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When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
How does a firm calculate marginal cost?
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
IF regulation imposes marginal cost pricing on natural monopoly then the monopoly will?
When the regulating agency forces this firm to set its price at marginal cost, we havemarginal cost pricing. MONOPOLY WILL LOSS. The whole point of government involvement here relates to the fact that regulators wanted to make things more efficient. However, achieving this particular type of efficiency causes the firm to eventually exit the industry -- leaving consumers with nothing.Therefore, to prevent the firm from leaving, our regulator must also allow the monopolist to cover her losses. One way to do this is by subsidizing the monopolist the amount of her loss.
When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
If marginal revenue is greater than marginal cost the firm should?
If MR is greater than MC, the firm should increase their production. The ideal amount of production is determined by allowing the marginal cost to equal the marginal revenue.
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
How does a firm calculate marginal cost?
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
Is it profitable for a firm to continue employing additional resources as long as?
Marginal revenue product = marginal cost
IF regulation imposes marginal cost pricing on natural monopoly then the monopoly will?
When the regulating agency forces this firm to set its price at marginal cost, we havemarginal cost pricing. MONOPOLY WILL LOSS. The whole point of government involvement here relates to the fact that regulators wanted to make things more efficient. However, achieving this particular type of efficiency causes the firm to eventually exit the industry -- leaving consumers with nothing.Therefore, to prevent the firm from leaving, our regulator must also allow the monopolist to cover her losses. One way to do this is by subsidizing the monopolist the amount of her loss.
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply 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 marginal private costs?
The marginal private cost shows the cost associated to the firm in question. It is the marginal private cost that is used by business decision makers in their profit maximization goals, and by individuals in their purchasing and consumption choices.
