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

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

You turned down a job at ABC Corp last year that would have paid you $125,000 per year and started your own company. When you calculated your economic profit, it came out at $0. You expect the business will be exactly the same next year. ABC called and said you could still take the job. You should... A. Keep running your company as-is. B. Keep running your company but pay yourself less. C. Keep running your company but pay yourself more. D. Shut down your company and take the job at ABC.

Economics 1. Rob Doe just started a ice cream business within a perfectly competitive market. The new business man was told that he would charge a price that is equal to marginal revenue. The market clearing price for ice cream is $20 dollars per scoop. The total cost for producing ice cream is given by: Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day. a. How many ice cream should Rob choose to produce to maximize profit? b. Calculate Rob's maximum daily profit c. Graph these results, and label Rob's supply curve

Below is a graphical illustration of a typical firm operating in a monopolistically competitive industry: P5 P4 P3 P2 P1 H Q1 Q2 Q3 Refer to the graph above to answe question. Which of the following statements is correct? ATC S

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.

Expert Solution & Answer

Want to see the full answer?

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

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.