a.
Q | P | TR | TC | MC | MR | ATC |
0 | 22 | 0 | 4 | nil | nil | nil |
1 | 20 | 20 | 8 | 4 | 20 | 8 |
2 | 18 | 36 | 13 | 5 | 16 | 6.5 |
3 | 16 | 48 | 19 | 6 | 12 | 6.33 |
4 | 14 | 56 | 27 | 8 | 8 | 6.75 |
5 | 12 | 60 | 37 | 10 | 4 | 7.4 |
6 | 10 | 60 | 51 | 14 | 0 | 8.5 |
7 | 8 | 56 | 69 | 18 | -4 | 9.86 |
TR = P * Q
MR =
MC =
ATC = TC/Q
b.
c. TR is maximised at a point where the MR is zero.
This occurs at 6th unit of output.
d, Revenue is maximised with MR = 0 and MC = $14.
LO10-2 7. The following table summarizes the W News, p. 223)? Price Total Quantity Demanded hizes...
17. To maximize profits, a firm must choose its quantity at the point where... a. Total revenue (TR) - total cost (TC). b. Marginal revenue (MR)= marginal cost (MC). c. MR-MC is maximized. d. TR is maximized. 18. For a profit maximizing monopoly that uses the same price for all its customers, which of the following is true at the monopoly's profit maximizing quantity? a. MR =P b. MC-P. c. MR>P. d. MC>P. e. MR<P
Suppose that the following schedule summarizes the sales (demand) and cost situation confronting a Sweezy oligopoly firm: Price $8 $10 $12 $14 $16 $17 $18 $19 $20 Quantity Demanded 9 8 7 6 5 4 3 2 1 Total Cost $128 $110 $94 $80 $68 $58 $50 $44 $40 a. Graph the demand, marginal revenue, and marginal cost curves facing the firm in a single graph. b. Identify as q*...
Refer to the graph below: Untitled.png a. What is the profit-maximizing quantity and what price will the monopolist charge? a. What is the total revenue at the profit-maximizing output level? b. What is the total cost at the profit-maximizing output level? c. What is the profit? d. What is the profit per unit (average profit) at the profit-maximizing output level? e. If this industry was organized as a perfectly competitive industry, what would be the profit- maximizing price and quantity?...
2. A. Fill in the table below. AC Quantity Total Cost Total Profit PPU TR $20 B. If this industry only has one firm, what is the profit maximizing price and quantity? C. Roughly sketch a graph of this firm's market, including MR, MC and AC curves. D. Add an appropriate demand curve for this firm to your graph At the profit maximizing price and quantity, shade in the area of the graph indicating the firm's profit.
31 of 50 (36 complete) This Question: 1 pt Suppose that the distribution of sales within an industry is as shown in the following table: Share of Total Market Sales 15 14 12 Firm 10 10 13 100% All others Total There are 13 "All others" in the industry in the above table, each of which has a share of sales equal to 1 percent. The value of the Herfindahl-Hirschman Index for this industry isEnter your response as a whole...
Price/Cost ($) 7) Monopoly II (6 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. 501 ATC AVC a. What is the firm's profit-maximizing level of output? Label this on the graph. b. What price will the monopolist charge for that level of output? Label this on the graph....
Suppose a firm producing table lamps has the following costs: Quantity 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Average Total Cost $15.00 9.75 8.25 7.50 7.75 8.50 9.75 10.50 12.00 Ben and Jerry are managers at the company, and they have this discussion: Ben: We should produce 4,000 lamps per month because that will minimize our average costs. Jerry: But shouldn't we maximize profits rather than minimize costs? To maximize profits, don't we need to take demand into...
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Management wants to adjust the production output quantity to maximize the firm's profits. What quantity should the firm aim for?Give your answer by dragging the Q line to a new position to mark the quantity at which profit is as large as possible. To refer to the graphing tutorial for this question type, please click here.
Consider a competitive rm with total costs given by TC(q) = 100 + 10q + q^2, The firm faces a market price p = 50. (a) Write expressions for total revenue TR and marginal revenue MR as functions of output q. (b) Write expressions for average total cost ATC, average variable cost AVC, and marginal cost MC as functions of output q. (c) For what value of output is ATC minimized? (d) Find the profit maximizing level of output q...
Suppose that the following schedule summarizes the sales demand station confronting an oligopolis $ 20 $ $ $ $ 10 103 an the graph below, draw the demand curve. Note: The marginal revenue curve is already drawn for you) Instruction Use the tool provided Demand to draw the demand curve point by point plot 9 points total O Price Count) Output ponied < Prev 28 of 4 Next > e here to search hp 3 4 5 6 7 8...