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Where will A profit maximizing firm produce?
Where the marginal benefits equal marginal costs.
3 Describe the benefits enjoyed by a firm engaging in large scale production?
about Economies of large scale production
What are the differences between internal and external economies of scale?
AnswerEconomies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
Prove that profit maximizing firm will always minimise?
Profit is equal to total revenue minus total costs, if a firm wants to maximize its profit it has to lower the cost of producing a given level of output and or increase the item price if there is a willing buyer. If a firm is not minimizing costs then there exists a way for the firm to increase profits.
Saying the marginal costs are greater than the marginal benefits is the same as saying?
Marginal costs and marginal benefits are discussing the conditions for profit maximization. This statement can only have further explanation if it is clarified under circumstantial economic conditions. One of the conditions is that the firm is not a monopoly and that there is competition that keeps the price of the good at a single price. Another condition is that there are diminishing returns to labor and production. This means that resources are scarce for production so it becomes more costly to produce more because there are more constraints to resources and there is a limited labor skill pool. In a competitive market the wage is also assumed to be equal for everyone who is employed to do the same job. Thus, if the marginal costs are greater than the marginal benefits then the profit maximizing equation for a firm or individual is not in balance. The profit maximizing condition for a firm or individual is marginal costs equal marginal benefits. For example in the context of a firm, the marginal costs of producing is the wage it must pay to each extra worker it hires and the benefits are the goods that the worker produces for the firm to sell. Assuming that all workers are given the same wage, the firm should hire as many workers until the marginal revenue the worker produces (Marginal product*price) is equal to the wage. This implies price important because price determines how much revenue the worker makes from the product. If the firm is producing where marginal cost is above marginal benefit the firm is losing money and should get rid of some workers. If the firm has control over the price, like in a monopoly, then the profit maximization condition is a little different. In the case of a monopoly the demand curve is not the same as the marginal revenue curve. This is because in a monopoly the firm has to decrease price in order to sell more of the good because they are the only supplier. Marginal revenue is derived from the demand but the profit maximization condition is still marginal cost equals marginal benefits but marginal benefits does not equal the demand curve.
Purchasing bonds for the expansion of a software firm would be considered?
Purchasing bonds for the expansion of a software firm would be considered?
What is indirect exporting What possible benefits may it provide to the small firm?
Answering "What is indirect exporting What possible benefits may it provide to the small firm?"
What is a firm expansion path?
A firm expansion path shows the different combinations of inputs a firm can use to increase production. It highlights the various ways a company can grow by utilizing resources more efficiently or increasing input quantities. By following this path, a firm can optimize its production process and achieve higher output levels.
Can your uterus be firm if not pregnant?
No the uterus is not always firm normally.
Is a partner an agent of his firm?
Yes, always. Responsibility varies drastically by size of said firm but they will always be active agents of the firm, in a case or in the press
What are the benefits a firm will get when using a marketing concept?
Their goal is to get more sales.
What benefits do lawyers working in a legal firm get?
Lawyers working in a legal firm get the advantage of working with an established firm. New firm Lawyers also get the chance to work under an experienced lawyer as a sort of mentorship.
Is the firm's expansion path always straight?
The long run expansion path of a firm will not be linear when for higher levels of outputs the optimal mix of labor and capital changes. This causes the Isoquant's slope to be different at each level of output and makes the expansion path bend.Whether this exists in real life or not, I don't know. I can think of an example though. For smaller scale operations a different "type" of capital could be used that requires more labor to be utilized. Maybe a small landscaping company choses to use shovels for a small project and a backhoe for a larger project, which requires less labor.For the short run capital is fixed, so in that case the firms expansion path will always be linear.hope this helps.
What are the benefits of the Firm weights?
The benefits of Firm weights is the stability they provide when using them. Some weights can be difficult but Firm weights makes it easier to perform proper movements. For more information visit http://www.amazon.com/Cardio-Weight-Adjustable-weights-1-16lbs/dp/B0038LM6EG.
Where will A profit maximizing firm produce?
Where the marginal benefits equal marginal costs.
Is fidelity net benefits a reliable brokerage firm?
Yes, you are correct. This a very popular brokerage firm and many individuals have used it. I highly recommend this company if you are looking for a reliable brokerage firm?
Keeness to join in a new firm?
a minor cn admitted in an existing firm.He is not liable for any losses of the firm.He is admitted only for benefits of the firm.
