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Marginal revenue and marginal cost are same. This means that the firm is at minimum level of profit.
True/False
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- The firm will A-increase its marginal revenue B increased its profits C decrease its marginal revenue D maximize its profitsCOST AND REVENUE ANALYSIS Mr. Singh Hot is using special chemicals for ply bathroom tissue to differentiate it from other tissue in the market. Initially he has 15 machines that cost P1,500,000, and 12 workers with a salary of P23,000 each. The selling price of Mr. Singh Hot is P25.00 and he is able to produce an output of 100,000 tissue in 2012. In 2013 he employed 10 more workers with the same salary and the output increased by 20,000 pieces. In 2014, 15 more workers were employed with the same salary and the output increased to150,000 pieces..Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17.50 $15 $10 $4.40 $5 3.25 MR Demand 1 3 4 5 6 7 8 9 10 Quantity Price and costs ....
- Thinking on the Margin to Increase Profitability Have you ever walked into a restaurant for lunch and found it almost empty? Why, you might ask, does the restaurant even bother to stay open? It might seem that the revenue from so few customers could possible cover the cost of running the restaurant. Provide an opinion using the concepts of sunk costs, marginal cost and marginal revenue.Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Price Per Hour (Q) (P) 0 $6.00 1 5.50 2 5.00 3 4.50 4 4.00 5 3.50 6 3.00 7 2.50 8 2.00 Total Cost (TC) $2.00 6.50 10.00 13.00 15.50 17.50 19.00 21.00 24.00 loaves of ciabatta bread per hour. (Enter your response as an integer.) a. To maximize profits, Maria should sell Maria should charge a price of $ Maria's maximum profit is $ (Enter your response rounded to two decimal places.) (Enter your response rounded to two decimal places.) (Enter your b. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $ response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $. (Enter your response rounded to two decimal places.)Sal's Sneakers Price $250 $225 MC, MC2 $200 $175 $150 $125 $100 $75 $50 $25 MR 10 20 30 40 50 60 70 80 90 100 Quantity The marginal cost for Sal's Sneakers has fallen from MC1 to MC2. How will Sal's total revenue change? Multiple Choice Total revenue will increase.
- Marginal revenue and marginal cost intersect at pointWhat does (Box A + Box B) represent for this firm? A Marginal Revenue B Marginal Cost C Average Total Cost D Total Revenue E Total Cost F ProfitPerfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180
- Profits are maximized at the output at which marginal cost equals marginal revenue. If the market price falls below the minimum average variable cost: a. None of the responses apply b. the firm should produce less. c. the firm should produce more. d. the firm should shut down.Q10 needed Q8 pic is just for reference Question 10 Refer to Table 5-1 and the firm in Question 8, How much profit does the firm make at the chosen quantity? (enter just the number, no $)Marginal profit and marginal cost are $36 and $88 respectively. Calculate Marginal revenue
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