Q: How do you calculate the revenue of a firm that produces only one good?
A: ANS TR is the value of the total number of goods sold by a firm in monetary terms. It is the product…
Q: Delvin has a hot dog stand in a busy midtown area with similar stands on every block. The graph…
A: A perfect competitive firm is a firm that operates in a perfectly competitive market.In a perfectly…
Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…
A: Economic profit is defined as difference between revenue that is received from the sale of a good or…
Q: How does a competitive firm determine the quantity that maximizes profit?
A: The markets are considered to be of utmost importance for the economies, because it assists in the…
Q: According to marginal analysis, a perfectly competitive firm will produce an output level where what…
A: According to marginal analysis, a perfectly competitive firm will produce an output level where…
Q: Questions 1-3 use the following case to determine a way to take a single product, like toilet and…
A: Equilibrium quantity:Equate marginal revenue and marginal cost to ge the value of equilibrium…
Q: Why is the level of output at which marginal revenue equals marginal cost the profit-maximizing…
A: Every producer produces services and goods and sells them in the market. The main objective of every…
Q: Small businesses typically do not observe the demand curves for the products they sell. For example,…
A: A commerce which functions on a small range level involves fewer wealth ventures, fewer numeral of…
Q: Why do economists believe that economic profit is the more accurate measure of a business success?…
A: Accounting profit only considers the cost that has actually happened, but economic profit considers…
Q: Suppose Eleanor runs a small business that manufactures teddy bears. Assume that the market for…
A: The profit earned by a firm operating in a competitive market is the difference between the total…
Q: Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a…
A: In perfectly competitive markets, there are many sellers which produce homogenous good and sells…
Q: Simone's profit is maximized when she produces |teddy bears. When she does this, the marginal cost…
A: Perfect competition is the one where there are infinite number of buyers and sellers, and earn zero…
Q: Use the graph above to answer these questions: What is the profit-maximizing level of output? What…
A: The graph shows the quantity at Y axis and the price at X axis. The curves that are shown in the…
Q: Distinguish the difference between the market demand curve and the demand curve that a particular…
A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…
Q: A firm's cost curves are given in the following table. 9 0 1 2 3 4 5 6 7 8 9 10 i) ii) iii) iv) TC…
A: TC(total cost) is the sum of fixed(TFC) and variable (TVC) costs. ATC(average total cost) is the…
Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?
A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.
Q: The Economy Tomorrow Using the folowing graph as a reference, what will be the effect of a…
A: We have given
Q: This company wants to maximize its profit in the short run. How much is a profit-maximizing quantity…
A: Costs are the expenses that firms incur in the production of goods and services. Revenue is the…
Q: Using the previous table, what is the profit maximizing level of output?
A: Profit Maximization:Profit maximization happens at the point where the marginal revenue (MR) and…
Q: table shows some of the costs of production for Marie's Fortune Cookies. The fortune cookie market…
A: A perfectly competitive firm sets its profit-maximizing level of output at a point where the price…
Q: Price 3) Quanty Tetal Tetal Rev 3) Marginal Marginal Co Revene (3) Cot (S) 100 100 100 10 000 10000…
A: TR(total revenue) is the product of P(price) and Q(quantity). MR is the slope of TR.
Q: MC ATC P = MR = AR
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per…
A: MR and AR curve is downward sloping curve which means more of good only can be sold with low price .…
Q: С О A B C K О To maximize profits, the firm whose data is shown in the graph should produce the…
A: Profit maximizing level of output is given at the point where marginal revenue (MR) equals marginal…
Q: The table below provides revenue and cost information for a perfectly competitive firm producing…
A: Total revenue and total costs: Total revenue is the total value of the commodities produced and sold…
Q: Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a…
A: Let us calculate the total cost, total revenue, marginal revenue and marginal cost of the shirts…
Q: Hannah has a small business making clothing alterations. Which of the following products would…
A: Hannah has a small business that makes clothes adjustments, according to the question. Thread is the…
Q: Use the following graph to answer the questions below. Please enter your answers as whole numbers…
A: a) When the price is P1: MC cuts P1 at quantity 80 when the price here is 30 and ATC at 20, which…
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: Look at Table . What would happen to the firm’s profits if the market price increases to $6 per pack…
A: The firm will seek to maximise profits; they do this by producing at the point MC=MR. At at this…
Q: Using the graph from the previous question, explain why a competitive industry is efficient. Be sure…
A: The capacity of a competitive industry to attain both allocative and productive efficiency qualifies…
Q: 74. In the video, when MC > MR, what action should the firm take to Maximize Profit. Select one: a.…
A: 74. Marginal revenue is the amount of revenue received from selling one additional unit. Marginal…
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: Using the figure above, what is profit/loss for the firm?
A: In the case of a profit-maximizing firm, the optimal point of production is where the price is equal…
Q: The graph shows the relevant curves for a profit maximizing monopolist. Assume that it is possible…
A:
Q: What is the firms profit or loss?
A: Since the marginal revenue of the firm is above the average total cost and the marginal cost the…
Q: Consider the graph. What is the value of profit when this firm is maximizing profit? Enter the…
A: The profit maximising point will be that point where marginal revenue equals marginal costs.…
Q: News reports from the western United States occasionally report incidents of cattle ranchers…
A: A profit-maximization can be understood as a process of determining the level of output, and price…
Q: Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.
A: Marginal Cost is the additional cost incurred in the production of additional unit of output.…
Explain the difference between a firm's revenue and its profit. Which do firms maximize?
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- 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.Suppose Lucia runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $20 per teddy bear. The following graph shows Lucia's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven teddy bears that Lucia produces, including zero teddy bears. (?) 175 150 Total Cost Total Revenue 125 100 Profit 75 -25 -50 4 7 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)Why is perfect competition assumed to be the best market situation in most cases? Draw a graph showing the long run result of perfect competition and explain why it benefits society.
- Questions 1-3 use the following case to determine a way to take a single product, like toilet and bundle it in such a way as to extract all of the profit at the time of the initial sale. You go to CostCo or Walmart and you see paper towel sold in a bundle and you wonder how the retailer can make any money. You do a little research and you find that the demand for paper towels is depicted by the following demand curve and marginal cost: P=$2.20 (1/10)*Q MR-$2.20 (2/10)*Q MC 0.20 where P is the price of paper towels, MC is the marginal cost of paper towels, MR is the marginal revenue of paper towels and Q is the quantity of paper towels. So you decide to try two different pricing strategies: 1) sell one roll at a time and 2) use multipart pricing to sell a bundle. Given the results for the pricing strategies in problems 1 and 2, what is your pricing decision and why?What will be the firms total profit?11. Profit maximization using total cost and total revenue curves Suppose Hubert 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 Hubert'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 Hubert produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 3 QUANTITY (Teddy bears) 1 2 5 7 8 TOTAL COST AND REVENUE (Dollars)
- 3. 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 ?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) coWhat is an example of another business that stays open even when it's slow, and its revenue does not seem like it could cover its costs? Use microeconomics terms to explain
- Use the graph above to answer these questions: What is the profit-maximizing level of output? What is the economic profit? What is the per-unit amount of profit at the profit-maximizing level of output?Suppose Megan 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 Megan's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven teddy bears that Megan produces, including zero teddy bears. 200 T 175 150 125 100 75 50 0 -25 35 30 20 15 10 5 0 0 D 0 1 2 1 C 2 D ☐ 3 4 5 QUANTITY (Teddy bears) Calculate Megan's marginal revenue and marginal cost for the first seven teddy bears she produces, 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. (?) 0 3 4 5 QUANTITY (Teddy bears) 6 Total Cost 0 6 7 8 7 O 8 Total Revenue A Profit O (?) Marginal Revenue Marginal Cost Megan's profit is maximized when she produces teddy bears. When she does this, the marginal cost…“An upward – sloping demand curve doesn’t make sense in my business. All I know is that if I raise my prices, revenue doesn’t go up, it goes down. I don’t sell more products, I sell less. “Can you straighten out this business man’s thinking?
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)