mr

From the interpret above, the profit is maximise at the point of Pe and Qe and this nerve the fringy revenue to cut the marginal exist that solving in MR=MC. In the monopolistic long-run equilibrium, the firms tend to shoot on even and this show that the single construction lodge is earning usual profit in long run in producing the Q0 end product when MR=MC. However, the companies are complaining about set about a queen-sized amount of loss of $20 billion to $30 million after the ban of guts. From the construction companies view, they exit need cover to complete their project. From this, it illustrates that concrete is suppose to be the covariant exist in construction projects. Thus to make concrete, sand is ask as sand is the raw material for the concrete product. thus whenever the price of sand growths, it will increment the be of production of concrete that increase the variable cost. The increase in variable cost (VC) indicates the average variable cos t (AVC) to increase and add together cost (TC) to increase.

Total cost (TC) increases give to average occur cost (ATC) and marginal cost (CS) to increase together. The increase for VC, AVC, TC, ATC and CS will be shown in the graph above. The main priming that makes economical loss is due to deliver entry. The effect of free entry causes the average cost and marginal cost to increase. AC1 happens to be above the demand curve and this way out to have an economic loss and its clearly shown in the graph where cost C is higher than price (P). Therefore, it is not legitimate for the company to complain that they are making losses. (Jackson & Mclver, 2007)I! f you lack to get a full essay, order it on our website: BestEssayCheap.com

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