For a firm, how does the concept of producer surplus differ from that of profit if it has no fixed costs?
Answer to relevant QuestionsSuppose that the demand curve for wheat is Q = 100 – 10p and the supply curve is Q = 10p. The government imposes a price ceiling of p = 3. a. Describe how the equilibrium changes.b. What effect does this price ceiling have ...In the Managerial Solution, would it make a difference to the analysis whether the lump-sum costs such as registration fees are collected annually or only once when the firm starts operation? How would each of these ...Using a graph, show under what condition the monopoly operates—does not shut down—in the long run. Discuss your result in terms of the demand curve and the average cost curve at the profit-maximizing quantity.When will a monopoly set its price equal to its marginal cost?Can a firm operating in the upward- sloping portion of its average cost curve be a natural monopoly? Explain.
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