--%>

Profit-maximizing lumber on the average

On the average, that profit-maximizing lumber mill as in demonstrated graph is: (w) making an economic profit of regarding $0.20 (20¢) per 2×4. (x) incurring variable costs of $0.90 (90¢) per 2×4. (y) suffering an accounting loss of $0.90 (90¢) per 2×4. (z) operating at an economic profit of $1 per 2×4.

1721_Profit Maximization.png

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

   Related Questions in Microeconomics

  • Q : Asymmetic Infomation The problem of

    The problem of asymmetric information is that: A. neither health care buyers nor providers are well-informed. B. health care providers are well-informed, but buyers are not. C. the outcomes of many complex medical procedures cannot be predicted. D. insurance companies are well-informed but poli

  • Q : Increasing elasticity of the demand for

    The elasticity of the demand for labor tends to rise as there are raises within the: (1) amount of capital utilized in a production process. (2) rate of automation in an industry. (3) difficulty in substituting between different resources. (4) share o

  • Q : Uses for break-even analysis Explain

    Explain what are the several uses for break-even analysis?

  • 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 : Scarcity of good in market problem In

    In the market of papayas: (1) A scarcity exists at P2. (2) Papayas are a free good at P0. (3) Papayas are presently a scarce good. (4) Consumer’s demand prices equivalent P2 at quantity Q2. (5) Equilibrium price for papayas be P0.

    Q : Present Value of a Perpetuity When the

    When the interest rate is 5%, in that case the present value of a perpetuity which pays $500 each year beginning a year by today equals: (1) $500. (2) $1000. (3) $2500. (4) $5000. (5) 10,000. Can s

  • Q : Problem on competitive resource market

    The firm in a perfectly competitive resource market which consists of market (monopoly) power in its output market will hire the resources to a point where: (1) w = MRP. (2) VMP = MRP. (3) w = VMP. (4) MFC = w. Can someone please h

  • Q : Minimum of the average variable cost

    Short-run supply curve of a purely competitive firm’s is: (w) its MC curve above the minimum of the AVC curve. (x) the upward sloping part of its ATC curve. (y) the intersection where is MR = MC. (z) horizontal up to the firm’s productive

  • Q : Featherbedding in its hiring practices

    The summation of monopolistic exploitation across all the workers tends to raise however a firm as well operates at a more socially and economically proficient level of output and employment whenever the firm is capable to engage in: (1) Blacklisting in its dealings t

  • Q : Features of oligopoly Features of

    Features of oligopoly: Following are some principal features of oligopoly : A) A few firmsB) High degree of interdependence.C) Non-price competition.D) Entry barriers.E) Formation of cartels