a firm earns zero economic profit when? A) price is equal to average variable cost B)...
a firm earns zero economic profit when?
A) price is equal to average variable cost
B) price is equal to average total cost
C)price exceeds average total cost by the greatest amount
D)marginal revenue is equal to marginal cost
Homework Answers
a) the firm will be earning a zero economic profit when the price of the firm is equal to average total cost in the market. The answer is "B".
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a firm earns zero economic profit when?
A) price is equal to average variable cost
B)...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
A firm will continue to operate in the long run only if: it earns a positive...
A firm will continue to operate in the long run only if: it earns a positive rate of return. it earns a nonnegative economic profit. it makes a positive accounting profit. average cost exceeds price. the average variable cost exceeds price. A profit-maximizing firm should shut down in the short run if: price is greater than marginal cost. total revenue is less than total variable cost. the firm is earning less than a normal rate of return. the firm is...
The minimum point of the average variable cost curve (AVC) is referred to as the a....
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
20. A firm's economic profit is equal to producer surplus when A. average variable costs are...
20. A firm's economic profit is equal to producer surplus when A. average variable costs are minimized. B. average fixed costs are spread over a large amount of production. C. the firm has no fixed costs. D. total revenues equal total variable costs.
For a firm, marginal revenue minus marginal cost is equal to: a) profit b) average total...
For a firm, marginal revenue minus marginal cost is equal to: a) profit b) average total cost c) change in profit d) change in average revenue
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total...
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total cost is: TC = a + bQ2. Use only the cost curve given. Determine mathematically the level of output the firm will produce in the long run. Show mathematically if this amount differs from the amount of output the firm would produce in the short run. Explain why a perfectly competitive firm earns zero economic profit in the long run.
A firm's economic profit is equal to producer surplus when A. total revenues equal total variable...
A firm's economic profit is equal to producer surplus when A. total revenues equal total variable costs. B. the firm has no fixed costs. C. average variable costs are minimized. D. average fixed costs are spread over a large amount of production.
15. When marginal cost is less than average total cost, a. marginal cost must be falling....
15. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising. 16. Which of the following is not a characteristic of a competitive market? a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited d. Each firm chooses an output level that maximizes profits. 17. If a...
If a firm is earning economic losses,
1. If a firm is earning economic losses, a. it also has an accounting loss. b. the owner could be earning more in some other occupation. c. the firm must go out of business in the short run. d. new firms will want to get into that industry. 2. Economists say that a firm has a normal profit when a. it earns a return of at least 10 percent. b. its accounting profit exceeds its implicit costs. c. it can pay all its variable costs. d....
i need help pls last chance 21... In monopolistic competition, when firms make an economic profit,...
i need help pls last chance 21... In monopolistic competition, when firms make an economic profit, A. new firms enter the industry so that the price falls and the economic profit eventually falls to zero. B. the existing firms continue to make an economic profit in the long run because of product differentiation. C. new firms enter the industry so that output decreases and the economic profit increases. D. new firms enter the industry so that output increases and the...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
15. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising. 16. Which of the following is not a characteristic of a competitive market? a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited d. Each firm chooses an output level that maximizes profits. 17. If a...
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