This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Ellen's Painting Services is a perfectly competitive firm that currently paints 10 houses a month ... (Read 86 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 29, 2018
Ellen's Painting Services is a perfectly competitive firm that currently paints 10 houses a month and charges 100 per house, which is the going market price.
 
  Ellen's marginal cost is positively related with the quantity of service she provides and is currently 120. What should Ellen do to increase her economic profit? Paint more houses? Raise her price? Explain your answer.

Question 2

Economies of scale occur when the percentage increase in output
 
  A) exceeds the percentage increase in all inputs.
  B) is less than the percentage increase in all inputs.
  C) exceeds the percentage decrease in all inputs.
  D) is less than the percentage decrease in all inputs.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Hikerman221

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

Ellen should decrease the number of houses she paints until her marginal cost equals the market price. This way she will maximize her profit. As a perfectly competitive firm, Ellen is a price taker and cannot raise or lower her price without losing profit.

Answer to Question 2

A


Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jun 29, 2018
:D TYSM

Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

one month old embryo one month old embryo
Competitive inhibition Competitive inhibition
These illustrations show Ellen Craft, a slave with and without a disguise. She dressed “as a disting These illustrations show Ellen Craft, a slave with and without a disguise. She dressed “as a disting
Giorgio Vasari, The Art of Painting. Giorgio Vasari, The Art of Painting.
Participating in religious services is related to better coping skills, less severe stress ... Participating in religious services is related to better coping skills, less severe stress ...
An 1809 painting showing a wounded soldier as he lay dying of tetanus in a military hospital An 1809 painting showing a wounded soldier as he lay dying of tetanus in a military hospital
Video: Arthroscopy

For a complete list of videos, visit our video library