Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle? Concept Introduction: In perfect competition , there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit. Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

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Answer 1

Question

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

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Answer 2

Question

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

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Answer 3

Question

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

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Answer 4

Question

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

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Answer 5

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

Answer 6

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

Answer 7

Chapter 23, Problem 15P

To determine

Take a look at the below graph. This graph uses the data from the below table which indicates that the 5area of the blue rectangle displaying hourly economic profits of $5 per period. What prevents this firm from continuing to produce the same number of units per hour but raising the price that it charges for each unit in order to enlarge the area of the profit rectangle?

Concept Introduction:

In perfect competition, there is freedom of entry and exit. If there is a higher demand for a particular commodity, new firms will enter into the industry. These will result in an increased production of that good and thereby leads to a fall in the market price of the particular commodity. In the long run, firms may leave the market. Firms will leave the market when they get a negative economic profit.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which describes as the opportunity cost of anything.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 23 - Prob. 23.1LO Ch. 23 - Prob. 23.2LO Ch. 23 - Prob. 23.3LO Ch. 23 - Prob. 23.4LO Ch. 23 - Prob. 23.5LO Ch. 23 - Prob. AFCT Ch. 23 - Prob. BFCT Ch. 23 - Prob. CFCT Ch. 23 - Prob. 1CTQ Ch. 23 - Prob. 2CTQ

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