What happens when a company doesn't follow economic thoery and charges pries below the marginal revenue point? Or doesn't realize the economies of scale?

Q: why do the moddenn day firms focus non economic objectives. explain

A: The basic objective of any firm is profit maximization.

Q: of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If…

A: The marginal revenue curve is a horizontal line at the market price, implying perfectly elastic…

Q: Which of the folowing will not hold true kor a competitive firm in long-run equibrium? OAP= minimum…

A: Competitive firm or the Perfectly Competitive Market: In the short run, a competitive firm earns…

Q: Explain how short-run economic profits become long-run economic costs. When profits fall to zero,…

A: A stopwatch or a calendar cannot correctly identify the boundary between the short and long runs. It…

Q: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. How can you…

A: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. The…

Q: The application of the marginal cost pricing principal in a decreasing cost industy would lead…

A: According to the given question The cost principle basically determines the practice of setting the…

Q: n firm has total cost of TC(y)=y² +1 and marginal cost of MC(y)=2y. At what level of output does the…

A: total cost (TC) is the minimum dollar cost of producing some quantity of output. This is the total…

Q: (a) Fill in the table below. Instructions: Round your answers to the nearest whole number. Total…

A: Since you have asked multiple questions and according to our policy we will only solve the 1st…

Q: Complete the Daily Production Cost Schedule table below.   Quantity MR = Price per Unit TFC TVC…

A: The cost-of-production theory of value is a concept in economics that holds that the price of a good…

Q: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: Why firm operates in the market adopting a marginal thinking(i.e. produce at MR=MC). Why do not they…

A: The condition of equality of marginal revenue and Marginal cost is the point of profit maximization…

Q: Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost…

A: The equilbrium price and quantity of a good sold in a competitive market are determined by the…

Q: tal cos

A: The theory of cost-of-production states that the price of an object or a condition is in turn being…

Q: Can the marginal revenue be negative??? True/False

A: Marginal revenue refers to the amount of additional revenue thay a producer gets when he produces…

Q: A. Is this firm working in a comppitive market or monomply? Explain. B. Is it working in short or…

A: The graph is:

Q: 49. The long run is a A. O Period of three years or longer B. O Period long enough to allow firms to…

A: Long run refers to the period of time where there is no fixed cost and all the factors that are…

Q: a. What is Mr. Leung’s fixed cost? b. For each level of output, calculate the variable cost (VC).…

A: Fixed cost = cost when output is zero TVC = TC – FC ATC = TC / Qty AFC = FC / Qty AVC = AVC / Qty MC…

Q: b. Under which condition marginal revenue can be negative? Explain with the help of an example. only…

A: Marginal revenue is less than the average revenue and may even be negative when a corporation faces…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: How can we Determine Accounting Profit?

A: Profit is the income that the fourth factor of production, i.e. enterprise, generates from an…

Q: C. What is Karol's fixed cost per lobster at an output level of 60,000? D. At an output level of…

A: In the given question, the cost curves of Karol's Lobsters Inc is given. We know that: Total Cost =…

Q: a. What is the profit-maximizing level of output?

A: The main objective of every firm is to maximize their profits. Profits are calculated by taking the…

Q: Does the firm can also earn zero profit or even loss where MC=MR?   a. maybe   b. yes   c. sometimes…

A: Firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost,…

Q: a b. C. Determine each of the following (show all your work): explicit costs implicit costs…

A: An explicit cost is a direct payment made to others in the course of running a business, such as…

Q: on in sh

A: Perfect competition is a market structure which leads to the Pareto-efficient allocation of…

Q: Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must sell in order to…

A: Fixed costs are the costs that are incurred by the producers that do not change with the increase or…

Q: A. Define marginal revenue and marginal cost.

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: WHat happens when a company does not follow economic heory and charges prices below the marginal…

A: Marginal revenue: It is the revenue that is being generated when an additional unit of output is…

Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…

A: Imperfect competition is that market structure which does not include  Perfect competition. It…

Q: A computer company produces affordable, easyto-use home computer systems and has fixed costs of…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: the table below shows the output cost and revenue situation of a firm. Study the table and asnwer…

A: Output cost is associated with the production process. When producer starts production of some…

Q: oduced. pany currently produces 1 million tablets and makes a profit of D00, but -f tablets could…

A: * SOLUTION :-    From the given information the calculation as follows.

Q: Which 'Economies of Scale' creates imperfect competition and Why?

A: Economies of scale refers to a situation where there is fall in per unit output of average cost with…

Q: Define the term Unit-Profit?

A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…

Q: What is the relationship between Lite and Kool's price and marginal cost?

A: g. In perfect competition, P = MC

Q: Discuss where does the shutdown being and why? What does the company has to do to get back to…

A: The answer is given below

Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.

A: As the new firms enter the market, they increase the demand for production factors to produce goods…

Q: A firm TC = 120 + 50g - 10q? + q* Find the equations for a) Total Variable Cost b) Average Variable…

A: Question Two: TC = 120 + 50q - 10q2 + q3 (A) Variable cost is that part of TC which depends on…

Q: Explain why earning zero economic profit is not as bad as itsounds.

A: In the field of economics, it is assumed that the sole objective of any firm is profit-maximization.…

Q: How profit is different from the incorporating normal profit and when the normal profit is into…

A:

Q: A firms total profit equals?

A: The amount of money a company makes by selling its goods or services at a specific price is revenue.…

Q: Cost LRAC 40 30 20 10 100 200 400 800 Output b. What happened to the cost of one good as the firm…

A: Marginal is the cost of producing 1 additional unit of output.

Q: Refer to the table. If the firm produces 5 units that it sells at a price of $30.00 each, what will…

A: Use the below formula to find the profit and loss: Profit / Loss = Total Revenue - Total CostTotal…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

Q: To compute economic profits, which costs are used?

A: The economic profits of a firm could be estimated by the difference between total revenue and total…

Q: B. The table below shows the cost structure of a hypothetical firm, ClementAddae Enterprise.…

A: Formulas to calculate different cost structures would be: Variable cost=Total cost-Fixed costAverage…