Describe Break Even Price
Describe Break Even Price in Economics for a purely competitive firm?
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Break Even Price (PBE): The “break even price” for purely competitive firm is the minimum price at which the firm can function and not lose money. Any prices lesser than this is a price at which, even when the firm functions in the best possible manner, it will still create economic losses. The price more than this is one at which the firm can create a positive economic gain as long as it makes excellent decisions. The break even price is at minimum, point on the average total cost (or ATC) curve, or PBE = minimum ATC. Note that at the break even price the firm might be making “normal gains” or the payment to entrepreneur. Economists count “normal gains” as part of the net costs of production as they compensate to the entrepreneur to cover the opportunity costs of risk, time and effort place into the business.
Whenever the market for the good is in equilibrium, this signifies that the: (i) Demand and supply are equivalent. (ii) Tax wedge is perfectly offset by the government advantages. (iii) Differences among demand prices and supply prices equivalent profit per unit. (iv)
Can someone please help me in finding out the accurate answer from the following question. According to most conventional theories of labor market: (1) The supply curve of labor is positively sloped as higher salaries attract the extra workers to the labor market. (2)
When the equilibrium in the figure shown below move from point a to point b, a reduction in demand is experienced merely in the market illustrated in: (1) Panel A. (2) Panel B. (3) Panel C. (4) Panel D. Q : Example of a vertical merger An example An example of the vertical merger would be: (i) Merging the Oscar Myer hot dog Company with Wrangler Jeans Company and Aquafina Water Company. (ii) The log cabin architecture firm merging with the logging company and construction company. (iii) Merger between Wachovia
An example of the vertical merger would be: (i) Merging the Oscar Myer hot dog Company with Wrangler Jeans Company and Aquafina Water Company. (ii) The log cabin architecture firm merging with the logging company and construction company. (iii) Merger between Wachovia
The Outlaw Scooter Club bought 170 motor scooters while the price was $875 every, but ordered only 30 while the price soared to $2,125. Then for scooters group's price elasticity of demand is: (i) 0.42. (ii) 3.36. (iii) 0.84. (iv) 1.68. (v) 4.20.
This is socially undesirable for a monopolist to produce where the price exceeds to marginal social cost [P > MSC] since: (w) resources are allocated inefficiently since too small is produced. (x) too many resources are used and production is exces
Excess demand: If AD > AS at the full employment level. Then it is termed as Excess demand.
When you compute cross-elasticity of demand, what are you trying to find out? What do a negative coefficient and a positive coefficient imply?
Extensively accepted normative objectives for microeconomic comprise: (1) full employment and balanced economic development. (2) a stable price level and maximum purchasing power. (3) efficiency, equity and freedom. (4) job security and equality within the distributio
Refer to the following diagram. A decrease in supply is illustrated by a: A) move from point x to point y. B) shift from S1 to S2. C) shift from S2 to S1. D) move from point y to point x. Discover Q & A Leading Solution Library Avail More Than 1442380 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1946039 Asked 3,689 Active Tutors 1442380 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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