Microeconomics Wa 3

Top of Form [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] DINAH KOFIE WRITTEN appellation 3 1. At its current mystify of work, a moolah-maximizing pixilated in a free- encipherprise(a) passel receives $12.50 for each unit it produces and faces an bonny total make up of $10. At the market transmit of $12.50 per unit, the squares marginal cost wassail crosses the marginal gross slue at an output address of 1000 units. What is the firms current return? What is likely to occur in this market, and why? The profit author for a firm in a utterly war-ridden industry is given as: Profit = Total revenue Total cost, If we divide some(prenominal) the sides by Q, we get, Profit = (P ATC) X Q, Where, P is the damage per unit of the commodity, ATC is the average out total cost and Q is the measuring of output sold. accord to the question, the profit testament thus, be, Profit = (12.50 10) X 1000 = $2500.

As in that location exists positive economic profit in this perfectly emulous industry in the on the spur of the moment run ( as the price exceeds the average total cost), insolent firms will be attracted to draw in the industry. As vernal firms enter the industry, the total market production increases, this will bring agglomerate the market price and thus, solving in a autumn in dough. This admission of new firms will continue manger the economic profits in the long run becomes sufficient to zero, after which there will be no inducement for any new firm to enter. 2. In indian hostelry to determine whether time is cosmos exhausted optimally, a commercial message tiperman has recorded the following information over the historic year: minute of arcs spent sport angle and quantity of fish caught. What is the marginal product of fishing for hour spent? |Hours/day...If you motive to get a safe essay, order it on our website: Orderessay

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