Question 1A Graphically, a firm's profit-maximizing output can be found by identifying the intersection of the...
Question 1A
Graphically, a firm's profit-maximizing output can be found by
| identifying the intersection of the rising part of the MC curve and the MR curve and making sure that the price of the product is greater than the average total cost. |
| identifying the intersection of the non-falling part of the MC curve and the MR curve and making sure that the price of the product is greater than the average variable cost. |
| identifying the intersection of the rising part of the MC curve and the MR curve and making sure that the price of the product is less than the average variable cost. |
| identifying the intersection of the falling part of the MC curve and the MR curve and making sure that the price of the product is less than the average variable cost. |
Question 1B
A firm in any industry should shut down (close down temporarily) when:
| its average total cost exceeds its price. |
| ts total costs exceed its total revenue. |
| its average variable cost exceeds its price. |
| its fixed costs are greater than its variable costs. |
Homework Answers
1. Graphically, a firm's profit-maximizing output can be found by
identifying the intersection of the rising part or non- falling part of the MC curve and the MR curve and making sure that the price of the product is greater than the average variable cost.
Ans is b)
Explanation:
profit is maximizing when MR= MC and price is greater than AVC ( because if price is less than AVC, the firm will shut down).
2. A firm in any industry should shut down (close down temporarily) when its average variable cost exceeds its price.
Ans is c)
its average variable cost exceeds its price.
Explanation:
According to the shut down condition ( P < AVC)
Add Answer to:
Question 1A
Graphically, a firm's profit-maximizing output can be found
by
identifying the intersection of the...
The minimum point of the average variable cost curve (AVC) is referred to as the a....
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
Initially, the market price is p=20, and the competitive firm's average variable cost is 18, while...
Initially, the market price is p=20, and the competitive firm's average variable cost is 18, while its average cost is 21. Should it shut down? Why? This firm should O A. not shut down because average cost is greater than average variable cost. OB. shut down because average fixed cost is less than the market price. O C. not shut down because average variable cost is less than the market price. OD. not shut down because average fixed cost is...
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...
If the price is greater than average total cost at the profit-maximizing quantity of output in...
If the price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will: options: 1) continue to produce at a loss. 2) produce at a profit. 3) shut down production. 4) reduce its fixed costs.
If a competitive firm's marginal costs always increase with output, then at the profit maximizing output...
If a competitive firm's marginal costs always increase with output, then at the profit maximizing output level, producer surplus is Select one: a. zero because marginal costs equal marginal revenue. b. zero because price equals marginal costs. c. positive because price exceeds average variable costs. d. positive because price exceeds average total costs. e. positive because revenues are increasing faster than variable costs
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.
Please provide full explanation . Thank you! Question A3 If a firm's average revenue function is...
Please provide full explanation . Thank you!
Question A3 If a firm's average revenue function is greater than its marginal revenue function, then its a) average revenue function must be falling. b) average revenue function must be rising. c) average revenue function may be rising, falling or flat d) marginal revenue function is rising Question A4 For a profit-maximising monopolist, output should be increased to enhance welfare as long as: a) marginal revenue exceeds marginal cost b) marginal revenue exceeds...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product • maximizes profit minimizes average total cost • minimizes average variable cost QUESTION 32 If marginal cost is rising - average variable cost must be falling average fixed cost must be rising marginal product must be falling • marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output...
A monopolist maximizes profits by choosing that output and price at which: (CHOSE ONE OF THE...
A monopolist maximizes profits by choosing that output and price at which: (CHOSE ONE OF THE FOLLOWING) marginal cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that the price is greater than the average variable cost, and that the marginal cost is rising at the profit-maximizing output. average variable cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that...
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...
The minimum point of the average variable cost curve (AVC) is referred to as the a. Break-even price. b. Shut-down price. c. Government subsidy price. d. Profit maximizing point A firm will shut down its operation temporarily if a. It is not making an economic profit. b. Marginal cost exceeds marginal revenue c. The price is equal to average total cost d. It is not making a normal profit e. It is unable to cover its variable costs.
Initially, the market price is p=20, and the competitive firm's average variable cost is 18, while its average cost is 21. Should it shut down? Why? This firm should O A. not shut down because average cost is greater than average variable cost. OB. shut down because average fixed cost is less than the market price. O C. not shut down because average variable cost is less than the market price. OD. not shut down because average fixed cost is...
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...
If a competitive firm's marginal costs always increase with output, then at the profit maximizing output level, producer surplus is Select one: a. zero because marginal costs equal marginal revenue. b. zero because price equals marginal costs. c. positive because price exceeds average variable costs. d. positive because price exceeds average total costs. e. positive because revenues are increasing faster than variable costs
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.
Please provide full explanation . Thank you!
Question A3 If a firm's average revenue function is greater than its marginal revenue function, then its a) average revenue function must be falling. b) average revenue function must be rising. c) average revenue function may be rising, falling or flat d) marginal revenue function is rising Question A4 For a profit-maximising monopolist, output should be increased to enhance welfare as long as: a) marginal revenue exceeds marginal cost b) marginal revenue exceeds...
Question Completion Status: QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product • maximizes profit minimizes average total cost • minimizes average variable cost QUESTION 32 If marginal cost is rising - average variable cost must be falling average fixed cost must be rising marginal product must be falling • marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output...
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...
Most questions answered within 3 hours.
-
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 8 minutes ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 1 hour ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 1 hour ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 2 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 2 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 2 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 2 hours ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 2 hours ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 3 hours ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 3 hours ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 3 hours ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 3 hours ago