“In the short run, a company has to operate as efficient as possible to accomplish the profit maximization goal”. Answer the following questions: a. If achieving efficiency is not attainable in the short run, what long-run decisions should the company do? Explain your answer highlighting the pros and cons(risks) of long-run decisions. b. How do you perceive the term “Normal Profit”? Support your answer with numeric example.
“In the short run, a company has to operate as efficient as possible to accomplish the profit maximization goal”. Answer the following questions: a. If achieving efficiency is not attainable in the short run, what long-run decisions should the company do? Explain your answer highlighting the pros and cons(risks) of long-run decisions. b. How do you perceive the term “Normal Profit”? Support your answer with numeric example.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter14: Transaction Costs, Imperfect Information, And Behavioral Economics
Section: Chapter Questions
Problem 13PAE
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Question
“In the short run, a company has to operate as efficient as possible to accomplish the profit
maximization goal”.
Answer the following questions:
a. If achieving efficiency is not attainable in the short run, what long-run decisions should the
company do? Explain your answer highlighting the pros and cons(risks) of long-run decisions.
b. How do you perceive the term “Normal Profit”? Support your answer with numeric example.
c. By means of the excel file we discussed in class, use any suitable data set to describe how to
calculate the most efficient level of production
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