--%>

Minimum possible economic losses

Hello guys I want your advice. Please recommend some views for below illustrated figure of Economics problem that for this profit-maximizing pure competitor, area Pbgh signifies: (1) fixed cost (TFC). (2) average fixed cost (AFC). (3) losses, but the minimum possible economic losses. (4) maximum positive economic profits. (5) rate of return on investment.

2028_profit-maximizing.png

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

   Related Questions in Microeconomics

  • Q : Profit Maximization in Labor Markets

    Can someone help me in finding out the right answer from the given options. All the profit maximizing firms use labor up to the point where: (1) VMP = MFC. (2) VMP = w. (3) VMP = MRP. (4) MRP = MFC. (5) MR   MC is maximized.

  • Q : Change in prices after short run demands

    Can someone please help me in finding out the accurate answer from the following question. The changes in gasoline prices do not change short-run demands for (1) Bigger versus smaller cars. (2) Gasoline. (3) Alternative forms of the transportation. (4) Batteries, Tire

  • Q : Earn normal accounting profit in the

    When a purely competitive industry is into long run equilibrium, in that case a typical firm can: (w) earn normal accounting profit although only zero economic profit. (x) incur economic losses when these are offset by accounting prof

  • Q : Problem on Economic Capital Your

    Your construction company just bought a bulldozer on credit. From the viewpoint of your company, this bulldozer is an illustration of: (i) Liability. (ii) Fixed costs. (iii) Net variable cost. (iv) Capitalization. (v) Economic capital.

    Q : Demand for labor by monopolist Can

    Can someone please help me in finding out the accurate answer from the following question. The demand for the labor by a monopolist in product market is its: (i) Value of the marginal product (or VMP) curve. (ii) Marginal revenue of product (or MRP) curve. (iii) Its m

  • Q : Problem regarding to present value and

    When the price of a financial asset is of $2,000 and the interest rate is 10 percent, in that case investment is not reasonable for: (1) a perpetuity paying $200 annually. (2) an income stream paying $1000, $800, and $600, respectivel

  • Q : Occupational Licensing The capability

    The capability of otherwise skilled workers to engage in specific careers or enter some professions is most likely most inhibited by: (1) Occupational licensing. (2) Wage discrimination. (3) Segregation in school system. (4) Signaling and screening. (5) Union labor co

  • Q : Influence of good on opportunity cost

    The law of demand defines that, all as well constant, consumers will obtain: (i) More of a good, the lower its opportunity cost. (ii) Less of any good, higher the prices of its substitutes. (iii) Advertised goods more often than generic products. (iv) Greater luxuries

  • Q : Competitive equilibration processes

    When a purely competitive industry is within long-run equilibrium and consumer demand then raises, the short-run industry quantity supplied and equilibrium price would tend to: (w) fall. (x) rise. (y) remain similar. (z) swing up and

  • Q : Question on tax payer New agricultural

    New agricultural program named as the Payment-in-Kind Program is introduced by the Reagan Administration, in the year of 1983. In order to distinguish how the program performed, consider the wheat market. Had the government not given the whea