What is the rule in using the marginal analysis in making the optimal decision? a. the optimal output level is the point where the marginal benefit/marginal revenue is equal to the marginal cost. b. the optimal output level is the point where the marginal benefit/marginal revenue exceeds the marginal cost c. when the marginal costs start to exceed the marginal benefits (marginal revenue), the net benefits (profits) increase. d. as long as marginal benefit (marginal revenue) is greater than marginal cost, the net benefits (profits) decrease

What is the rule in using the marginal analysis in making the optimal decision? a. the optimal output level is the point where the marginal benefit/marginal revenue is equal to the marginal cost. b. the optimal output level is the point where the marginal benefit/marginal revenue exceeds the marginal cost c. when the marginal costs start to exceed the marginal benefits (marginal revenue), the net benefits (profits) increase. d. as long as marginal benefit (marginal revenue) is greater than marginal cost, the net benefits (profits) decrease

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.2: Two Sides To Every Business Firm

Problem 2ST

See similar textbooks

Similar questions

Rob quit his $4,000/month coffee shop position and started an ice-cream business. Rob does not get paid a salary for running the ice-cream business. When calculating the economic profit of the ice-cream business, his old $4,000 coffee shop salary is Select one: a. counted as part of the total revenue. b. counted as part of the implicit costs. c. counted as part of the explicit costs. d. ignored.
What is the difference between accounting profit and economic profit? Select one: a. Accounting profit is always lower because it is actually money. b. The difference is really not important. c. Accounting profit considers explicit financial costs and economic profit doesn't d. Economic profit considers implicit opportunity costs and accounting profit doesn't e. A and D are correct
A. For what value of q is the total revenue growing fastest? B. Complete the following sentence: the total revenue is growing fastest when... C. At what value of q does the total revenue reach the point of diminishing returns? For B the answer choices are the second screenshot
I already filled out the table, but I don't understand how to answer 3. a, b, and c.
If a firm is using the rational rule for sellers, would they produce an extra unit if the marginal cost of $1 and the marginal revenue is $0.95? Select one: a. Yes, because there is a positive marginal revenue b. No, because marginal cost is greater than marginal revenue. c. Yes, because marginal cost if falling d. There is no way to tell if we don't have the firm's profit calculations. e. No, because marginal revenue is surely going to keep rising.
1. It is common for people trying to lose weight to notice that the first 10 pounds are much easier to lose than the last 10 pounds. Use the concept of increasing marginal cost to explain why this is the case.
A market research study of current and potential customers of drones found that “service after the sale” was their biggest issue with their current BATNO. If you were going to go into the business of building and selling drones, you would. A. Price your drones lower than the competition. B. Design a drone with a longer battery life (and therefore longer flight time) than what is currently available. C. Put a better camera in your drone than that which is currently available. D. All of the above. E. None of the above.
Ball Bearings, Inc., faces costs of production as follows:a. Calculate the company’s average fixed cost, average variable cost, average total cost,and marginal cost at each level of production.b. The price of a case of ball bearings is $50. Seeing that he can’t make a profit, thechief executive officer (CEO) decides to shut down operations. What is the firm’sprofit/loss? Was this a wise decision? Explain.c. Vaguely remembering his introductory economics course, the chief financial officertells the CEO it is better to produce 1 case of ball bearings, because marginal revenueequals marginal cost at that quantity. What is the firm’s profit/loss at that level ofproduction? Was this the best decision? Explain
12. SCHOOL SPIRIT As president of Student Council, Brandy is getting T-shirts made for a pep rally. Each T-shirt costs $9.50, and there is a set-up fee of $75. The student council plans to sell the shirts, but each of the 15 council members will get one for free. a. Write a function for the average cost of a T-shirt to be sold. Graph the function. b. What is the average cost if 200 shirts are ordered? if 500 shirts are ordered? c. How many T-shirts must be ordered to bring the average cost under $9.75?
Describe the methods that can be used to to determine where profit is maximized?
Need help figuring this out step by step attached is a formula sheet that you can use to follow
The table below shows the cost of producing model vintage cars for collectors. Instructions: Enter your answers as a whole number. a. Complete the marginal cost column in the table. Vintage Model Car Production Costs Total Fixed Cost Total Variable Cost (dollars) Total Cost (dollars) $2,000 (dollars) $2,000 Marginal Cost (dollars) Output $0 1 2,000 600 2,600 2,000 1,100 3,100 2,000 1,900 3,900 4 2,000 2,900 4,900 5. 2,000 4,150 6,150 b. What is the total cost of producing 4 vintage model cars? 2. c. What is the marginal cost of producing the 4th vintage model car? 2.