0
What else can I help you with?
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
WHAT IS production equilibrium?
Production equilibrium occurs when a firm produces a level of output where marginal cost equals marginal revenue. At this point, the firm maximizes its profit, as any increase or decrease in production would lead to lower profits. In a broader economic context, it can refer to a state where supply equals demand, resulting in stable prices in the market. This equilibrium ensures that resources are allocated efficiently in the production process.
What is the cost minimizing equilibrium condition?
The cost minimizing equilibrium condition occurs when a firm minimizes its costs while producing a given level of output. This is achieved when the ratio of the marginal product of each input to its price is equal across all inputs, meaning that the firm allocates resources in a way that each input's contribution to output is maximized relative to its cost. Mathematically, this is expressed as: ( \frac{MP_L}{P_L} = \frac{MP_K}{P_K} ), where ( MP ) is the marginal product, and ( P ) is the price of labor (L) and capital (K). Meeting this condition ensures that the firm is operating efficiently and maximizing profits.
Can a dominant firm wait out the attack of an underdog?
Usually yes... a dominant firm normally has the financial 'clout' to ride out a possible take-over from a smaller firm.
What is it called when a firm issues periodic reports?
periodic reports of a firm's financial position or operating results.
A firm can achieve equilibrium when its?
a firm can achieve equilibrium when its?
What is the equilibrium of a firm?
The equilibrium of a firm depends with the elasticity of a demand curve.
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
WHAT IS production equilibrium?
Production equilibrium occurs when a firm produces a level of output where marginal cost equals marginal revenue. At this point, the firm maximizes its profit, as any increase or decrease in production would lead to lower profits. In a broader economic context, it can refer to a state where supply equals demand, resulting in stable prices in the market. This equilibrium ensures that resources are allocated efficiently in the production process.
In long run equilibrium a purely competitive firm will operate where price is?
nn
What factors determine the equilibrium price and quantity for a perfectly competitive firm in the long run?
In the long run, the equilibrium price and quantity for a perfectly competitive firm are determined by factors such as production costs, market demand, and competition from other firms. The firm will adjust its output level until it reaches a point where marginal cost equals marginal revenue, resulting in an equilibrium price and quantity.
What is the graphical equilibrium of the firm?
The graphical equilibrium of a firm is represented at the point where its marginal cost (MC) curve intersects the marginal revenue (MR) curve. This intersection indicates the optimal output level where the firm maximizes its profit, as it is producing the quantity of goods where the additional cost of producing one more unit equals the additional revenue generated from that unit. In perfect competition, this point also aligns with the firm's average total cost (ATC) curve at its minimum, indicating long-run equilibrium.
How a firm reaches the equilibrium when output is given and when cost is given?
must be smaller thean the price effect
Distinguish between general equilibrium partial equilibrium analysis?
Partial Equilibrium, studies equilibrium of individual firm, consumer, seller and industry. It studies one variable in isolation keeping all the other variables constant.General Equilibrium, studies a number of economic variable, their inter relation and inter dependencies for understanding the economic system.
What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower price.
What does oligopolistic industries consist of?
Oligopolistic industries consist of a small number of firms that dominate the market, leading to limited competition. These firms are interdependent, meaning the actions of one firm can significantly impact the others, often resulting in strategic behavior and pricing decisions. Common characteristics include barriers to entry, product differentiation, and potential for collusion. Examples include the automotive, telecommunications, and airline industries.
In long-run equilibrium a competitive firm produces the level of output at which?
In long-run equilibrium, a competitive firm produces at the level of output where marginal cost (MC) equals marginal revenue (MR), which is also equal to the market price (P). This occurs at the minimum point of the average total cost (ATC) curve, ensuring that the firm earns zero economic profit. At this point, the firm's resources are allocated efficiently, and there is no incentive for firms to enter or exit the market. Thus, the firm operates at an optimal scale in the long run.
