Question: explain why if the production function is such that if we double inputs output doubles, markets are competitive,and firms maximize profits economic profits should be

explain why if the production function is such that if we double inputs output doubles, markets are competitive,and firms maximize profits economic profits should be zero

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!

explain why if the production function is such that if we double inputs output doubles, markets are competitive, and firms maximize profits economic profits should be zero. i dont quite understand...

In one paragraph, explain why if the production function is such that if we double inputs output doubles, markets are competitive, and firms maximize profits economic profits should be zero.

QUESTION 1 A monopolistically competitive market has characteristics that are similar to a. both a monopoly and a competitive firm. b. a competitive firm only. c. neither a monopoly nor a competitive...

QUESTION 1 A firm operating in a perfectly competitive market is a price taker because: A. no firm has a significant market share. B. no firm's product is perceived as different. C. setting a price...

There are 10 potential entrants into the market for tomatoes. All tomato growers are identical. They face a fixed cost of 500 if they choose to enter the market and then have a marginal cost of 10...

$ solve the following questions. 5. (20) Consider the standard Mortensen-Pissarides model in continuous time. Labor force is normalized to 1. Unemployed workers, with measure u 5 1, search for jobs,...

1 of25 If government regulations significantly increase the cost of operating within a particular market, one result is that new firms are discouraged from entering the market. barriers to entry are...

hh explain111 2. Use the geometric series formula to express the present value of payments through p, T and rm, where I'm is the monthly interest rate. Plug in the numeric value for p, 7 and put this...

Plz give me the correct answer. Q1. Which of the following could shift a firm's average variable cost curve upward? A decrease in the productivity of labor A decrease in the demand for the good...

Question 1 1 pts In a perfectly competitive market (O products are differentiated. (O there are few buyers and sellers. (O outcomes are equitable. (O information is costly. (O neither sellers nor...

calculate ending inventory (variable) ($) calculate operating income (absorption) ($) calculate operating income (variable) ($) calculate total assets (absorption) ($) calculate total assets...

A team working at a cat food company had the business objective of reducing nonconformance in the cat food canning process. As the team members began to investigate the current process, they found...

4. (True/False): Local variables are created by adding a positive value to the stack pointer.

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

1. Which position would you take?

4. Is your choice different from that which you would recommend to Laura?

3. How does this fit with your preferences, career anchors, and values?