--%>
Assignment Help - homework help

Price charging by minimizing average costs

See a monopolist which cannot price discriminate but that maximizes profit. When this firm produces the level of output where is average cost at its minimum that will charge a price: (i) equal to marginal cost and generate zero economic profit. (ii) equal to marginal cost and generate a positive economic profit. (iii) above marginal cost and minimize the losses this cannot avoid. (iv) above marginal cost and produce a positive economic profit.

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

   Related Questions in Microeconomics

  • Q : Cost of inputs in Determinants of demand

    I have a problem in economics on Cost of inputs in Determinants of demand. Please help me in the following question. The entire given are determinants of demand apart from. (i) Taxes and preferences. (ii) The cost of inputs. (iii) Price expectations.

    		•
  • Q : Short-run and long-run average total

    A firm generating where MC = SRAC = LRAC operates at the minimum point of its: (w) short-run and long-run average total cost curves. (x) long-run total cost curve. (y) total physical product of labor curve. (z) maximum profit curve.

    Q : Problem on market demand for chewing gum

    The market demand for the chewing gum is as: QG = 300 – 40PG – 8PS + 0.05IHere:QG = Quantity of gum demandedPG = price of gumPS = price of sodaI = average inc

    		•
  • Q : Problem on monopolistically competitive

    Refer to the given diagram for a monopolistically competitive firm give the answer of following question. Long-run equilibrium price will be: 1) above A. 2) EF. 3) A. 4) B.

    Q : Marginal Benefits The marginal

    The marginal advantage/profit to you of a usual activity in which you engage tends to: (i) Raise as long as you enjoy the activity. (ii) Eventually reduce as you do more of activity. (iii) Stabilize when the market price of doing the activity stay constant. (iv) Impro

    		•
  • Q : Higher interest rate in funds A higher

    A higher interest rate is probably to be a consequence of: (1) lower expected profitability to investors. (2) new tax breaks onto interest income. (3) weakening preferences for current income over future income. (4) increased preferences for recent co

    		•
  • Q : Economic efficiency of purely

    Most economists favor purely competitive markets since they tend to as: (1) economies of scale. (2) large profits. (3) mutual interdependence. (4) corporate organizations. (5) economic efficiency. Hello guys I want

    		•
  • Q : Define Visible items in BOP Visible

    Visible items: All kinds of goods that are exported and imported are termed as visible items. These are visible as such are made up of some matter or material. The record of such items is obtainable with the ports. Illustrations: Tea, Jute items, Petr

    		•
  • Q : Problem on diminishing returns I have a

    I have a problem in economics on Problem on diminishing returns. Please help me in the following question. The principle of diminishing marginal utility is a contrast of the law of: (1) Comparative consumer benefit. (2) Diminishing returns. (3) Effective explanation.

    		•
  • Q : Normative Standards for Distribution

    Relative to a requirements standard for distributing income, in that case the adoption of an equality standard would most likely tend to be: (w) unarguably fairer. (x) less bureaucratic. (y) more harmful to work incentives. (z) clearly less fair.

    		•