mr

From the graphical record above, the profit is maximise at the point of Pe and Qe and this face the peripheral revenue to cut the marginal exist that contract bridge in MR=MC. In the monopolistic long-run equilibrium, the firms tend to put down on even and this show that the single construction social club is earning usual profit in long run in producing the Q0 end product when MR=MC. However, the companies are complaining about lining a queen-sized amount of loss of $20 one million million million to $30 million after the ban of sandpaper. From the construction companies view, they get out need cover to complete their project. From this, it illustrates that cover 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 augments, it will growing the comprise of production of concrete that increase the variable cost. The increase in variable cost (VC) indicates the average variable cost (AVC) to increase and add together cost (TC) to increase.

Total cost (TC) increases endure 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 pull through 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 outgrowth 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)If you call for to get a full essay, order it on our website: OrderCustomPaper.com

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