Why do businesses look at the economic profit and loss when determining if they should stay in business? Why is it that firms maximize profits where MR = MC? Explain and give an example. Explain why economic profit provides a better measure of pro...
Explain why any firm maximizes profit or minimizes losses when marginal cost is equal to marginal revenue. Explain intuitively, without the use of math, why the profit of a firm is maximized where marginal revenue equals marginal costs? Explain why ...
And from what we know, the Fed is certainly not counting on – and is not trying to engineer – a major asset price plunge to fix this inflation situation. When the Fed acknowledges, way too late, that this Spandex transitory inflation is in fact ingrained, and won’t just go away ...
Why is profit not maximized when marginal benefit is lower than marginal cost? Why are economists interested in increasing marginal costs? Why is the marginal revenue curve for the individual producer in a perfect market the same as the demand curve?
Why is the marginal cost of providing a public good always zero when the marginal cost of producing it is non-zero? Why is profit not maximized when marginal benefit is lower than marginal cost? Why do firms' marginal cost curves become upward sloping, after a certain level of output has ...
Why is profit not maximized when marginal benefit is lower than marginal cost? Why does marginal cost increase as more is produced? Why does marginal abatement cost increase? Why is the law of diminishing marginal utility considered important?
Why is the equality of marginal revenue (MR) and marginal cost (MC) essential for profit maximization? Why would a monopolist never set a price on a point in the inelastic portion of the demand curve? a. marginal revenue would be negative and therefore well below the ma...
Assume that, TC = 10,000 MC = 0 TR = 70Q MR = 70 (a) What is the price of this good? (b) At what output level is profit maximized for this firm? (c) At what level of output is revenue maximized for this firm...
Accounting profit is equal to a firm's total revenue less its explicit costs, which are the direct costs of production. Economic profit, on the other hand, also factors in the firm's implicit costs, which are the tradeoffs that the firm must incur in order to pursue another opport...
Why can an oligopolist and a monopolist earn excess profit over the long run when a pure competitor and monopolistic competitor cannot? How does the monopolistic competition incur loss in business? Firms strive toward efficiency, yet, while economic efficiency is maximized in a p...