Describe the profit maximising rule.

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Q: If your firm could set the price of the product or service it sells below the equilibrium price and…

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Q: Is the theory of profit maximization logically perfect?

A: Theory of profit maximization:- The theory of profit maximization defines the conditions of maximum…

Q: Do firms really equate their marginal cost with marginal revenue?

A: Answer

Q: With the aid of a diagram explain normal profit

A: Normal profit is a profit that implies the average revenue from selling equals the average cost .…

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A: a.   Revenue function is 110x

Q: 1. ThedemandfunctionforagoodisgivenbytheequationP=a−bQwhilethetotal cost function is TC = dQ2 + eQ +…

A: The profit is maximized where the MR= MC.

Q: . According to Joseph Schumpeter, profit is the reward for

A: "Capitalism, Socialism, and Democracy" is the most famous book by Schumpeter. He also introduced the…

Q: When does Concave profit curves occur? Explain with an example?

A: Iso quant curve refers to the curve which shows all the combination of inputs which are capable of…

Q: Prove the Hotelling Lemma through the prices of the outputs (p), when having the following profit…

A: Hotelling's lemma is a microeconomic conclusion that connects the supply of a good to the producer's…

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT

A: Ex-ante and Ex-post area unit 2 Latin words accustomed predict the come against security. Ex-Ante…

Q: C(q)=100+10q. What is the profit-maximizing level of output? What profit does the firm earn at this…

A: In economics, profit maximization is the short run or long run process by which a firm may determine…

Q: Critically analyze the shut-down rule of market.

A: The markets refer to the place where the buyers of the goods, services, and various other products…

Q: MC ATC P = MR = AR

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Illustrate curved TR and S-like TC then identify the level of Q that will enable the firm to…

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

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A: Innovation theory of profit: - it is a theory of profit given by Schumpeter according to which the…

Q: Determine the output level that will maximize economic profit.

A: Economic profit is the difference between the sum of explicit and opportunity costs from the revenue…

Q: Normal profit is called normal because

A: To find : Why normal profit is called as normal.

Q: Economic profit is

A: To find : What is economic profit

Q: what are the maximum profits this firm can earn?

A: A competitive market is a typical market that answers the demands for goods and services. A…

Q: Starting with the generalized profit function, derive the condition for profit maximizing level of…

A: Total cost is the expenditure incurred in the production of goods and services. The total cost is…

Q: Principle #4 tells us that people respond to incentives. Explain how this principle can be utilized…

A: Incentives are very important for people. In different business organizations, incentives are used…

Q: Normal profit diagrams

A: The Normal Profit can be defined as the one in which the firm earns enough revenue to cover it's…

Q: Why economic profit is negat

A: Profit: It refers to the revenue earned by the companies. With more profit earned by the companies,…

Q: Economic profit

A: There are two types of profit: Accounting Profit Economic Profit

Q: What is the profit maximizing /loss minimizing rule a firm should follow regardless of the market…

A: If pricing is less than average total cost but larger than average variable cost, a company avoids…

Q: What is profit maximizing output?

A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…

Q: Explain why so many entrepreneurs underprice their goods and services, especially when they first…

A: Underpricing goods and services while entering into the business can be seen widely.

Q: . Which is the other name that is given to the average revenue curve?

A: The average revenue curve represents the revenue per unit for different quantities of output.

Q: referring to the graph above, the profit-maximizing quantity is  a. 7 b. more than 10 c. 10 d. 0

A: Profit maximizing quantity is such a quantity where marginal revenue is equal to marginal cost.

Q: Can the given Marginal revenue be negative ?  True or false

A: According to the given question It is the amount of the marginal revenue which usually whatever will…

Q: Besides profit maximization, an Islamic firm (Muslim Entrepreneur) is supposed to take into account…

A: Profit maximization is one of the basic or important aims of any organization to earn income. An…

Q: If every comptitive firm earns abnormal profits in the short run, what do you expect will happen in…

A: Perfect competition is the market structure in which there are large number of sellers who sell the…

Q: Using the graph below, calculate the firm's profits at the profit maximizing output Price 408 384…

A: A profit-maximizing firm produces at the intersection point of MR and MC.  i.e., MR = MC is…

Q: Suppose the discount rate is 8%, the expected growth rate of the firms profit is 5%, and the firm is…

A: Given; Discount rate= 8% Expected growth rate of the firms profit= 5% Current profit= $40000

Q: You turned down a job at ABC Corp last year that would have paid you $125,000 per year and started…

A: Accounting Profit = Total Revenue - Explicit Cost  Economic Profit = Total Revenue - [Implicit Cost…

Q: What is the meaning of economic profit. Support your answer by example?

A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…

Q: RM 60 58 45 35 100 150 Quantity of output

A: The perfect competition is the type of market structure where there are large number of buyers and…

Q: Discuss why in many liability firms, the managers do not receive a fixed payment for their work, but…

A: Payment is the sum of money given in return for the purchase or completion of goods or services.…

Q: Explain why it is not sensible to close a business firm if it earns zero economic profits.

A: Zero economic profit implies that the firm would earn the same if it decides to invest in the next…

Q: Which of the following economists was an originator of the theory of imperfect competition?…

A: The correct answer with detailed explanation is as follows:-