Maximum possible profitable firm

A firm possessing important market power may suffer by managerial slack [X-inefficiency] and unessential high costs, which implies that, the firm: (i) is likely to be absorbed through a predatory rival. (ii) realizes less than the maximum possible profit. (iii) is likely to aggressively try to acquire other firms. (iv) is protected from competition through strategic barriers to entry. (v) will suffer economic losses due to asymmetric information.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Risk and Uncertainty of Probability

If estimating the nature of a probability function for an event entails considerable guesswork since experience along with the event is more sporadic or rare which any estimates are extremely speculative, in that case we confront a concept Fra

Q : Unitarily price elastic of demand At a

At a price for $25, the demand for DVD games is around: (w) perfectly elastic. (x) perfectly inelastic. (y) unitarily elastic. (z) positively associated to supply.

Q : Problem on Equilibrium price What

What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib

Q : Positive economic analysis and normative

Which of the given two statements involves positive economic analysis and which normative? How do the two type of analysis differ?a. Gasoline rationing (allocating to each year to each individual an annual maximum amount of gasoline whi

Q : Economic theories Economic theories: A)

Economic theories: A) are useless because they are not based on laboratory experimentation. B) that are true for individual economic units are never true for the economy as a whole. C) are generalizations based on a careful observation of facts. D) are abstractions an

Q : Quantity of good supplied-Law of supply

The law of supply states that the amount of a good supplied is: (i) Legally governed by the production regulations. (ii) Inversely related to its absolute price. (iii) Recognized by the consumer tastes in the free market economy. (iv) Positively relat

Q : Determine the market price when demand

When both demand and supply rise within the market for cell phones, we would suppose the market price to: (w) increase. (x) decrease. (y) increase, decrease, or stay similar, depending upon the relative magnitudes of the shifts. (z) s

Q : Occurrence of nominal price lower then

When the nominal price of apples at a remote orchard is fewer than at a local grocery store, in that case you are more probable to buy at the orchard when: (w) at all possible, because produce is invariably cheaper at the orchard. (x) you desire to bu

Q : Negative externalities in production

Production which generates negative externalities: (w) would lead to underproduction and overpricing of goods. (x) increases producers’ costs of production. (y) increases consumers cost of purchasing the good. (z) would cause the market price of

Q : Absolute and Complete Inequality

Absolute and complete inequality into the distribution of income or wealth would be reflected within the Lorenz curve demonstrated as: (i) line 0A0'. (ii) line 0B0'. (iii) line 0C0'. (iv) line 0D0'. (v) line 0F0'.

Discover Q & A

Leading Solution Library

Avail More Than 1459222 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1933625
Asked

3,689

Active Tutors

1459222

Questions
Answered

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

Submit Assignment