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EBK MICROECONOMICS
13th Edition
ISBN: 8220106798652
Author: Arnold
Publisher: CENGAGE L
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Question
Chapter 9, Problem 5QP
To determine
Explain why the statement “one firm earning higher profits than another” is not possible in reality.
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Students have asked these similar questions
Explain why it is not economical for a firm to operate under increasing returns and negative returns.
Explain why there is no profit-maximizing level of output for a firm with increasing returns to scale. What does this imply in reality?
Why would a firm that is making loss in the short-run choose to operate rather than shut down?
Chapter 9 Solutions
EBK MICROECONOMICS
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.1 - Prob. 4STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.2 - Prob. 4STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2ST
Ch. 9.3 - Prob. 3STCh. 9.3 - Prob. 4STCh. 9.4 - Prob. 1STCh. 9.4 - Prob. 2STCh. 9 - Prob. 1QPCh. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Many plumbers charge the same price for coming to...Ch. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - According to the accompanying table, what quantity...Ch. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNGCh. 9 - Prob. 8WNGCh. 9 - Prob. 9WNGCh. 9 - Prob. 10WNG
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Similar questions
- List the conditions that must exist for a firm to make economic profits over the long runarrow_forwardWhy do a firm's profit disappear in the long run?arrow_forwardUnder what conditions would a firm decide to shut down in the short run but remain invested in the market in the long run? Explain your reasoning.arrow_forward
- Explain why the firm will still operate in the market if the economic profits are equal to zero. Use the graph to support your answer.arrow_forwardYou've been hired by Goldilocks Bakeshop to calculate measures of costs and revenue. Given the data they have provided you with (see table), you are asked to compute the following: a. Total Revenue (TR) at each Quantity (Q) level b. Marginal Revenue (MR) c. Marginal Cost (MC) d. Profit at every quantity level Quantity Price Total cost Total Marginal Marginal cost Profit revenue revenue 10 5 12 3 15 5 19 5 24 30 7 45 5. 5) 5)arrow_forwardExplain how economies of scale keep new firms from entering an industry in which firms are earning economic profits.arrow_forward
- Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this?arrow_forwardCan you explain to me why in the short run, firms only use variable cost to determine whether or not to shut down.arrow_forwardIf all assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development?arrow_forward
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