--%>

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 : Shut down point in the short run A

    A monopolist will shut down during the short run when its equilibrium price as: (w) equals short-run average cost. (x) exceeds marginal cost. (y) is less than average variable cost. (z) is less than average fixed cost.

    Q : Fundamental Normative Economics The

    The fundamental economic question for that answers are most likely to be different greatly across the populace and be most heavily based upon value judgments is: (1) what goods will society produce? (2) how will resources be used to yield the goods so

  • Q : Maximized profit of purely-competitive

    Profit is maximized as in illustrated graph when this purely-competitive lumber mill produces at: (1) point a. (2) point b. (3) point c. (4) point d. (5) point e.

    Q : Ranges for the price elasticity of

    Economists can’t conceive of any resource or product for that the: (1) price elasticity of demand is zero and the demand curve is vertical. (2) price elasticity of supply is zero and the supply curve is vertical. (3) income elasticity of demand

  • Q : Example of price elasticity of demand

    At P = $100, there 50 tons of Garden-Rich fertilizer are demanded within Patagonia; at P = $80, there quantity demanded is 70 tons. Therefore price elasticity of demand for fertilizer: (w) 5/8. (x) 3/2. (y) 4/5. (z) 2/3.

  • Q : Existence of Economies of Scale I have

    I have a problem in economics on Existence of Economies of Scale. Please help me in the following question. Economies of the scale exist whenever, as output is raised: (i) Average costs increase. (ii) Explicit costs increase relative to the value of output. (iii) Aver

  • Q : Interest-rate cost A profit-maximizing

    A profit-maximizing firm must not undertake a R&D project for which the: 1) Expected rate of return exceeds its interest-rate cost of funds. 2) interest-rate cost of funds exceeds the expected rate of return. 3) expected returns are in the distant future. 4) the e

  • Q : Location Rents in Economics Location

    Location rents are: (1) really just normal profits. (2) generated while customers bear lower transportation costs through buying from one firm over another. (3) economic interest on the capital improvements to land. (4) unrelated to population density

  • Q : Negative income tax in welfare system

    Relation to the current U.S. welfare system, a suitable negative income tax plan would: (1) be much more difficult and more expensive to administer. (2) reduce some of the current disincentives for work. (3) result in a substantial de

  • Q : Estimate the slope for price and

    When the price reduces and quantity demanded increases along such demand curve for pizza, in that case the slope: (w) is constant and elasticity falls. (x) and elasticity are constant. (y) increases and elasticity is constant. (z) and elasticity increase.