Q: Explain by giving example the meaning of Economic profit
A: Economic profit refers to the difference between the revenue received through sales of a product and…
Q: 4. The profit function of Firm GG is n=-2q2+280q. What is the profit maximizing quantity?What is the…
A: Given: Profit function, p=-2q2+280q
Q: 6. La Bella Pizza can produce a pizza for a marginal cost of $2. Its price o a pizza is $15. a.…
A: a.No, La Bella Pizza could not make a larger economic profit by offering a second pizza for $5. In…
Q: what is the profit or loss at the profit maximizing output?
A: Profit maximizing level is where MC= MR. This is at P= $40 and Q= 200. Given ATC is less than…
Q: 6. Problems and Applications Q11 Manuel, Shen, and Antonio run the only saloon in town. • Manuel…
A: i hope you got the concept. if you feel like having any doubt in any part of the question then feel…
Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?
A: Given that the market structure is monopolistic competition, the profit maximizing condition is MC=…
Q: QUESTION 13 To find out the profit maximizing quantity we look at the level of quantity where O…
A: Question 4 : The correct option is C that is then they should keep the quantity they are producing…
Q: Using graph, explain when the firm maximizes its profit under perfect completion?
A: The total revenue is calculated by the price of the good times the quantity of goods purchased. The…
Q: profi
A: Profit maximization is the process which maybe used in short or long run which helps a firm in…
Q: Calculate Kenji's marginal revenue and marginal cost for the first seven teddy bears he produces and…
A: Marginal revenue is calculated as the ratio of change in total revenue to change in quantity.…
Q: 4-Identify the profit making or loss-making aspects of the following diagram and discuss your…
A: A firm charges a specific cost for producing a specific good. It will charge a price at a higher…
Q: MC АТС 20 -MR 16 30 40 Firm What is the amount of profit for the firm in the graph?
A: A Firm will be in equilibrium when its profit is maximized or loss is minimized. For this following…
Q: Why do profit maximizing firms always produce output at MC = MR? Draw graph and use example
A: A monopoly is a market structure where there are only one seller and many buyers. The seller has…
Q: 3. Rudy Chappa owns an internet running goods website. He sells a single type of shoe: ‘Nike elite'…
A: Profit maximization level of output is the optimum output produced at the point where marginal…
Q: 3 P-200x -3x² - 2xy + 150y-2y Find Px Pxx, Py, Pyy Pxy - Pyx Set Px = Py to Fino x Ano y Pxx Pxy…
A: Introduction Here we have given a quadratic equation of profit. P = 200x - 3 x2 - 2xy + 150 y - 2 y2…
Q: what is the profit maximization rule and how we can draw the graph and comments of MR AR curve
A: Profit maximization is the parameter by which a firm determines the price, input and output levels…
Q: What is profit
A: Profit = Revenue - costs
Q: Illustrate curved TR and S-like TC then identify the level of Q that will enable the firm to…
A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…
Q: The profit when the firm is profit maximizing is _______
A: The practice of maximizing the gap between revenue and total costs is known as profit maximization,…
Q: Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly…
A: Total revenue refers to the product of price and quantity . Profits are maximized at the point where…
Q: 1. Profit maximization using total cost and total revenue curves Suppose Juanita runs a small…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: Explain the difference between economic profit and accounting profit.
A: Economic Profit: In economic profit explicit cost is subtracted from revenue. It also include…
Q: S an amount Rian's profit is maximized when they produce a total of rompers. At this quantity, the…
A: Total cost refers to the expenses incurred in the production of goods or services.Total revenue…
Q: MC Revenue and cost (dollars per unit) MR $40 ATC AVC e 24 20 14 12 8 100 150 200 Quantity 55
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Suppose Felix runs a small business that manufactures frying pans. Assume that the market for frying…
A: Total Revenue (TR):Meaning: Total Revenue is the total income a firm receives from selling its goods…
Q: derive an expression for teddy's profit function
A: Profit can be defined as the difference between the revenue and costs of the products.
Q: Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, and plot…
A: Introduction Here Nick runs a small business that manufactures shirt. Shirt market is a competitive…
Q: 3. Profit maximization using total cost and total revenue curves Suppose Jayden operates a…
A: Person Jayden's profit is maximized when he produces 1. 6 units of output, where Marginal Cost is 2.…
Q: Amazon May be Sprinting into Athletic Apparel People increasingly wear their workout clothes outside…
A: In economics, demand refers to the consumer's willingness and ability to purchase a good or service…
Q: B4.i Last year, JJ left a job that pays $60,000 to run his own bike-repair shop. J's shop charges…
A: Given, Income forgone after leaving job = $60,000 Price per repair = $65 Number of repair = 3000…
Q: 30 8 COSTS AND REVENUE (Dollars per shirt) 25 15 10 10 0 4 0 1 2 3 4 5 QUANTITY (Shirts) 6 7 8…
A: Marginal cost refers to the additional cost incurred by producing one more unit of a good or…
Q: 3. Profit maximization using total cost and total revenue curves Suppose Sam runs a small business…
A: This can be defined as a concept that shows the cost incurred in the production process of a…
Q: Select the appropriate label of each profit equation component on the graph. Note: On the graph…
A: Profit is the financial gain or positive difference that remains after subtracting all expenses,…
Q: The condition for profit maximization in the short run is to equate short-run marginal cost with…
A: The total revenue earned by a firm operating in a market is the sum of all payments received from…
Q: Sleek sneakers is one of many firms in the market for shoes. a. Assume that sleek is currently…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 2. A firm has a cost function of C = 1000+ 20Q + 1/10Q² and has a demand function as shown in the…
A: The cost function is the mathematical relationship between the output and the cost of production. It…
Q: Draw , label , and briefly explain the following diagrams. You are welcome to write any accompanying…
A: Profit maximization is the main aim of the firms to run the business . profit is equal to total…
Q: TR MR MC PROFIT 14 2 3.00 12 4 3.00 10 3.00 8 3.00 6 10 3.00 4 12 3.00 2 14 3.00 3. IF YOU ARE THE…
A: The total cost is the sum of fixed cost and variable cost of factor of production in the short-run.…
Q: 24.Use the graph to answer the question Where on the graph would firms be experiencing diseconomies…
A: Ans. Diseconomies of scale are a situation of cost disadvantage when a firm changes its size of…
Q: Calculate Raphael's marginal revenue and marginal cost for the first seven shirts he produces, and…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: q 0 1 2 3 4 5 6 7 8 9 10 tr 30 58 84 108 130 150 168 184 198 210 tc 10 23 30 41 56 75 98 125 156 191…
A: b) The assessment of the associated costs and potential rewards of specific firm operations or…
Q: 3. Profit maximization using total cost and total revenue curves Suppose Darnell runs a small…
A: The market price is given as $20. The total cost is given as QuantityTotal…
Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…
A: Perfect competition this is a type of a market structure.
Q: Calculate Theo's accounting profit
A: Profits are the company's earnings after all costs have been taken into consideration. These costs,…
Q: Calculate Rian's marginal revenue and marginal cost for the first seven phone cases they produce,…
A: Marginal Cost: Marginal cost (MC) is the cost of producing one additional unit of a good or service.…
Q: Explain by giving example the meaning of Economic profit
A: An economic profit or loss is the difference between the total revenue earned by the firm through…
1.Describe the profit maximising rule.
Step by step
Solved in 2 steps
- Calculate Iyana's marginal revenue and marginal cost for the first seven rompers they produce, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. COSTS AND REVENUE (Dollars per romper) 40 35 30 25 20 15 10 0 0 1 2 3 4 5 6 7 8 QUANTITY (Rompers) Marginal Revenue Marginal Cost ? Iyana's profit is maximized when they produce a total of is $ , an amount rompers. At this quantity, the marginal cost of the final romper they produce than the price received for each romper they sell. At this point, the marginal cost of producing one more romper (the first romper beyond the profit maximizing quantity) is $ , an amount than the price received for each romper they sell. Therefore, Iyana's profit-maximizing quantity occurs at the point of intersection between the Because Iyana is a price taker, the previous condition is equivalent to curves.1. What are the conditions of Economic profit, economic loss and breakeven point of Perfect competition market? Explain the conditions with graphsWhat are ways the profit arises in the changeable/dynamic word ? Comment
- Please use profit max formula(s) Show step by step and write the answer at the end like "The max profit will be ___"8. Short-run and long run effects of a shift in demand Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans per year. Suppose that WebMD daims that a protein found in tuna will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand more PRICE (Dollars per cani producing more tuna and earning positive profit Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim. ? 0 tuna at every price. In the short run, firms will respond by Supply Demand 70 140 210 200 350 420 400 560 630 700 QUANTITY (Millions of cans) Demand -0 Supply3. Profit maximization using total cost and total revenue curves Suppose Bob runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Bob's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Bob produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 O ☐ ☐ 0 1 2 3 4 5 QUANTITY (Teddy bears) ☐ 6 Total Cost 7 8 O Total Revenue Profit ?
- coit ad Fifai oriens diss ܠܫܐ -D. Prufe maximirudcn uni hharat-ade mariet prioris ܗ ܕ Sapietne Sarei nuts a imal haats that manum: a Are a e $$ gar Hat The following graph shows Dames total cost curve Use the blue points (circle symbel) to plot total revenue and the green points (triangle symbol) to plat profft for shirts quanties zero through sever (inclusive) that Darnell produces A< ¥UAnd 10 Tripl ܡܢܐ ܕ ܚ ܠܚܝܬ Total Co ܀ ܀JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)Suppose Musashi runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $25 per shirt. The following graph shows Musashi's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Musashi produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 50 25 -25 1 2 3 7 QUANTITY (Shirts) TOTAL COST AND REVENUE (Dollars) co
- need max profit function3. Profit maximization using total cost and total revenue curves Suppose Madison operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $25 per cardigan. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through seven (including zero and seven) that Madison produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 -25 0 0 1 0 2 U 3 5 QUANTITY (Cardigans) 4 6 Total Cost 7 8 。 Total Revenue ▷ Profit3. Profit maximization using total cost and total revenue curves Suppose Latasha runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Latasha's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Latasha produces.