One of the students states that this actually is beneficial to the firm because less output means more profit. Is that student correct? The key to solving the puzzle is the marginal principle.

What does zero economic profits in the long-run mean to the owner of a business operating in a perfect competitive market?

For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.50 per slice?Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label.       Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (−).   When the price is $1.50 per slice, the profit-maximizing level of output is slices per day.   Instructions: Enter your response rounded to the nearest penny (two decimal places).   At the profit-maximizing level of output, the producer's profit is: $ per day.

4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in San Francisco. The following table shows the company's total cost of production at various production quantities. Fill in the remaining cells of the following table. Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair) Quantity Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) 120 1 210 2 270 3 315 4 380 5 475 630