Question: a)What should a firm do if it realizes that its marginal revenue is more than its marginal cost? b)What should a firm do if it

a)What should a firm do if it realizes that its marginal revenue is more than its marginal cost?

b)What should a firm do if it realizes that its average cost is more than its average revenue in the short run?

C) Explain the difference between economic profits and accounting profits. Support your answer with example.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Open the Customer Order Excel file in Tableau. Create a line chart showing yearly Profit. What can you conclude? Check all that apply. We can also use a pie chart to visualize the yearly profit data....

Q:

A monopolistically competitive firm will increase its production if a marginal revenue is greater than marginal cost b marginal revenue is greater than average total cost c price is greater than...

Q:

deli Question Three (25 points) 5 Define and explain the main features and the differencus between accounting profit and economic profit. Also, provide the meaning of normal profits. Question Four...

Q:

a) What should a firm do if it realizes that its marginal revenue is more than its marginal cost? (8 points) b) What should a firm do if it realizes that its average cost is more than its average...

Q:

Question Four (25 points) a) What should a firm do if it realizes that its marginal revenue 15 more than its marginal cost? points b) What should a firm do if it realizes that its average cost 15...

Q:

a)What should a firm do if it realizes that its marginal revenue is more than its marginal cost? b)What should a firm do if it realizes that its average cost is more than its average revenue in the...

Q:

a)What should a firm do if it realizes that its marginal revenue is more than its marginal cost?(8 points) b)What should a firm do if it realizes that its average cost is more than its average...

Q:

Multiple Choice Questions 1. Which of the following conditions does NOT describe a firm in a monopolistically competitive market? a. It makes a product different from its competitors. b. It takes its...

Q:

1. A contractionary fiscal policy would cause the _________. Select one: a.aggregate demand curve to the right b.short-run aggregate supply curve to the left c.short-run aggregate supply curve to the...

Q:

Please use the graph below to answer the next THREE questions. The gr c) The monopolist charges a price that exceeds marginal cost. 1. (4 pts.) Please answer the questions below this table. depicts a...

Q:

Multiple-choice questions #3 11.Which of the following are true regardless of market stmcture a} marginal revenue is equal to marginal cost b} marginal revenue is below demand c} average variable...

Q:

You need to make an adjustment to your price-weighted index. Suppose Lowe's announced a 4:1 stock split after market close on day t=1. What new divisor will you use on day t=2? Qo(mill) P 8,676 25.18...

Q:

The neutron separation energy is defined as the energy required to remove a neutron from the nucleus. Obtain the neutron separation energies of the nuclei Ca and Al from the following data: =...

Q:

Evaluate the integral. 4 x 2 ( 3 + 4 x 2 ) 7 d x

Q:

A 15cm x 20 cm printed circuit board whose components are not allowed to come into direct contact with helium for reliability reasons is to be cooled by passing cool helium through a 20cm long...

Q:

The top surface of the passenger car of a train moving at a velocity of 65 km/hr is 2.8m wide and 8m long. The top surface is absorbing solar radiation at a rate of 180W/m2 and the temperature of...

Q:

Consider laminar flow of a fluid over a flat plate maintained at a constant temperature. Now the stream velocity of the fluid is doubled. Determine the change in drag force on the plate. Assume the...

Q:

Go to http://bostonpizza.com/en/franchising/success-stories and view the videos shown. Do you think that videos are effective in attracting new and potential franchisees to Boston Pizza? Why or why...

Q:

Selected ratios for three different companies that operate in three different industries (merchandising, pharmaceuticals, utilities) are reported in the table below: Ratio Co. A Co. B Co. C Gross...

Q:

RAJIV GANDHI CASE is delayed, it runs the risk of the state failing in Article 14, which says that the State shall not deny to any person equality before the law or equal protection of the...

Q:

2. Take as your starting point a conflict you experienced recently with a close friend. Try to go through the communication that took place and answer the following questions: a) What was the main...

Q:

2. In this chapter, the reader should reflect on the following concepts: Differences, relationships, processes, patterns, contexts, symmetrical rela-tionships, complementary relationships, linear...

Q:

1. Discuss the following statement: Everything is seen, heard and said by a subject, and accordingly is subjective.