Homework Answers
a. Firm’s maximizes output at the point where P=MR=MC. At this point, equilibrium quantity is 6000 units and equilibrium price is $150.
b. Profit = total revenue - total cost = P*Q - ATC*Q = 150*6000 - 120*6000 = $ 180,000
c. If the price drops below AVC (i.e, P= $ 66) then the firm will shut down.
Add Answer to:
a-what is the firm's maximizing output?
b-what is the firm's profit?
c- if the price drops...
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point...
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
If a perfectly competitive firm is producing 150 units of output at a price of P=$20,...
If a perfectly competitive firm is producing 150 units of output at a price of P=$20, where the MC of the 150th unit of output is MC=$20, the ATC of the 150th unit is ATC=$10, and the AVC of the 150th unit is AVC=$8, then which of the following statements is not correct? a. The firm should shut down when the price is less or equal to $8. b. The firm is producing at the profit maximizing level of output....
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
10. The monopoly firm's profit-maximizing price is: determined for the quantity of output at which MR...
10. The monopoly firm's profit-maximizing price is: determined for the quantity of output at which MR > MC by the greatest amount. given by the point on the ATC curve for the profit-maximizing quantity. given by the point on the demand curve for the profit-maximizing quantity. found where MR > MC at the monopolist's profit-maximizing quantity of output.
II.A. Identify and label the profit-maximizing level of output (Q) that will be pursued by this...
II.A. Identify and label the profit-maximizing level of output (Q) that will be pursued by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand Output(Q) MR II.B. Draw and label the rectangle that represents the Total Revenue (TR) generated by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand -Output(Q) MR II.C. Draw and label the rectangles that represent Total Cost (TC), Total Fixed Cost (TFC) and Total Variable Cost (TVC) generated by this ‘monopolistic' firm....
At a firm's current level of production, marginal revenue is greater than marginal cost (MR>MC).A profit-maximizing...
At a firm's current level of production, marginal revenue is greater than marginal cost (MR>MC).A profit-maximizing firm will increase prices. increase output decrease output. O shut down.
Figure: A Profit-Maximizing Monopoly Firm Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing...
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
A competitive firm's cost of producing q units of output is C = 18 + 4q + q^2 Its corresponding m...
A competitive firm's cost of producing q units of output is C = 18 + 4q + q^2 Its corresponding marginal cost is MC = 4 + 2q. a. The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, ..... 15, where the columns are q, R, C, VC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level of output...
Question 12 1 pts In the graph below if the price persists at P*, the profit...
Question 12 1 pts In the graph below if the price persists at P*, the profit maximizing firm will Price AVC MC P* AFC Quantity Screenshot(Alt + A) shut down in the long run. o have a strategy that cannot be predicted without an ATC curve. O shut down immediately. o operate indefinitely.
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
10. The monopoly firm's profit-maximizing price is: determined for the quantity of output at which MR > MC by the greatest amount. given by the point on the ATC curve for the profit-maximizing quantity. given by the point on the demand curve for the profit-maximizing quantity. found where MR > MC at the monopolist's profit-maximizing quantity of output.
II.A. Identify and label the profit-maximizing level of output (Q) that will be pursued by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand Output(Q) MR II.B. Draw and label the rectangle that represents the Total Revenue (TR) generated by this 'monopolistic' firm. (5 Points) $$ MC ATC AVC Market Demand -Output(Q) MR II.C. Draw and label the rectangles that represent Total Cost (TC), Total Fixed Cost (TFC) and Total Variable Cost (TVC) generated by this ‘monopolistic' firm....
At a firm's current level of production, marginal revenue is greater than marginal cost (MR>MC).A profit-maximizing firm will increase prices. increase output decrease output. O shut down.
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
Question 12 1 pts In the graph below if the price persists at P*, the profit maximizing firm will Price AVC MC P* AFC Quantity Screenshot(Alt + A) shut down in the long run. o have a strategy that cannot be predicted without an ATC curve. O shut down immediately. o operate indefinitely.
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