1 Answers
Call
Talk Doctor Online in Bissoy App
A firm's cost function is: C=20 - 3 Q^2 +2 Q^3 . Its demand is: P =200 - 0.25Q. Find the quantity supplied by the firm and the price charged. Is the firm making a profit?
TC = 20 - 3 Q^2 +2 Q^3, Pd =200 -0.25Q. To find the quantity supplied by the firm and the price charged we should find the point, where MR...
1 Answers 1 views
In an economy labour supply: w=20+4L, labour demand: w=50-2L. Labour is organized in a Union acting as a monopolist. Find the level of labour employed in the economy and the unemployed one
Labour supply: w=20+4L, labour demand: w=50-2L.Labour is organized in a Union acting as a monopolist. We should find the level of labour employed in the economy in the point where...
1 Answers 1 views
A profit-maximizing firm with variable labour and capital will always produce at the minimum point of the long run average cost curve. True false or uncertain
A profit-maximizing firm with variable labor and capital will produce at the minimum point of the long run average cost curve only in the long run and will receive normal...
1 Answers 1 views
How does a competitive firm determine its profit-maximizing level of output? Explain. • When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?
A profit maximizing competitive firm sets price equal to its marginal cost. If price were above marginal cost, the firm would increase its profits by increasing outputs, while if price...
1 Answers 1 views
Explain why a firm should continue to operate in the short run so long as market price is greater the firm's average variable cost at the profit-maximizing level of output.
answerWhen market prices are greater than the firm's average variable cost, firms are able to meet the costs associated with production; such as cost of raw materials, labour and operations;...
1 Answers 1 views
Explain how the firm would use the marginal product of labour to determine the profit maximizing quantity of labour, which the firm would hire?
The general rule is that firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs. The profit maximization issue can also be approached from the...
1 Answers 1 views
Explain how a competitive firm, profit maximizing firm decides how much of each factor of production to
demand?
A competitive, profit maximizing firm decides how much of each factor of production to demand based on how it will affect its profits. For instance, if a company decides to...
1 Answers 1 views
discuss weather an older skilled worker patter of expenditure and saving likely to be different younger unskilled worker
Older skilled worker pattern of expenditure and saving are likely to be different younger unskilled worker. Younger skilled worker is likely to spend a great share of his income for...
1 Answers 1 views
6.1 The goal of any firm is to maximise profit, discuss the two (2) rules of profit maximisation for a firm. (15 marks)
6.2 Discuss ANY FIVE (5) features of a firm under oligopoly. (5 marks)
6.1 The goal of any firm is to maximise profit, so the two rules of profit maximisation for a firm are: shut-down rule (firm should cover at least its variable...
1 Answers 1 views
In a perfectly compatitive market the Market Price is R20 if the last unit of output that the firm produced cost the firm R18 the firm would maximise profit if it were to?
Since the market price is higher than the marginal cost of the last unit produced, the firm could maximize profits.
1 Answers 1 views