refer to figure 14-3. when market price is p2, a profit-maximizing firm's losses can be represented by the area

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13-12-2022
Business

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refer to figure 14-3. when market price is p2, a profit-maximizing firm's losses can be represented by the area

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fawadmohd fawadmohd · Answer 1 · 2022-12-24T11:48:05+01:00

The region a) (P4 - P2) Q2 can be used to illustrate a profit-maximizing firm's losses when the market price is P2. b) (P2 - P1) × (Q2-Q1) (Q2-Q1).

b) The company makes profits, not loses, at a market price of P2. d) The firm experiences losses at a market price of P2, but the reference points in the figure don't specify what those losses are. In the short term, enterprises in a competitive industry will make a profit if the market price is greater than P4 but less than P6. b. No revenue. c. incur losses but carry on with business. d. will suffer losses and shut down. 167. Please see In a cutthroat market, a company that seeks to maximise profits can sell its goods for $7. At its present rate of production.

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