According to the table above, this firm would most likely set price at the quantity where______________....

Question

Question

According to the table above, this firm would most likely set price at the quantity where______________.

a. MR = ATC

b. MR = P

c. MR = MC

d. None of the above

Answer 1

Answer #1

Since a monopoly firm or monopolistic competitive firm profit maximising condition are

MR=MC

When firm produces a output level at which MR=MC

Then firm can maximize its profit.

Hence firm will set price and quantity where

MR=MC

Hence option c is the correct answer.

Answer 2

Similar Homework Help Questions

1)When there are lower prices, but waiting lines customers will often be drawn to the competing...

1)When there are lower prices, but waiting lines customers will often be drawn to the competing location of a Monopolistic Competitor with greater customer service and better atmosphere. true or false? 2) According to the table above, this firm would most likely set price at the quantity where______________. a. MR = ATC b. MR = P c. MR = MC d. None of the above 3) Many firms exercise ____________________ such as when different prices are charged by telephone companies...
PART 1 Costs & Revenue Price MC The INDUSTRY is the price maker The SINGLE FIRM...

PART 1 Costs & Revenue Price MC The INDUSTRY is the price maker The SINGLE FIRM IS a price taker S ATC ARMR D Q Q Quantity Output Price Costs Revenue The INDUSTRY is the TSINGLES a proto MC pro NOIVAL proft in the US ATC AR-MR P1 AR-MR D Q01 Q10 Output a. What type of market structure is shown in the diagram above and how did you determine this? b. What are the firm's short run profit maximizing...
ATC Price Quantity According to the above graph, at what output would a properly constructed marginal...

ATC Price Quantity According to the above graph, at what output would a properly constructed marginal cost curve cross the ATC curve? 03 According to the above graph, at what output would a properly constructed marginal cost curve cross the ATC curve? 03 04 05

Question 15: The efficient level for this firm is A. 30 units equalizing MR to MC....

Question 15: The efficient level for this firm is A. 30 units equalizing MR to MC. B. 18 units minimizing the ATC. C. 13 units where the MC is equal to zero. D. None of the above. Use Figure 2 to answer the following questions (Q13., Q14. and Q15.) MC ZMR P, costs P= $16 ATC 13 18 30 Figure 2- Production costs Q13. Which statement is true: A. The firm depicted by the graphic is competitive as the marginal...
On the graph below depict the profit maximizing price and quantity for the MONOPOLISTICALLY COMPETITIVE firm...

On the graph below depict the profit maximizing price and quantity for the MONOPOLISTICALLY COMPETITIVE firm such that others are motivated to enter the industry. In your graph, you should include the following curves: D,AR,MR,ATC,S and MC.
Based on the graph above, what is the profit this monopolistic competitive firm earns in the...

Based on the graph above, what is the profit this monopolistic competitive firm earns in the long run? Price MC ATC $14 $13 D MR $1 - 80 120 160 Quantity

Please answer the following 3 questions: Price МС ATC Tmi 5 ---- Quantity/Time MR According to...

Please answer the following 3 questions: Price МС ATC Tmi 5 ---- Quantity/Time MR According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter e ż O O O O 3 Which of the following would best describe the demand curve faced by a monopoly firm? o vertical line at the output level O same as the market demand curve O same as the perfect competitor's demand curve O horizontal line at the...
Price ATC MC MR Quantity This monopolistically competitive firm is currently experiencing if it is operating...

Price ATC MC MR Quantity This monopolistically competitive firm is currently experiencing if it is operating at the profit-maximizing output. a profit zero economic profits a loss
Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes...

Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes its positive profit in the short-run, its average total cost (ATC) and marginal cost (MC) are most likely as ATC=6 and MC=4 ATC=6 and MC=6 ATC=4 and MC=4 ATC=4 and MC=6

At a price of _____ the firm is indifferent about staying open or shutting down. a....

At a price of _____ the firm is indifferent about staying open or shutting down. a. $6 b. $2 c. $4 d. $8 The firm’s supply curve is every point along the MC curve above _____. a. MR b. MC c. ATC d. AVC GRAPH 2 MC ATC ------ L AVC 5 8 10 13 Q