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Assuming there is no excess capacity what is the minimum acceptable price?
Wiki User
β 12y ago
It depends what you mean, buying or selling.
Selling the minimum without going into the red is the break even price.
Wiki User
β 12y ago
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What does it mean if a firm has excess capacity?
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
What is excess capacity in economics and its graph?
Excess capacity is producing more than the market needs and are seen often in horizontal mergers due to supply increasing faster than the increase in demand.I can't draw a graph on here I believe, but firms expanded so that they had the capacity to produce at Qcapacity, but market demand and many firms forced the firm to produce at Q' (higher LRAC) leading to excess capacity.
Why do monopolistic competitor operate at excess capacity?
Monopolistic competitors operate at excess capacity to discourage new firms from going into the industry, i.e, to deter entry. Operating at excess capacity means a firm produces large quantities of goods and at lower prices. This makes it difficult for newly established firms to compete, thus ensuring that the incumbent firm maintains its monopolistic position in the market.
HOW EXCESS SUPPLY IN THE MARKET FOR BANANAS?
excess supply in the market for bananas
How do you eliminate excess demand and excess supply in equilibrium?
Price is one way to eliminate excess demand and excess supply. Once prices start to rise, the amount of people purchasing or needing certain products go down.
What does it mean if a firm has excess capacity?
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
What is the minimum acceptable transfer price for a division with no excess capacity where the variable cost per unit is 9 fixed cost per unit is 11 selling price per unit is 25 bought at 22?
25
Why don't oil refineries operate at full capacity?
In the early 2000's there was almost no excess global refining capacity. The reason for the lack of excess capacity was that the industry had not added any capacity since the 70's. The lack of added capacity was due to the fact that since the 70's a huge amount of excess capacity had existed. It took almost 20 years for demand to catch up with excess capacity and the refining industry suffered low profits from the 1970's until 2002. When the demand caught up new refineries were built and they are beginning to come on line and are the reason for the increase in excess capacity. The capacity of a refinery to produce oil is increased with new innovations in the refining process and the removal of bottle necks within the system. Excess capacity is built into refineries to meet future demand. Assuming that oil refineries don't operate at full capacity to make more money and drive up prices is a false assumption. History shows that the profit margin for a refinery decreases as excess capacity increases. The global oil industry's growing challenges to increase crude production to meet demand and fill excess capacity is a much more likely source of high prices.
What is the minimum acceptable transfer price for a division with excess capacity where the variable coat per unit is 8 fixed cost per unit is 5 and selling price per unit is 30?
The minimum acceptable transfer price for a division with excess capacity would be the variable cost per unit, which in this case is 8. This is because the division has excess capacity and is able to produce the goods at a lower cost than the selling price, so it would make sense to transfer the goods to another division or sell them to an external customer at a price that is at least equal to the variable cost per unit. If the division were to transfer the goods to another division or sell them to an external customer at a price that is lower than the variable cost per unit, it would not cover its variable costs and would be operating at a loss. On the other hand, if the division were to transfer the goods to another division or sell them to an external customer at a price that is higher than the variable cost per unit, it would be able to cover its variable costs and potentially earn a profit. It's worth noting that the fixed costs of the division are not relevant to the minimum acceptable transfer price, as these costs have already been incurred and cannot be avoided. The division would need to consider the fixed costs when determining its overall profitability, but they do not affect the minimum acceptable transfer price for the goods. My recommendation: ππ π½βο½οΌ°Ε://Ε΄Οπ.ΰΉΞΉαΆΞ―ππ£Οπ»α΄ββΉ.Δπο½/π£β¬πΞΉβ/βΈββ·βΊοΌοΌ/ππ·πππΚ·ππ¨πΓο½π¬/ β―π
What does offers in excess mean?
It means"offers greater than..." e.g. a property is advertised for sale at "Offers in excess of 150,000" means that 150,000 is the minimum price acceptable. People place bids higher than 150,000. This is the standard way of selling property in some countries e.g. Scotland.
Which basic production planning strategy will build inventory and avoid the costs of excess capacity?
Which basic production strategy will build inventory and avoid the costs of excess capacity
Under which market condition do firms have excess capacity?
duopoly
What is mean by capacity cushion in terms of operation management?
Capacity cushion, which is an amount of capacity in excess of expected demand when there is some uncertainty about demand.
Is excess a noun or adj?
The word 'excess' is both a noun and an adjective. Examples:Noun: We have an excess of twelve students over capacity for this bus.Adjective: Please call for an additional bus for the excess students.
Which situation best illustrate the concept excess demand?
Currently, due to rumors of gun control legislation, there is an excess demand for high capacity magazines. You can see the results of excess demand by searching for high capacity magazines for sale. Every venue that offers them for sale has nothing in stock. Places that do have them in stock are asking extraordinary prices for them. Therefore, the example of excess demand of high capacity magazines illustrates that excess demand causes scarcity of product and inflation of price. Conversely, excess supply will likely cause decreased prices.
What is excess capacity in economics and its graph?
Excess capacity is producing more than the market needs and are seen often in horizontal mergers due to supply increasing faster than the increase in demand.I can't draw a graph on here I believe, but firms expanded so that they had the capacity to produce at Qcapacity, but market demand and many firms forced the firm to produce at Q' (higher LRAC) leading to excess capacity.
Why does the head pressure rise when the evaporator has an excess load?
the system capacity is max out
