Homework Answers
The correct answer is option 3.
Explanation :- From the table, we can observe that when the business produces 5 units, the marginal revenue is less than the marginal cost. The marginal revenue is 16 whereas marginal cost is 21. A lower marginal revenue compared to marginal cost suggests that extra cost of producing a unit is higher than the extra cost of selling a unit and in this case the extra cost is $5 . Hence at 5 units of output, the profit will decline by $5 compared to the profit made when the firm produces 4 units.
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Question 3 (1 point) The following data confront a business: Marginal Marginal Output Revenue Cost 16...
The following data confront a business: Output Marginal Marginal Revenue Cost 0 16 10 2 16...
The following data confront a business: Output Marginal Marginal Revenue Cost 0 16 10 2 16 9 3 16 13 4 16 16 5 16 21 Consider the table above. A profit-maximizing business will produce that quantity of output equal to 5 units equal to 4 units at which marginal revenue exceeds marginal cost by the widest margin equal to 3 units at which price equals marginal revenue
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 profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost....
A profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost. o marginal revenue is positive. o the cost of producing an additional unit exceeds the marginal revenue derived from the unit. o economic profit is more than zero.
Assume that the short-run cost and demand data given in thetable below confront a monopolistically...
Assume that the short-run cost and demand data given in the table below confront a monopolistically competitive firm selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.Total Marginal Quantity MarginalOutput cost cost demanded Price revenue0 $ 75 0 $1801 120 $_____ 1 165 $_____2 135 _____ 2 150 _____3 165 _____ 3 135 _____4 210 _____ 4...
QUESTION 47 Which of the following correctly defines marginal revenue? Marginal revenue is the additional revenue...
QUESTION 47 Which of the following correctly defines marginal revenue? Marginal revenue is the additional revenue from a unit increase in output and sales. Marginal revenue is the price at which the firm sells the last unit of the good. Marginal revenue is the change in revenue from a unit increase in the price of the good. Marginal revenue is the additional revenue earned from an increase in demand for the g Marginal revenue is the difference between price and...
Question 5 2 pts When marginal revenue intersects marginal cost on a graph, a monopolist prices...
Question 5 2 pts When marginal revenue intersects marginal cost on a graph, a monopolist prices the good at that point. a monopolist always makes an economic profit. O profits are maximized for a monopolist but not for a competitive firm. a monopolist must go up to the demand curve to find the price. O profits are maximized for a competitive firm but not for a monopolist. The following table summarizes six potential customers' ages and willingness to pay for...
need help with all of them Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from...
need help with all of them
Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from selling an additional unit of output the revenue in excess of what can be earned in the next-best alternative the last dollar needed to make zero economic profit the extra revenue generated by a $1 change in price the last dollar needed to make maximum profit Question 7 (1 point) In which of the following situations should a profit-maximizing...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $
4. A firm will begin to experience diminishing returns at the output where marginal A. cost...
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of...
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of the minimum point on the average variable cost curve is that: it is the point of indifference between producing at a loss and shutting down. it shows the amount of total cost incurred by a firm in the production process.! if the firm produces one more unit, its average variable cost will be less than its marginal cost. it is the profit-maximizing level of...
The following data confront a business: Output Marginal Marginal Revenue Cost 0 16 10 2 16 9 3 16 13 4 16 16 5 16 21 Consider the table above. A profit-maximizing business will produce that quantity of output equal to 5 units equal to 4 units at which marginal revenue exceeds marginal cost by the widest margin equal to 3 units at which price equals marginal revenue
A profit-maximizing monopolist will continue expanding output as long as: o marginal revenue exceeds marginal cost. o marginal revenue is positive. o the cost of producing an additional unit exceeds the marginal revenue derived from the unit. o economic profit is more than zero.
QUESTION 47 Which of the following correctly defines marginal revenue? Marginal revenue is the additional revenue from a unit increase in output and sales. Marginal revenue is the price at which the firm sells the last unit of the good. Marginal revenue is the change in revenue from a unit increase in the price of the good. Marginal revenue is the additional revenue earned from an increase in demand for the g Marginal revenue is the difference between price and...
Question 5 2 pts When marginal revenue intersects marginal cost on a graph, a monopolist prices the good at that point. a monopolist always makes an economic profit. O profits are maximized for a monopolist but not for a competitive firm. a monopolist must go up to the demand curve to find the price. O profits are maximized for a competitive firm but not for a monopolist. The following table summarizes six potential customers' ages and willingness to pay for...
need help with all of them
Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from selling an additional unit of output the revenue in excess of what can be earned in the next-best alternative the last dollar needed to make zero economic profit the extra revenue generated by a $1 change in price the last dollar needed to make maximum profit Question 7 (1 point) In which of the following situations should a profit-maximizing...
The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $
4. A firm will begin to experience diminishing returns at the output where marginal A. cost increases B. cost decreases. C. product increases. D. both B and C 5. Marginal cost is average variable cost when A. equal to; average total cost is minimized B. less than; total cost is maximized C. greater than; average fixed cost is minimized D. equal to; average variable cost is minimized. 6. Assume Dell Computer Company operates in a perfectly competitive market producing 5,000...
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of the minimum point on the average variable cost curve is that: it is the point of indifference between producing at a loss and shutting down. it shows the amount of total cost incurred by a firm in the production process.! if the firm produces one more unit, its average variable cost will be less than its marginal cost. it is the profit-maximizing level of...
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