Maximum economic profit operates in new competitive firm

+44 141 628 6080
[email protected]

When this competitive firm operates at point d in demonstrated graph, in that case this: (w) could increase profits by expanding output to q₅. (x) maximizes economic profit [ as area P₂P₁de], but these profits will evaporate in the long run as new firms enter the industry. (y) minimizes economic losses, that equal area P₃P₂ef. (z) experiences total fixed costs equal to area OP₁dq₄.

2452_Total Revenue1.png

Can someone explain/help me with best solution about problem of Economics...

View Complete Question

Related Questions in Microeconomics

Q : Average cost-aversge variable

Relation between Average cost, aversge variable cost and Marginal cost:

Q : Dilemma on labor monopsonist The labor

The labor monopsonist will hire labor up to the point where the marginal: (i) Revenue product of the labor equivalents the wage. (ii) Resource cost of labor equivalents the salary. (iii) Revenue product of labor equivalents its marginal resource cost. (iv) Resource co

Q : Lowest possibility for price elasticity

The price elasticity of demand would possibly be lowest for: (1) Dasani. (2) Deer Park. (3) Aquafina. (4) bottled water. (5) Perrier. Can anybody suggest me the proper explanation for given problem regarding

Q : Production at exceeds marginal costs by

For any profit-maximizing monopolist not capable to price discriminate, production arises at an output level where is: (w) price exceeds marginal costs [P > MC]. (x) marginal revenue exceeds marginal costs [MR >

Q : Buyer beware-Laws and Regulations I

I have a problem in economics on Buyer beware-Laws and Regulations. Please help me in the following question. Caveat emptor signifies: (i) Let the sellers beware. (ii) Sellers are the most excellent judges of the quality of their goods. (iii) Charge w

Q : Substitution Effect-relative price of

The substitution effect signifies to the change in consumption pattern as: (1) The absolute price of the good modifications. (2) Income changes. (3) The relative price of good changes. (4) The quality of good changes. Can someone p

Q : Maximizes profits or minimizes losses

When it is feasible for total revenue to exceed variable costs, in that case a monopolist which does not price discriminate maximizes profits or minimizes losses from producing the output where marginal revenu

Q : Copyrights in legal barriers to entry

Legal barriers to entry do NOT comprise: (1) outright governmental prohibition of entry. (2) protection of inventions by patent. (3) licensing and bonding restrictions. (4) substantial economies of scale. (5) copyrights for music, computer software an

Q : Economic Rent of Demand Curve When D 0

When D0 is the initial demand curve for land in this illustrated figure, within equilibrium the economic rent realized through the landowner will be: (1) zero. (2) area Ocef. (3) area cae. (4) area Oaef. (5) a pure economic

Q : Highest hourly wages rate and lowest

From the given choices, in given graph Glynn would be happiest at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e. 1669_Lab</span></p>
</div>

</li>

</td>
</tr>
</table>

</ul>

</div>
</div>
<div class=

Discover Q & A

Leading Solution Library

Avail More Than 1422683 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1955872
Asked

3,689

Active Tutors

1422683

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment