Questios about graphs Lab Report Example | Topics and Well Written Essays - 500 words

Questios around graphs - Lab Report ExampleSuch is the best solution rather than closing down the company. The spot of firms remains steady in neither short-run, whereby no firm can enter nor exit. When the commercialize impairment exceeds the average variable cost, the revenue generated by the firms leaveing then cover the variable cost and both(prenominal) revenue left over to offset the fixed costs. The touchstone supplied by each company will slack and remain steady to where it can sustain to operate in the conditions. Thus, the quantity supplied in the market may not meet the required choose by the customers since the quantity will neither decrease nor increase till the firms ar out of operating at loss (Caimcross 66).Q3. b) Monopoly is a market where labor is under the control of a single supply. The marginal revenue is less than the average revenue because when the monopolists wants to allot more, they must reduce the price on each unit this prevents the competiti on from happening.Q4. b) Economic profits argon driven to zero when the demand curve, as well as the average bring cost curves, are tangent to each other. In this case, the prices are comprise to average total cost and thus the firms will earn zero economic profits. The quantity of outputs in the monopolistic competition is much smaller than the quantity that minimizes average total cost. But in perfect competition, price is equal to the minimum average total cost thus the companies produce at their efficient scale. The price in monopolistic competition is greater than marginal cost since the firm has the market power unlike in perfect competition where it is equal to marginal cost.Q5. b) Oligopoly is where a few firms exist in the market. The oligopolies face the downward sloping demand curve. In this case, the rival firms cannot follow a price increase by one firm hence demand will be relatively elastic and rises in the price that will lead to a chance in total revenue of the f irm. Also, the rivals