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Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do
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Explain why it is sometimes difficult to apply the MR equals MC rule in actual business situations?
to savewv time
List and describe the characteristics of a perfectly competitive market?
There are multiple characteristics which correspond to an ideally competitive market. These are a rule of law and contracts enforcement, competition through multiple merchants, market integrity against anti-competitive behaviors, and consumer confidence.
Explain why monopolistically competitive firms frequently prefer non price to price competition?
The monopolistically competitive firm frequently prefers nonprice competition to pricecompetition, because the latter can lead to the firm producing where P = ATC and thus makingno economic profit or, worse, producing in the short run where P < ATC and thus losing money,with the possibility of eventually going out of business.Nonprice competition, on the other hand, if successful, results in more monopoly power: Thefirm's product has become more differentiated from now less-similar competitors in the industry.This increase in monopoly power allows the firm to raise its price with less fear of losingcustomers. Of course, the firm must still follow the MR = MC rule, but its success in nonpricecompetition has shifted both the demand and MR curves upward to the right. This results insimultaneously a larger output, a higher price, and more economic profits.
Explain why the P equals MC rule is the same as the MR equals MC rule for perfectly competitive firms?
Perfectly competitive firms are price takers. This means that they can sell as much or as little as they want, but only at the going market price. When this happens, the market price is the same as their marginal revenue. Thus, P=MC is the same as P=MR.
In a business what is the shut down rule in the long run?
need to answer a question conserning shut down rule
What is a general rule used to explain a specific event is called?
A general rule used to explain a specific event is called?
What is 4cs in marketing rule?
Consumer, Competition, Communication, Cost.
What is 4c marketing rule?
Consumer, Competition, Communication, Cost.
Can you explain the shut down rule in perfect competition?
Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do
How do you find the rule in a numerical pattern?
explain how to find the rule in a numerical pattern
What eliminated France as competition for rule in India?
the seven year's war
Something that helps to explain the word rule?
Not clear if this is about the word ‘rule’, or about something called the word rule.
What is the rule that could explain what makes a sentence grammatically correct or not in Spanish?
rule that could explain what makes a sentence grammatically correct or not before the noun."
Explain why united kingdom follow the rule of law?
yes they do follow the rule of law.
What eliminated france as competition for rule of india?
The main thing that eliminated France as competition for rule of India was the literacy tests which were used in voting. The Jim Crow laws also played a significant role in this elimination.
Does Owen come back in tda?
Owen returns to the competition in the episode Rock n' Rule, making him the first male in the entire series to return to the competition.
What are the release dates for The Golden Rule - 2012 I?
The Golden Rule - 2012 I was released on: USA: 12 October 2012 (48 Hour Film Competition)
