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In a long run situation what is economic profit if the profit maximizing point is 5 and the price is 8?
Wiki User
∙ 15y ago
because the Price is Right
Wiki User
∙ 15y ago
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The price charged by a profit-maximizing monopolist occurs at?
the point where the marginal cost curve intersects the marginal revenue curve
How do you achieve the profit maximizing price?
Let the demand facing a firm for its product be expressed by the following functions Q=25-0.5P Where Q=quantity and P=price, and cost function as C=25-2Q+4Q2 Compute a) Profit maximizing output, b) Justify profit maximizing output
Until when does a profit maximizing firm use additional units of resources for production?
Until it reaches the point of diminishing returns. After that point, one additional unit of resources cannot be used profitably.
What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
What is the Difference between Normal profit and Economic Profit?
In economics, normal profit is often called the break-even point. It is the level of profit where all of the costs of your business, including the salary of the CEO, are covered. When a firm has normal profit but not economic profit, the total revenue of the firm equals the total cost of the firm. However, if a firm has economic profit, total revenue is higher than total cost.
What is the point of reusing?
Waste reduction. Maximizing available supply fossil fuels.
What is the term for the point at which supply and demand are exacly equal?
This would be having exactly enough, but not too much of the product in demand. So you would be maximizing profit!
If a firm can maximize its profit by producing output where price is equal to its marginal cost in which type of market is the firm operating?
The firm is operating in Perfect markets. In perfect markets (Perfect competitions), the firm can maximize its profit when its MC is equal with its MR. And in perfect markets, usually the following condition is true: (MR = AR = P). So, in equilibrium which is also the profit maximizing point for a firm, the following condition is a must: MR = AR = P = MC.
What importance are average cost and marginal cost in economic analysis?
Average cost: determines the accounting profit maximisation and minimal point where the firm can remain profitable. Marginal cost: determines economic profit maximisation and minimal 'shut-down' point where the firm should still operate, even if at an accounting loss. Note: Average cost (AC) and marginal cost (MC) are related. The rate of change of AC is always positive when MC is positive.
In business there is no profit no loss is called?
If you mean "There is neither any profit nor any loss in business, then what is that situation called ?". Then the answer is that such a situation is typically called as the "Break-Even point", or a "no-profit-no-loss" situation. This happens when the Gross Profit that you earn from a business is exactly equal to the Fixed Expenses of the business. Using an example, suppose I sell 1000 fans at Rs. 100/00 each, which I bought for Rs. 80/00 each. Opening stock and closing stock was Rs. 15000/-. So 100000 + 15000 - (15,000 + 80,000) = 1,15,000 - 95,000 = 20,000 would be my Gross Profit, assuming there are no other variable costs, like Transportation, Freight Inwards etc. In that scenario, if my fixed expenses, like Electricity Expenses, Salary Expenses, Bank Interest etc. aggregated to Rs. 20,000/-, i.e. exactly equal to my Gross Profit, it would mean that I am at my "Break-Even Point".
DEFINE saddle point in game theory?
When looking at a horse saddle, the saddle point (i.e. the centre) is the lowest point on the structure in the longitudinal plane whilst also being the highest point on the structure in the lateral plane. Therefore it can be considered geometrically to simultaneously be a point of maximum and minumum height in space. This describes well the equilibrium situation in game theory where the agent tries tominimize the maximum possible loss. Alternatively, it can be thought of as maximizing the minimum gain (maximin).
What is the relationship between economics and anthropology?
Both study economic activities and necessities of human. Anthropology deals with the economic activities of simple societies whereas Economics studies the economic activities of complex societies. Anthropology studies economic activities with a point of socio-cultural aspect because these are the part of culture in terms of simple societies whereas the motive of profit is present in the study of Economics.
