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They are guaranteed a profit.
What else can I help you with?
A Is the market supply curve for a product more or less price elastic than the supply curve of one of the firms in the market Why?
The market supply curve of a product is more price elastic than the supply curve of one of the firms in the market. The reason is that for any given price change, the market quantity response reflects the change in output of all the firms in the market.
What is the lowest point on a firms short run supply curve?
The minimum is price=average cost below this price supply=0
Going rate pricing?
All firms do have the power to fix a price ,but insteadof doing so,in a competitive market situation firms fix a price which is equal to the average price charged by all firms in an industry,ie,it collects all the prices firms with same product and compute the average.
What is the price of iron ore in china?
Posted pricing from the big three is $170 per ton. However, there are some supply contracts in place, some volumes discounts and inflated estimates. Assume $140-160
What factor affect price?
What factors usually affect pricing?
Commodity brokers use forward and futures contracts for what reasons?
The seasonal nature of many commodities would lead to wide variation in supply and price without these contracts.
Is the OPEC fair with pricing?
OPEC charges what the market will allow. It regulates the price by regulating the supply.
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
What happens to the aggregate supply curve as the price level increases?
Firms have more of an incentive to increase output
How is a perfectly competitive firms marginal cost curve related to its supply curve?
a perfectly competitive firms supply curve will be the portion of the marginal cost curve which lies above the average variable cost curve (AVC)..this will be due to the firms unwillingness to supply below the price in which they could cover their variable costs
What is the differences between cost-based pricing or market-based pricing?
Cost based pricing uses the costs that were invested in producing the goods. In market based pricing, supply and demand are the key factors that determine price.
What is the pricing strategy that is needed when you are trying to maximize revenue when capacity is a factor?
increase price, decrease supply
