Why would a profit-maximizing, perfectly competitive firm continue to operate for a period of time if price

Question:

Why would a profit-maximizing, perfectly competitive firm continue to operate for a period of time if price was greater than average variable cost but less than average total cost?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: Jan 17, 2023 05:26 AM

See More Questions

Would a profit-maximizing firm continue to operate if the price in the market fell below its average cost of production in the short run?
Hospitals in City A are profit maximizing perfectly competitive firms. Hospitals in City B, on the other hand, are run by non-profit charities that try to minimize the long-run average cost of...
Would a perfectly competitive firm produce if price were less than the minimum level of average variable cost? Would it produce if price were less than the minimum level of short-run average cost?
The national mean annual salary for a school administrator is $90,000 a year. A school official took a sample of 25 school administrators in the state of Ohio to learn about salaries in that state to...
An investment has the following range of outcomes and probabilities: Calculate the expected value and the standard deviation (round to two places after the decimal point where necessary). Outcomes...
What are the main types of nonexperimental research methods?
Why is product design important to quality? LO.1
For the instant represented, point B crosses the horizontal axis through point O with a downward velocity v = 0.6 m/s. Determine the corresponding value of angular velocity ? OA of lina OA. 130 mm...
You purchased a share of stock for 25. One year later you received 2 as dividend and sold the share for 27. Your realized rate of return was
The monopolists demand curve is ______. a. Upward sloping b. Downward sloping c. Horizontal, like the perfectly competitive firms demand curve d. The monopolist does not have a demand curve.
Why would a profit-maximizing, perfectly competitive firm shut down rather than operate if price was less than its average variable cost?
The story of Altair BASIC highlights a clash between those who see software as some-thing to be developed and freely shared among computer enthusiasts and those who see software development as an...
On March 1 , Kerr Corporation issued 1 0 , 0 0 0 preferred shares for $ 1 0 0 per share. On July 1 5 , it issued an additional 3 0 , 0 0 0 shares for $ 1 2 0 per share. Each share is convertible into...
Hello, I need to calculate the break-even point in part B using the following formula: investment amount / (CLV of gold - CLV of platinum) . However, since that results in a negative value, does that...
Nervousness and depression are examples of __________ symptoms. psychophysiologic social health environmental psychological Roberta is using the structured format to present the results of his study...
Identify the stage of change the client is in and write in behavioral language at least one problem, with at least one goal and a minimum of two objectives for each goal for the client vignettes...
Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line...
(a) Develop a fractal by beginning with a square and replacing each side with a . Repeat this process twice. (b) If you continue this process, will the fractals perimeter be finite or infinite?...
Why is it necessary to study the diffusion of molecules in biological systems?
Briefly explain whether you agree with the following statement: "International trade is more important to the U.S. economy than it is to most other economies."
Briefly explain whether you agree with the following statement: "International trade is more important to the U.S. economy than it is to most other economies."
A World Trade Organization (WTO) publication calls comparative advantage "arguably the single most powerful insight in economics." What is comparative advantage? What makes it such a powerful insight?
Nitin is paid a base salary of $200 per week and commission at the rate of 3% for sales over $5000, 4% if his sales are over $8000, and 5% if sales are over $15,000. How much will Nitin earn in a...
Safa is paid a base salary of $1500 per month and a commission of 6% on all sales over $75,000. Last month, Safa's gross salary was $4440. What were her sales for the month? a$149,000 b$124,000...
Your regular hourly rate of pay is $15.86, and you are paid double time for all work on weekends and for any time over forty hours per week (Monday to Friday). Calculate your gross earnings for a...

Why would a profit-maximizing, perfectly competitive firm continue to operate for a period of time if price

Question:

Step by Step Answer:

If price was greater than average variable cost but less than average total cost a firm would be ea...View the full answer

Exploring Economics

Students also viewed these Business questions