ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Chapter 10.3, Problem 3QQ
To determine
Maximization of profit.
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(A) Comment on marginal revenue and marginal cost values when it is given that marginal profit is 0.
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At profit maximization, calculate (P-ATC) x Q.
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- Refer to the above figure. Profits for this firm areSelect one:A.negative.B.zero.C.positive.D.undetermined without more information.arrow_forwardWhat can we say about the Marginal Revenue = marginal Cost relationship: Multiple Choice A. This is the point where the firm maximizes its profits. B. This is the breakeven point for a firm. C. The firm should shut down if it reaches this point. D. The firm is inefficient at this point. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardEconomic profit is a ) P(Q ‐ ATC) b ) PQ/ATC. c ) (P + ATC)Q d ) (P ‐ ATC)Qarrow_forward
- Solve the attachment.arrow_forwardthe choices for the three "quantity" column are (6000, 10400, 12000). the choices for the "price: column are (20,28,34,50) the choices for profit are (negative,prositve, zero) the choices for long run decision are (exit the industry, stay in business, stay or exit) please also do the rest of the questions. thankyouuuuarrow_forwardSolution within one hour...the correct option is (b)... solve for it and explain how is it correct?arrow_forward
- Indicate on the graph the areas that represent Total Revenue, Total Cost, and Profit.a. When P>ATCb. When P<ATCc. When P=ATCarrow_forwardwhat are the formulas for each column? what is the profit maximizing output q and p? what is the firms best course of action short and long term?arrow_forwardMaria 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.)arrow_forward
- MC Harga & Kos (RM/per unit) Price & Kos E. Ps ATC (RM/per unit) AVC P. P3 P2 B. P, Q, Q Q Q. Q Kuantiti Keluaran (unit/ tempoh masa) Quantity of Output (units/ time period) Based on the figure above, the firm's total economic profit is maximized when the price is Select one: a. P3 O b. P5 0C. P2 0d. P4arrow_forwardYour company identifies the amount of output where marginal revenue equals marginal cost; at this amount of output, the price is below average total cost but above average variable cost. Your company should expect Select one: 0 0 10 a. to break even or earn a normal profit. b. to take losses, but should continue in operation in order to avoid a greater loss of fixed costs c. to take such large losses that it should cease operations for a while. d. to earn above-normal economic profit.arrow_forwardNote:Hand written solution is not allowed.arrow_forward
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