maximizing the difference between total revenue and total cost
is producing where price exceeds marginal costs
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
if competative industry z is making substantial economic profit, output will:
is earning a profit
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.
is producing where price exceeds marginal costs
i really don't know
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
if competative industry z is making substantial economic profit, output will:
is earning a profit
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
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If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
The concept of competitive advantage is as important for non-profit organizations as it is for profit organization?