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Mbeya cement company, which has a rising short-run marginal cost curve is currently

operating at a loss. Mbeya cement company'schief economist says that if the price rises a
little, the output should not be increased because, if its marginal cost would rise and the
company would end up with a bigger loss on a higher volume. Should the chief executive
officer of Mbeya cement company listen to the chief economist?Why or why not
NB: Your explanations should be supposed with a graph for more detail. (5marks)
2.Economist claims that the equilibrium position of each firm in a perfectlycompetitive
industry the equilibrium can be atthepoint where D=P=MR=AR. At that point,you can
notice that the equilibrium market price, average revenue per unit is exactly equal to the
average cost per unit.
This means that AR*Q is exactly equal to AC*Q which means that TR is the same as TC.
Since cost and revenue are the same, this means that there isno profit. so why would any
producer stay in business if there isno profit to be gained from doing so?
NB: Your explanations should be supposed with a graph for more deta

3 answers

The chiefs of the company should continue to produce because as the price rise, the Level of income also rise, so there is no need for mbeya cement company limited to close their production process
Kasome madaftar yako 😂💀
Economist claims that the equilibrium position of each firm in a perfectlycompetitive industry the equilibrium can be atthepoint where D=P=MR=AR. At that point,you can notice that the equilibrium market price, average revenue per unit is exactly equal to the average cost per unit. This means that AR*Q is exactly equal to AC*Q which means that TR is the same as TC. Since cost and revenue are the same, this means that there isno profit. so why would any producer stay in business if there isno profit to be gained from doing so?
NB: Your explanations should be supposed with a graph for more deta