14 12 14 b. What is true about marginal revenue and marginal costs when profit is maximized? c. What would be the profit-maximizing level of output if price fell to $9?
Q: PRICE (Dollars per pound) 2 80 72 64 8 56 48 40 32 24 16 A 0 120 240 360 450 600 720 640 000 1080…
A: The segment of the marginal cost curve that is located above the average variable cost curve is the…
Q: 32) Corn is produced in a perfectly competitive market. The demand for ethanol decreases. This will…
A: In a market, the demand for one product can directly or indirectly impact the price of other…
Q: 27 23 15 10 MR 75 X 110 MC ATC D What is the price charged by the firm in order to maximize profits?…
A: Monopolistic competition is a market structure characterized by a large number of sellers who offer…
Q: Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue Profit (Dollars) (Dollars)…
A: Marginal cost = change in total cost / change in quality MC (at Q = x) = TCx – TCx-1 / Qx – Qx-1…
Q: Femi's Hook NLadder is the only company selling fire engines in the fictional country of…
A: The objective of the question is to determine whether Femi's HookNLadder should increase production…
Q: Using the following table, for each price level, calculate the optimal quantity of units for the…
A: The shutdown point is a concept in economics that refers to the level of operations at which a firm…
Q: (Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a positive…
A: The firm can obtain profit at the point of production where the price is greater than the average…
Q: MC ATC Price (BCD
A: Total revenue alludes to the total receipts from deals of a given amount of labor and products. It…
Q: The data in the table to the right give the total cost, C, and marginal cost, MC, for a profit…
A: The connection between MC and MR is important for profit maximization. Firms try to maximize profit…
Q: 4) Assuming a market price of $4, fill in the columns in the following table. What is the…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: 7 A firm produces widgets in a highly competitive market. The current market price is $100 per…
A: profit maximizing quantity refers a condition where profit is maximum. here we calculate profit…
Q: 200 180 PRICE (Thousands of dollars per fire engine) 160 140 120 100 80 60 40 20 Nick 0 2 Ofrue O…
A: Demand curve is a downward sloping curve showing inverse relationship between price and quantity…
Q: Assume a perfectly competitive market. Draw the average total cost, average variable cost, marginal…
A: In perfect competition , The profit maximizing quantity is where P = MC. P = MR in the perfect…
Q: 1.Which of the following explains why marginal cost curves are upward sloping? Increasing marginal…
A: 1)Marginal cost curves are upward sloping,because Diminishing marginal product of inputs.
Q: ind curve: Quantity Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 2 4 15 7 10 How much output…
A: here we calculate the level of profit by using the given data so the calculation of the following by…
Q: suppose Boeing is the only firm that produces aeroplanes in the world. The marginal cost of…
A: Demand curve is the graphical representation of demand schedule. Demand schedule is the tabular…
Q: (Table) Based on the table, what is the profit-maximizing output for John's Tricycle Company? Output…
A: Profit maximizing level of output for a firm is where marginal revenue equals marginal cost.
Q: Fixed Variable Total Marginal Output Cost Cost Cost AVC ATC Cost 1 $400 2 $700 3 $918 4 $1200 5…
A: Average variable cost is the variable cost incurred per unit of output produced. Average total cost…
Q: A Moving to another question will save this response, Question 37 The clothing industry is…
A: Since you have posted multiple questions, we have solved the first question for you. If you require…
Q: 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph…
A: Total Revenue (TR): The whole amount of money that a business makes by selling a specific number of…
Q: 6. Problems and Applications Q6 You live in a town with 300 adults and 200 children, and you are…
A: Price discrimination refers to the practice of charging different prices to different customers for…
Q: Price Marginal Cost LA 7 B Vc 2 3 D Price Marginal Revenue Quantity (a) Find the point (A, B, C,…
A: A profit-maximizing firm produces at MR = MC in order to maximize profit. Consumer surplus is the…
Q: The following graph plots daily cost curves for a firm operating in the competitive market for…
A: A shutdown point is a level of operations at which a company experiences no benefit for continuing…
Q: Paolo True increase production from 8 to 9 fire engines because the True or False: If Paolo's Fire…
A: Revenue refers to price multiplied by quantity. Any change in price or quantity will affect total…
Q: Price (dollars) ying graph shows the short-run demand and cost situation for a price searcher in a…
A: Profit maximisation is a process that businesses go through to make sure the best levels of output…
Q: Which of the following statements is more correct if the price of a product in a perfectly…
A: Perfect Competition is defined as a market structure which is considered as the ideal type of market…
Q: 21. Maximum revenue and profit. A company manufactures and sells x television sets per month. The…
A: Answer: Given, Cost function: Cx=72,000+60x Demand function: p=200-x30 0≤x≤6,000 (A). Let us…
Q: If the market equilibrium price is $30, what quantity would a profit-maximizing firm produce? What…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…
Q: 3. Suppose that a firm faces a demand curve that has a constant elasticity of 2. This demand curve…
A: Demand curve is given by q = 256/P2 Or, P = 16/q0.5 Elasticity of demand is 2, i.e. the demand is…
Q: What are the profit-maximizing output level and price for this producer of beer? Costs and revenue…
A: Profit maximisation is a concept in economics that seeks to maximise a company's net profit while…
Q: 7. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume…
A: Detailed explanation: Based on the graph, if there were 30 firms in the market, the short-run…
Q: 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph…
A: Marginal revenue is the additional revenue gained from selling one more unit of a product or…
Q: If there were 10 firms in this market, the short-run equilibrium price of rhodium would be 5 would…
A: Perfect competition is a market consisting of a large number of buyers and sellers. In this market…
Q: output, 6, maximum profit, slightly less than $6
A:
Q: 4. What would be the price per unit if the firm in the figure below is producing the num of outputs…
A: Profit = Total Revenue - Total Cost
Q: For a firm with market power, what is the marginal revenue gained when one more unit of output is…
A: The objective of the question is to understand the concept of marginal revenue for a firm with…
Q: 15. Given the data provided in the table below, what will the marginal revenue equal for production…
A: Marginal Revenue (MR) is the additional revenue that is gained from selling one more unit of a…
Q: Suppose that the unit price of a commodity of firm X is defined by: P- 90 - Q and the total cost of…
A: The demand function depicts the inverse invers relationship between price and the quantity demanded,…
Q: 4. Given the diagram below, answer the following questions: MC (4) MC ATC AVC $40 $ 25 $25…
A: We have to find following questions from diagram.
Q: 3. Profit maximization using total cost and total revenue curves Suppose Kenji runs a small business…
A: Profits are the excess of revenue receipts over the costs incurred by the firm. When the marginal…
Q: Refer to the accompanying figure to answer the following questions. Price $25 $13 $10 100 MC MR D…
A: Profit maximization is when the firm receives the highest profits in the market. Profit maximization…
Q: $16 AC 14 12 MC 10 Price er can 8. Price 160 Cans of pineapple (thousands) 20 40 60 80 100 120 140…
A: In the given diagram: The film earns zero economic profit when Price = Average cost = Marginal…
Q: ok st nces The following table shows the cost and revenue data for Molly the monopolist. Total…
A: A profit-maximizing firm uses its input efficiently to produce optimal output. The optimal output is…
Q: A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are…
A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…
Q: 9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His…
A: Total revenue equals price times quantity. It shows the total receipts a seller can get from selling…
Q: Refer to the figure and table to answer three questions. Price or Cost(dollars per bushel) 18 16 14…
A: Basic:Profit maximization, when Marginal Revenue = Marginal Cost becauseIf MR > MC, the firm will…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- 12. An industry currently has 100 firms, all of which have fixed costs of $16 and average variable cost as follows: Quantity Average Variable Cost 课后作业: 1 $1 2 3 3 . P298 第12题 4 4 5 5 a. Compute marginal cost and average total cost. b. The price is currently $10. What is the total quantity supplied in the market? c. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? d. Graph the long-run supply curve for this market. 查看原圖(152K)250 225 Revenue Lost 200 175 150 Revenue Gained 125 Demand 100 75 50 25 3 4 7 8 9. 10 QUANTITY (Fire engines) Gilberto increase production from 7 to 8 fire engines because the dominates in this scenario. True or False: If Gilberto's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue. O True O False acer Σ 2. 1. PRICE (Thousands of dollars per fire engine)11. The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market. If this firm chooses to produce no output in the short run, what must the market price be? A-Below $20 $21-$30 $31-$40 $41-$50 Above $50 7. firm's implicit costs are $10,000, explicit costs are $5,000, and its total revenue is $10,000. This firm is earning A-normal accounting profit B-positive accounting profit of $5,000 C-positive economic profit of $5,000 D-normal economic profit E-negative accounting profit of $5,000
- 22. Suppose the firm in the figure below sets a uniform price for its product. Please show the steps. a. If the firm chooses to set a uniform price for its product, then the profit-maximizing price is $________ and ________ units will be sold. Under this uniform pricing policy, the maximum possible profit is $________. b. The maximum profit the firm could earn if the firm sells 2,000 units and is able to charge the demand price for every one of the 2,000 units it sells is $ ________. c. For the additional number of units sold by expanding output to 2,000 units (from the output level in part a), the consumer surplus that could be captured if it were possible to charge the demand price on every one of those units would amount to $________.Figure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.6. The long-run supply curve for a particular type of kitchen knife is a hori- zontal line at a price of $3 per knife. The demand curve for such a kitchen knife is Qp = 50 – 2P where Q, is the quantity of knives demanded (in millions per year) and P is the price per knife (in dollars). 253 CHAPTER 7: PERFECT COMPETITION a. What is the equilibrium output of such knives? b. If a tax of $1 is imposed on each knife, what is the equilibrium output of such knives? (Assume the tax is collected by the government from the suppliers of knives.)
- Suppose that Redeye's Game Emporium is in a market with imperfect competition. The graph below shows the firm's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Determine the profit-maximizing level of output and the associated profit-maximizing price. Use the purple rectangle (diamond symbols) to shade the area that represents the firm's profit at this quantity. 2 2 2 2 2 2 2 2 2 2 - PRICE (Dofars per video game) 200 100 100 140 120 100 40 20 20 40 MR 1 88 60 10 100 120 140 160 180 200 QUANTITY (Thousands of Video games) D Profit Which of the following statements is correct at the point where the firm's average total cost (ATC) and the demand curve intersect?2. Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a particular firm operating in this PRICE (Dollars per wind chime) 40 b) 36 32 28 24 20 16 2 8 4 0 MC 0 2 4 + 10 12 14 16 18 20 QUANTITY (Thousands of wind chimes per day) 8 market: a) In short run, at a market price of $26 per wind chime how much will firm ATC AVC 6 the market price is $26 in th quantity you obtained in question (a), indicate the area that represents firm's profit or loss in short run on the graph. c) What is this firm's shutdown price, that is the price below which it is optimal for the firm to shut down in short run? d) In the long run, all firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. e) Graph the…1. If a product sells at a price of $16 in a purely competitive market and faces the marginal cost data shown below, what is the profit maximizing/loss minimizing level of output? Output 0 1 2 3 4 5 Marginal Cost $10 9 13 17 21
- Figure 14-9 Price $29 Po Pa P₂ P₂ Ps Q & a. (P5- P4) × Q3 b. (P5- P3) x Q3 OC. (P5- P4) × Q2 . d. (PS- P3) x Q2 * AVC ATC 6₂ Q₂ Quantity Refer to Figure 14-9. When market price is P5, which area represents a profit-maximizing firm's profits?Quantity Total Revenue Marginal Cost $0 1 $10 $2 2 $20 $4 3 $30 $6 4 $40 $8 5 $50 $12 $60 $14 7 $70 $16 Refer to the above table for a firm's production per day. Suppose the firm has fixed costs of $10 and output price is also $10. The firm will maximize profits by producing |-10 units of output. At the profit-maximizing output level, the firm's total revenue will be $-2 its total costs will be $4 and its profit will be $8 6,The number of chairs that Cooper's Millworks can sell per day is given by the table below. Tables Sold Daily. Price Total Revenue Marginal Revenue Average Revenue 1 2 3 300 280 260 What is the missing value A? Answer: 300 560 A 300 260 B 110 280 C