Homework Answers
Answer
Option C
Q2
The MR=MC is at profit maximum
The profit is maximum at marginal profit equal to zero and marginal profit =MR-MC
MR-MC=0 then the profit is maximum which means at MR=MC
Profit=TR-TC
The profit is maximum when the TR and TC distance is highest and TR>TC
So it is maximum at Q2 units
===
The breakeven is at Q0 and Q4 where TR=TC
=====
An the firm make loss at Q<Q0 and Q>Q4
As the TC>TR
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Figure 12-2 Costs Total and cost Total revenue revenue e b 1,000 2 Quantity Refer to...
Figure 12-2 Costs Total cost and revenue Total revenue e C b 1,000 Quantity Refer to...
Figure 12-2 Costs Total cost and revenue Total revenue e C b 1,000 Quantity Refer to Figure 12-2. Suppose the firm is currently producing Q2goods. What happens if it increases production to Q3? A) It makes less profit. B) It breaks even. C) It has a lower loss. D) It will maximize the profit.
Figure 12-2 Costs and Total cost/ revenue Total revenue 1,000 QQ Quantity Refer to Figure 12-2....
Figure 12-2 Costs and Total cost/ revenue Total revenue 1,000 QQ Quantity Refer to Figure 12-2. Suppose the firm is currently producing less than Qo goods. Which of the following is true? OA) It makes the highest profit. B) It makes zero profit. C) It makes profit, but it is not maximized. D) It incurs a loss.
Total Costs and revenue cost/ Total revenue 1.000 Quantity Refer to Figure 12-2. Suppose the firm...
Total Costs and revenue cost/ Total revenue 1.000 Quantity Refer to Figure 12-2. Suppose the firm is currently producing Q2 goods. Which of the following is true? A) It breaks even. B) It makes profit, but it is not maximized. OC) It makes the highest profit. D) It incurs a loss.
COSTS REVENUES Quantity Produced Total Cost Marginal Cost Quantity Demanded Price Total Revenue Marginal Revenue 0...
COSTS REVENUES Quantity Produced Total Cost Marginal Cost Quantity Demanded Price Total Revenue Marginal Revenue 0 $50.00 -- 0 $60 -- 1 $75.00 1 $60 2 $101.00 2 $60 3 $128.50 3 $60 4 $158.50 4 $60 5 $192.50 5 $60 6 $232.50 6 $60 7 $281.00 7 $60 8 $341.00 8 $60 Refer to Table 14-13. What is the economic profit at the profit maximizing point for this firm? a. $187.50 b. $139 c. $39 d. $121.50
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is $5, the firm: Group of answer choices A. is making an economic profit of $21. B. should produce output equal to 10. C. is breaking even. D. should shut down. E. is having an economic loss but should continue as P>AVC. МC P MR = 8 8 АТC 7 6 Cost revenues 5 P MR 5 (dollars) 4 AVC 3 P MR 2 2...
Table 14-12 Bill's Birdhouses COSTS REVENUES Quantity Total Produced Cost Marginal Quantity Cost Demanded Price Total...
Table 14-12 Bill's Birdhouses COSTS REVENUES Quantity Total Produced Cost Marginal Quantity Cost Demanded Price Total Marginal Revenue Revenue $0 $80 $50 $102 a wo $157 $217 $80 Ca W NA $285 $365 $80 $462 $80 $582 Refer to Table 14-12. What is the total revenue from selling 4 units? $320 5137 $480 $80 Question 3 Refer to Table 14-12 (above in Q2). What is the average revenue when 4 units are sold? $0 $68 $400 $80 Question 4 Refer...
1) As quantity increases for a price-taking firm Group of answer choices a Total revenue may...
1) As quantity increases for a price-taking firm Group of answer choices a Total revenue may increase or decrease b Total revenue will increase c Marginal revenue will increase d Marginal revenue decreases 2) Suppose a price-taking firm has the following total costs. What is the profit-maximizing quantity the firm should produce assuming the price of the good is 60? Quantity 0 1 2 3 4 5 6 7 8 Total Cost 200 300 370 420 460 510 570 650...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
Help with #3-5 please! Total Cost Total $1,400 Revenue 1,200 1,000 800 600 400 200 0...
Help with #3-5 please!
Total Cost Total $1,400 Revenue 1,200 1,000 800 600 400 200 0 100 320 440 Output 3. Refer to the above short-run data. The profit-maximizing output for this firm is: A. Above 440 units. B 440 units. C. 320 units. D. 100 units. 4. Refer to the above short-run data. Which of the following is correct? A. Any level of output between 100 and 440 units will yield an economic profit. B. Any level of output...
Total Costs Refer to the above table. The table represents information on the costs for Ajax...
Total Costs Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $10. What does total revenue equal when quantity equals 47 $40 $6 $36 Revenue and Costs (dollars) 160 IC TR 0 2 4 6 8 10 12 14 16 18 20 Quantity In the above figure, the profit-maximizing rate of production for the perfectly competitive firm is 10. 13....
Figure 12-2 Costs Total cost and revenue Total revenue e C b 1,000 Quantity Refer to Figure 12-2. Suppose the firm is currently producing Q2goods. What happens if it increases production to Q3? A) It makes less profit. B) It breaks even. C) It has a lower loss. D) It will maximize the profit.
Figure 12-2 Costs and Total cost/ revenue Total revenue 1,000 QQ Quantity Refer to Figure 12-2. Suppose the firm is currently producing less than Qo goods. Which of the following is true? OA) It makes the highest profit. B) It makes zero profit. C) It makes profit, but it is not maximized. D) It incurs a loss.
Total Costs and revenue cost/ Total revenue 1.000 Quantity Refer to Figure 12-2. Suppose the firm is currently producing Q2 goods. Which of the following is true? A) It breaks even. B) It makes profit, but it is not maximized. OC) It makes the highest profit. D) It incurs a loss.
Table 14-12 Bill's Birdhouses COSTS REVENUES Quantity Total Produced Cost Marginal Quantity Cost Demanded Price Total Marginal Revenue Revenue $0 $80 $50 $102 a wo $157 $217 $80 Ca W NA $285 $365 $80 $462 $80 $582 Refer to Table 14-12. What is the total revenue from selling 4 units? $320 5137 $480 $80 Question 3 Refer to Table 14-12 (above in Q2). What is the average revenue when 4 units are sold? $0 $68 $400 $80 Question 4 Refer...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
Help with #3-5 please!
Total Cost Total $1,400 Revenue 1,200 1,000 800 600 400 200 0 100 320 440 Output 3. Refer to the above short-run data. The profit-maximizing output for this firm is: A. Above 440 units. B 440 units. C. 320 units. D. 100 units. 4. Refer to the above short-run data. Which of the following is correct? A. Any level of output between 100 and 440 units will yield an economic profit. B. Any level of output...
Total Costs Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $10. What does total revenue equal when quantity equals 47 $40 $6 $36 Revenue and Costs (dollars) 160 IC TR 0 2 4 6 8 10 12 14 16 18 20 Quantity In the above figure, the profit-maximizing rate of production for the perfectly competitive firm is 10. 13....
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