Sir Lancelot

1. Shut deplete point is a point of operations where a firm is indifferent between continuing operations and ending down temporarily. The shutdown point is the combination of output and footing where a firm earns just enough revenue to master its shifting costs. The concept is that if a firm whoremonger uprise revenue greater or pit to its total variable costs, it can use the additional revenue to pay down its fixed costs. 2. Break-even point is the point at which gains equal losses. The marketplace price a stock must reach for election buyers to avoid a loss if they exercise. 3. Profit maximization is the (short run) emergence by which a firm determines the price and output  aim that returns the greatest profit.  4. That no participants are large enough to suffer the market power to set the price of a solid product.  5. 6. The homogeneous products are similar products manufactured by some other company, whereas differentiated products are uniquely different than those of its competitors. 7. Free presentation - The assumption that new firms are permitted to enter an industry and can do so costlessly. For this to happen, there would have to be an unlimited amount of sellers and buyers. 8. Free exit is the absence of obstacles leaving a market. For this happen, firms should not have sunk costs, which cannot be recovered by the market.

Also, the firm should not have legal issues to take of. 9. 10. a. A monopsony is a market form in which only ace buyer faces many sellers. (The government buying planes from Lockheed, Boeing, etc.) A oligopsony is a market form where the amount of buyers is small while the number of sellers in theory could be large. (Tobacco growers face oligopsony of many nates makers. b. maximum: optimium: 11. 12. 13. Classical economic theory assumes that a profit-maximizing producer with some market power (either due to oligopoly or monopolistic competition) will set marginal costs equal to marginal revenue. This... If you want to get a full essay, assemble it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .