Costs

Running head : COSTS[Author][University]Answer 1One condition to check if whether businesses operating in an perfectly belligerent market are : if the price of the vender is greater than its mediocre the physical process if the price of the good is bear upon to the average costs , the seller would be indifferent on whether to continue or to bar down the business operation lastly , if the price of the good strike to less than the average to shut down the operation of the business (Rodda , 2004 . Now considering the supra conditions , since60 and ATC 62 therefore , it is advisable for Claude s Copper Clappers to shut down their operation [d] . The said company cannot use the system of increasing the make in to improve their pay / harm situation since they operate in a perfectly competitive market . Same goes with reducing the output , prolong authentic level of output and raising the prices collectible to the small portion of the share of each businesses to the priceAnswer 2MR partial differential coefficient of TR / partial derivative of QWith the above formula for computing peripheral revenue , the development in the affect for wheat would both extend [a] the marginal revenue and profit maximizing level of output . When the demand of wheat increased the farmers would have to produce and sell more than goods . This scenario increases the TR of the farmers . Since MR and TR are positively related an increase in TR would definitely raise MR .

On the other hand , to compute for the profit maximisation of the farmers the formula would beProfit max TR - TCWe can clearly regard that , just like MR , profit maximizing level is overly positively related to TR therefore , an increase in the TR due to the raise in the demand of wheat would surely increase the profit maximizing level of wheatAnswer 3P 15 13 11 9 7 5 3 1QD 1 2 3 4 5 6 7 8MR 15 11 7 3 - 1 - 5 - 9 - 13For a perfectly competitive market , the profit maximization level of output would be : MR MC , and based from the postpone above , the only output that gave a MR 7 is equalise to 3 units . In this regard , it is during the production of the 3rd output that take holds the potent maximum profit . The general rule universe used in deciding the level of output that would give the maximum profit is MR MCAnswer 4Normal profit break-even condition FC VC 65 invoice profit TR - TC 100 - 65 35Economic profit Normal profit - report profit 65 - 35 30 [f]Investors treat public profit as a cost for them since it is the amount that they should maintain in to preserve their current level of investment . Accounting profit is the amount of money generated by the operation of the firm after subtracting all the costs of inputs from the it would give us the stinting profit of the firmAnswer 5Price Quantity...If you want to get a full essay, direct it on our website: Ordercustompaper.com

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