Describe Break Even Price
Describe Break Even Price in Economics for a purely competitive firm?
Expert
Break Even Price (PBE): The “break even price” for purely competitive firm is the minimum price at which the firm can function and not lose money. Any prices lesser than this is a price at which, even when the firm functions in the best possible manner, it will still create economic losses. The price more than this is one at which the firm can create a positive economic gain as long as it makes excellent decisions. The break even price is at minimum, point on the average total cost (or ATC) curve, or PBE = minimum ATC. Note that at the break even price the firm might be making “normal gains” or the payment to entrepreneur. Economists count “normal gains” as part of the net costs of production as they compensate to the entrepreneur to cover the opportunity costs of risk, time and effort place into the business.
Normal 0 false false
Can GDP be more than GNP? Answer: Yes, GDP can be greater or more than GNP if NFIA is negative.
Can someone help me in finding out the right answer from the given options. Demand curve for the gasoline, a normal good, would shift to right when: (1) The legal least age to drive was raised to 18 all through the world. (2) New oil fields were discovered and exploit
Elucidate the merits of regional integration?
Describe the implication of freedom of entry and exit to the firms beneath perfect competition.
I have a problem in economics on Problem regarding Privatization. Please help me in the following question. The procedure of transforming government-run production facilities into ‘for-profit’ businesses is: (i) Privatization. (ii) Cartelization. (iii) Cap
Change in quantity demanded: When change in demand takes place due to price alone, it is termed as change in quantity demanded.
When Ford raises pickup truck prices 20 percent and Chevy pickup sales rise 12 percent, in that case these goods are _____ as well as their cross elasticity coefficient is approximately _____. (w) complements; 0.6. (x) substitutes; 0.6. (y) subs
Surveys can be classified as probabilistic sampling: • Simple random sampling: If you have a relatively small, self-contained, or clearly stated population, suc
Darlene thinks as the “cowboy look” will rebound sharply subsequent spring. Then she travels to Mexico and buys ten-thousand pairs of primo cowboy boots at $35 every, and after that waits, expecting to sell them for $350 a pair in Chicago within the spring
18,76,764
1941831 Asked
3,689
Active Tutors
1460943
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!