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Until when does a profit maximizing firm use additional units of resources for production?
Wiki User
∙ 10y ago
Until it reaches the point of diminishing returns. After that point, one additional unit of resources cannot be used profitably.
Wiki User
∙ 10y ago
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What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
What happens to resources when a pure monopoly is at the profit maximizing output?
The economy is at equilibrium as both government suffer insufficient funds
How do capital resources increase production for a company?
Capital resources equal more goods and services produced in the future, for a higher profit. This is how having more resources increases production and profit in the long term.
How do you find profit maximizing level of output?
The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
What is maximizing corporate profits?
Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.
A profit maximizing monopolist with a positive marginal cost of production will always?
Produce in the elastic range of the demand curve
What happens to resources when a pure monopoly is at the profit maximizing output?
The economy is at equilibrium as both government suffer insufficient funds
How do capital resources increase production for a company?
Capital resources equal more goods and services produced in the future, for a higher profit. This is how having more resources increases production and profit in the long term.
What is the profit maximizing decision a perfectly competitive firm makes in the short run and explain why this firm can make profits in the short run but not in the long run?
A perfectly competitive firm maximizes profit in the short run by producing the quantity where marginal cost equals marginal revenue. In the short run, firms can make profits due to price fluctuations and temporary market conditions, but in the long run, new firms can easily enter the market, increasing competition and driving down prices to the point where economic profits are reduced to zero.
How do you find profit maximizing level of output?
The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.
Under which economic system are resources devoted to production for use or need rather than production for profit?
socialism
What is Corporate profits?
Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.
How do you calculate the profit maximizing output level given a total revenue and total cost function?
how to calculate profit maximizing water level under quadratic cost function
The basic problems of scarcity and allocation of limited resources are solved by production for use or need rather than production for profit.?
Socialism (A+)
What do you mean by maximize profits?
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
