Ecconomics Assignment To Compleate the assignment required (as attachment). It requiresto compleate a table andamswer a few questions usingdiagrams where nece

Undergraduate
Essay
Miscellaneous
Pages 4 (1004 words)
Download 0
Q1c) The relationship between the shape of the TC curve and MC curve is that the TC keeps on rising with the additions to output and similarly the cost of producing one extra unit i.e the MC also keeps on rising as more and more output is produced. The MC adds to the total cost of the firm and since MC is throughout increasing, it is adding more and more to the Total Cost of producing the output.

Introduction

when average revenue was greater than average cost. As more and more firms entered the industry the share of profit for each firm started getting less and less and may firms left the industry. Hence in the long run, there will be only enough firms in the market to break-even and a no profit, no loss situation.
Q3) The profit maximizing price will be $14 and quantity will be 4 items per minute if the firm is a monopolist. This is the price and quantity because here the monopoly profit is the highest at $32. The monopoly profit is calculated by taking the difference between the TR and TC.
The other approach by which we can prove that this is the profit maximizing price and quantity is MR>MC. At quantity 4 items per minute, MR is $8 and MC is $5. Beyond this point, increasing quantity will cause MR to be less than MC and the monopolist wont be maximizing profits. For instance if quantity is increased to 5 items per minute, MC will increase to $6 and MR will decrease to $4 and hence not a profit maximizing condition.
Q4c) Over the range of prices between $14 and $16 on average, a 1% reduction in price increases quantity demanded by 2.14%. ...
Download paper
Not exactly what you need?

Related papers

Operations Process and Projects, Assignment Questions
Nersesian (2002) defined operations management as the design, operation, and improvement of the system that create and delivers firms' products and service combinations. Moreover, it deals with the proper allocation of resources and the strategic acquisition of technology. Some managers contend that the external environment is too influential to be ignored. Therefore, operations management also…
My First Assignment as an Executive Assistant
At the same time, such responsibilities extend and uphold the interest of the company that works in collaboration with other insurance companies. Costs of services are then considered to be in conjunction with a pre-approved limit that carries an effective balance of duties and responsibilities.…
Oceangraphy Assignment
a) Upon departure from Tsawwassen, you encounter the muddy waters of the Fraser River plume extending a long way from the river mouth. About halfway across you see a sharp edge delineating the silty water and the blue waters of the Strait. Why is the plume edge so sharp, and why is there foam and debris collecting along the edge…
Ecconomics Assignment To Compleate the assignment required (as attachment). It requiresto compleate a table andamswer a few questions usingdiagrams where nece
when average revenue was greater than average cost. As more and more firms entered the industry the share of profit for each firm started getting less and less and may firms left the industry. Hence in the long run, there will be only enough firms in the market to break-even and a no profit, no loss situation.…
Assignment on Microeconomics 5 questions (350 words to each question)
Cost when unoccupied $76.00, Minus dog care $8.00, Minus security firm $10.00 the balance is $58.00. We also consider depreciation that occurs in excess when someone is living in the house, the excess depreciation is $5, so we add the balance above which gives us $58 plus $5 equals $63. On the gardener's services, because the person renting the house takes care of the gardening services his cost…
Entrepreneurship Assignment
In the past study Mr. Barringham had identified that there is a very sufficient amount of steel lefts every month and is not utilized any where which results in the disturbance in the forecasting and it happens to at least one out of five steel manufacturing firms that his family is having, which means that mostly the sales are not as high as predicted and the production is relatively more, it…
principles of business law two questions in an assignment
She later refused to pay back this sum of money to Peter. Can he sue her Would it make any difference to your answer if, instead of borrowing this sum of money to go for a boat cruise, she had actually borrowed this sum of money to go for a study tour of China organized by her school…