit or not.

(b)

To explain:

Whether a firm can increase profit without minimizing costs.

(c)

To explain:

Whether the profit maximizing firm must minimize its cost.