Explain with the use of examples the difference between the following concepts: producer surplus and economic profit

Q: Describe and explain fully the type of economic profit that Is earned if price exceeds average cost.…

A: Price refers to the money a company gets for the sale of each item while average cost is the total…

Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal…

A: In competitive environments, prices are determined by the interplay of supply and demand dynamics.…

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: The following table shows the total revenue and total cost of a firm at the various quantities of…

A: Total cost is the sum of all the costs that a firm incurs for the production of a good. The total…

Q: B. Problems and Applications Q3 Taylor Swift has just finished recording her latest album. The…

A: Total revenue equals price times quantity. It shows the total receipts a seller can get from selling…

Q: Suppose that purely competitive firms producing cashews discover that P exceeds MC. Is their…

A: The purely competitive firm produces cashews with price that exceeds the marginal cost. Thus, the…

Q: the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly firm. Place…

A: A monopoly firm produces at the intersection point of MR and MC curve.  The output corresponding to…

Q: A store sells good A. The market price of good A is $40. It has the following cost and output…

A: In perfectly competitive market, there are large number of firms selling identical goods.

Q: Consider a perfectly competitive market for frozen meals. The demand for frozen meals is given by Pd…

A: Consumer surplus is an economic concept that represents the difference between what consumers are…

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: If total revenue increases at a constant rate, what does thiscondition imply about marginal revenue?

A: Marginal Revenue means the rate at which Total Revenue is either increased or decreased on sale of…

Q: please explain how the answer is 1.5 and 7, i thought profit was maximized was when MR=MC or if its…

A: A key idea in microeconomics is the premise that profit is maximized when Marginal Revenue (MR)…

Q: Under the long-run equilibrium, for perfectly competitive markets without any government…

A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…

Q: To show that the marginal revenue curve always lies below the demand curve, consider the following…

A: The demand schedule is given in the table below:PQ151122936435Total revenue is the amount that a…

Q: a. Complete the table by filling in the values for profit, marginal revenue, and marginal cost. b.…

A: Total cost is the cost incurred by the firm for the production of final goods.  The cost is divided…

Q: Use the following graph to answer the next 4 questions. The below graph shows the demand for…

A: Price discrimination is a pricing strategy based on the principle that the seller will charge the…

Q: Draw a graph of a typical firm and an industry market (with supply and demand). Illustrate and…

A: Conceptual Overview:If a typical firm in a perfectly competitive industry is earning an economic…

Q: Questions 1-3 use the following case to determine a way to take a single product, like toilet and…

A: In the case where the buyer sells one role at the time, the seller will sell the roll at the…

Q: Explain how to determine a firm's cost of production and economic profit

A: Production Cost:- Manufacturing expenses are the expenses incurred by a firm when it manufactures an…

Q: Complete the table below to answer questions 46. and 47.: Price Quantity Cost $18 16 14 12 10 8 642…

A: Remember the formulas:Total Revenue (TR) = Price (P) x quantity (Q)Marginal revenue (MR) = change in…

Q: Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the…

A: A perfectly competitive market is one where there are large numbers of firms. All the firms sell the…