Profit maximization by all the businesses in Company U.

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Answer 1

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

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Students have asked these similar questions

Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

Answer 2

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

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Answer 3

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

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Answer 4

Question

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

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Answer 5

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

Answer 6

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

Answer 7

Chapter 16, Problem 1QE

To determine

Profit maximization by all the businesses in Company U.

Answer 8

Expert Solution & Answer

Explanation of Solution

The profit is the excess revenue made by the firm after deducting the total cost of production from the total revenue made by the firm through the sale of the goods and services in the market. The firms in the imperfectly competitive market will be attracted toward the maximization of the profit in the market and thus, they would work toward the actions that maximize the profits for the businesses.

Even though the main objective of every firm under the imperfectly competitive market is to maximize their profit, the firms cannot always work for maximizing their profits in the US economy. There are many internal monitoring issues with every firm and these internal monitoring issues make the managers of the firm to look away from the profit maximization principle and might waste the profit potential on high priced benefits for themselves, which leads to the inefficiency in the production. When the inefficiency increases above the market limit, the firm might go out of business due to the loss. Thus, it is not necessary that the businesses in the US would always maximize their profit in the US economy.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Market equilibrium: The market equilibrium is obtained at the point where the market demand equals with the market supply in the economy. There will be no excess or shortage in the economy when the economy is in its equilibrium.

Answer 12

Ch. 16.1 - Prob. 1Q Ch. 16.1 - Prob. 2Q Ch. 16.1 - Prob. 3Q Ch. 16.1 - Prob. 4Q Ch. 16.1 - Prob. 5Q Ch. 16.1 - Prob. 6Q Ch. 16.1 - Prob. 7Q Ch. 16.1 - Prob. 8Q Ch. 16.1 - Prob. 9Q Ch. 16.1 - Prob. 10Q

Profit maximization by all the businesses in Company U.

Profit maximization by all the businesses in Company U.

Explanation of Solution

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Chapter 16 Solutions