Under what conditions would a rational firm tolerate losses on production and sale of an item?

Q: Over-production results in

A: Over Production refers to the situation when the firm produces quantity of goods more than its…

Q: The data below shows a tabulation on the production of a hypothetical product:   Output (Q) Total…

A: The firms can estimate their profits by figuring out their total cost along with the total revenue…

Q: $/Q MC $30 ATC AVC 20 10 MR 50 100| 150 200 117 222

A: The graph in the figure symbolizes a with the firm that is the sole seller to the entire market,…

Q: Suppose that the bakery is obligated to produce 10 loaves of bread, but it can only choose one site.…

A: MC at first site, MC1 = 10 MC at second site, MC2 = B MC at third site, MC3 = 2B To maximize profits…

Q: In the event that a firm makes zero monetary benefit, it will leave the market over the long haul.…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: Few organizations (like restaurants) offers both goods & services. What attribute of quality the…

A: Goods are described as items or commodities that can be seen, felt, or touched i.e tangible, and are…

Q: Suppose you are an economist working in a watch factory operating in a competitive market. The cost…

A: Answer: Given, Total cost function: CT = 200 + Q2 Marginal cost function: MC= 2Q Fixed cost: FC =…

Q: true or false The rational and profit maximizing firm will choose to operate in Stage 1 or Stage 2…

A: Total product is defined as the total amount of output produced by employing given amount of input.…

Q: Distinguish between how the marketreacts to a temporary difference in prices for the same…

A: Temporary price difference: Temporary price difference causes the resources to reallocate from…

Q: A firm produces two different kinds A and B of a commodity. The daily cost of producing x units of A…

A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: Which is the first-order condition for the profit of a firm to be maximum?

A: Profts are the excess of revenues over the costs incurred by the firm. Revenue represents the income…

Q: Is US coal business environmentally friendly? describe

A: On an energy content premise, U.S. coal utilization topped in 2005, however the absolute yearly…

Q: How much should a firm sell of a particular product in order to maximize profit? What factor does it…

A: A firm should maximize profits and bring in the output level, where there would equilibrium point…

Q: Economic efficiency means using the method that produces given level of output at_

A: Economic efficiency implies utilizing the technique that creates a given degree of yield at the most…

Q: is inefficient bec

A: Efficiency implies the using the resources at best possible way. The efficient allocation is that…

Q: If a firm spends $200 to produce 20 units of output and spends $400 to produce 40 units of output,…

A: Marginal cost is the additional cost incurred to produce an additional unit of output

Q: What relationship, if any, can you detect between the facts that farmers’ fixed costs of production…

A: The law of supply established the quantity supplied of a good or service as a positive function of…

Q: Two tomato processing plants are located along a line 100 miles long. Plant 1 is at mile 30 and…

A: Given information 2 tomato processing plants located along a line 100 mile. Plant 1 is at mile 30…

Q: Northern Mexico faces the worst drought in its history. Its effects will exceed those caused by El…

A: Equilibrium is the condition of rest where there is no tendency to move further away.

Q: Which of the following is defined as the value of the resources used compared to the value of the…

A: The correct answer to the given question is Absolute Profit. Therefore, the absolute value is…

Q: If the marginal revenue of the next widget a firm produces is $100 and its marginal cost is $110, a…

A: Marginal revenue: It is earned by producing an additional unit of a good or service.

Q: $/Q $30 MC ATC 24 22 20 AVC D 10 MR 50 100| 150 200 117

A: In a market, economists and policymakers of an organization generally use a graphical depiction of…

Q: At what output rate does the firm maximize profit or minimize loss?

A: After marginal revenue exceeds marginal cost,at that output rate firms maximize profit.

Q: A company in a free competition market has marginal costs given by MC (Q) = 60 + 4.Q where Q is the…

A: A competitive market where large numbers of buyers and seller exchange homogeneous product at the…

Q: The diagram below suggests that the farmer will break-even if output is units. PhP MC ATC 24 P = MR…

A: Fixed costs are expenses that do not change independent of a company's level of output. Rent, fixed…

Q: Why do managers make bad decisions?

A: Managers and leaders are simply human, and people aren't ideal decision-makers, so anticipate a…

Q: the cost of producing a bottle of zlurp is 1.50, and the competitive suppliers sell it at this…

A: You posted an incomplete question. Please make sure you post a complete question next time. We are…

Q: What is the marginal benefit associated with producing six units of the control variable, Q 0dentify…

A: Marginal Benefit can be defined as additional benefit earned from an additional unit of output.…

Q: News reports from the western United States occasionally report incidents of cattle ranchers…

A: A profit-maximization can be understood as a process of determining the level of output, and price…

Q: What is the difference between an Internal Customer and an External Customer? Why are both equally…

A: External Customers are those customers to whom the business is having business dealing for selling…

Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…

A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…

Q: Can you explain how imcome has a negative impact?

A: The question is about the impact of income and specifically asking about the negative impact of…

Q: Which of the following activities do you think is more likely to be carried out in- house by a…

A: Manufacturers can approach specialized people to work on specialized work that the manufacturer is…

Q: How does underutilization of resources leads to Surplus? Why is it important to the organization to…

A: In an economy, surplus refers to the situation when the demand for a specific product or item is…

Q: When you calculate marginal costs, they should include: SELECT THE CORRECT ANSWER  A.the market…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It is…

Q: The correct answer to whether it should be produced is that the firm should produce in the short…

A: The decision of whether a good should be produced further depends on price and average variable…

Q: The producer is in equilibrium at a point where the cost line is

A: To find the equilibrium at a point where the cost line is :

Q: opular 777, they announced plans to redevelop their production process. Boeing hoped to extend the…

A: Opportunity cost is the cost of the next best alternative foregone. This concept arises due to…

Q: Why is it reasonable to think of normal profit as a type of cost to the firm?

A: In the short run, firms usually try to temporarily shut down their operations when the prices are…

Q: In a fishery the long-run harvest function (harvest volume) is H(E) = aE - bE2, with a, b…

A: Maximum Economic Yield (MEY) is defined as the maximum yield which is in correlation with the level…