C. less than prid. always equal to the price since the monopolist8. The price is $40, marginal revenue equals marginal cost at $20, quantity is 40 units, and the profit equals$1000. Use the formulas to calculate the firm's average total cost. Must show work.a. $15b. $50c. $150d. $500

Given: Price(P) =$40, Quantity(q) = 40 units, MR=MC=$20, Profit=$1000 We know, Total Revenue (TR) =…

Answered: C. less than pri d. always equal to the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If change in total revenue is $120 And change in output is 6 units Calculate marginal revenue
If a firm's marginal revenue is smaller than its marginal cost, then the firm should a. increase output to increase profit. b. decrease output to increase profit. c. keep output the same. d. collect additional information before taking any action.
Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.
A firm that has as its objective the maximization of revenues rather than profits would produce an output level for which: Select one: a. marginal revenue is equal to zero b. total revenue is equal to total cost c. marginal revenue is equal to average cost d. marginal revenue is equal to price In the short run, a firm should continue to operate, even if it is incurring losses, provided: Select one: a. the firm can cover its variable costs b. the firm can cover its fixed costs c. none of the above d. the firm can cover the sum of its variable and fixed costs
Herriott's is the only veterinary clinic in a remote village. The firm's total fixed cost is $200 a day and marginal cost is zero. The table gives the demand schedule for visits. Price (dollars per visit) 100 80 60 40 20 0 Quantity (visits per day) 0 8 16 24 32 40 Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. Elixir's economic profit is $ a day. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign. 120- 100- 80- 60- 40- 20- Price and cost (dollars per visit) 0 16 32 24 Quantity (visits per day) >>> Draw only the objects specified in the question 8 40 48 Q Q
|Price Demanded Revenue Revenue Marginal Cost Cost $24 1000 $24,000 ** $15,000 ** ** ** $22 1250 $27,500 $14 $17,000 $8 $20 1500 $10 $19,500 $10 $18 1750 $31,500 Y $23,000 $14 $16 2000 $32,000 $2 $27,000 Z (a) Calculate total revenue at X. (b) Calculate marginal revenue at Y. (c) Calculate marginal cost at Z. (d) Find the profit maximizing price. (e) Find the profit maximizing quantity. (f) Find the profit the firm will earn.
Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $125 a day and marginal cost is zero. The table gives the demand schedule for service calls. Price (dollars per service call) 500 400 300 200 100 0 Quantity (service calls per day) 0 2 4 Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. Wilbur's economic profit is $ a dav. 689 10
Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. To maximize its profits, the firm should produce units and charge a price of $ . b. At the profit-maximizing level of output, average total cost per unit is $ . c. At its profit-maximizing level, profits are $ .
Marginal profit and marginal cost are $36 and $88 respectively. Calculate Marginal revenue

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C. less than pri d. always equal to the price since the monopolist 8. The price is $40, marginal revenue equals marginal cost at $20, quantity is 40 units, and the profit equals $1000. Use the formulas to calculate the firm's average total cost. Must show work. a. $15 b. $50 c. $150 d. $500