In order to maximize profit, a firm producing two goods that are related in consumption should...
In order to maximize profit, a firm producing two goods that are related in consumption should choose the levels of output at which
a. total marginal revenue equals total marginal cost.
b. total marginal revenue equals the marginal cost of each good.
c. the marginal revenue of each good equals total marginal cost.
d. marginal revenue equals marginal cost for each good simultaneously.
Homework Answers
Ans. d) Marginal revenue equals the marginal cost for each good simultaneously.
For every good, the marginal cost must equal the marginal revenue simultaneously in order to maximize the profits for the firm.
Add Answer to:
In order to maximize profit, a firm producing two goods that are
related in consumption should...
In order to maximize profit, a firm (in any market structure) should produce where A. Price...
In order to maximize profit, a firm (in any market structure) should produce where A. Price equals marginal cost B. Marginal revenue equals marginal cost C. Price equals average total cost. D. Average total cost is minimized
2. (30 pts) There are two firms in a market, producing the same good. The firms...
2. (30 pts) There are two firms in a market, producing the same good. The firms simultaneously choose their output levels, qı for firm 1 and q2 for firm 2. The price adjusts according to the inverse demand function p= 65 – (91 +92). Each firm has a per-unit (average) cost of 5. Each firm's payoff is its profit. a. (5 pts) Find firm l's profit as a function of qı and q2 (profit equals revenue minus total cost). b....
If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an...
If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an economic profit in the short run: Select one: a. marginal revenue is less than marginal cost. b. price is less than average total costs. c. price is less than marginal cost. d. marginal revenue equals marginal cost.
24. In a competitive industry the market price of output is $24. A firm is producing...
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
If a perfectly competitive firm is producing 2,000 units and , at the 2,000th unit, the...
If a perfectly competitive firm is producing 2,000 units and , at the 2,000th unit, the difference between marginal revenue and marginal cost (MR-MC) is zero, which of the following is true? A) The firm should exactly double production to maximize profit B) The firm should decrease production to maximize profit C)The firm is maximizing profit D)The firm should increase production to maximize profit
Question 1. A perfectly competitive firm seeking to maximize its profits would want to maximize the...
Question 1. A perfectly competitive firm seeking to maximize its profits would want to maximize the difference between? Select one: a. either a or d. b. its marginal revenue and its marginal cost. c. its total revenue and its total cost. d. its average revenue and its average cost. e. its price and its marginal cost. Question text 2. A profit-maximizing monopolist sets? Select one: a. output where demand equals average total cost. b. output where marginal cost equals average...
A firm sells two goods (X and Y) that are related in consumption. The estimated demand...
A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are: PX = 20 – 0.1QX – 0.005QY PY = 70 – 0.3QY – 0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY What are the profit-maximizing levels of output for the two goods? QX = 20, QY = 10 QX = 41, QY = 24 QX = 56, QY = 24 QX = 51, QY = 74 none...
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is...
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is function of Q1 and Q2 Find Qi and Q2 to maximize total profit. Use the sccond-order conditions to verify that profits are maximized for these extreme values. What is the maximum of the profit π
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
Please explain the process to solve these A firm in a perfectly competitive industry is producing...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
2. (30 pts) There are two firms in a market, producing the same good. The firms simultaneously choose their output levels, qı for firm 1 and q2 for firm 2. The price adjusts according to the inverse demand function p= 65 – (91 +92). Each firm has a per-unit (average) cost of 5. Each firm's payoff is its profit. a. (5 pts) Find firm l's profit as a function of qı and q2 (profit equals revenue minus total cost). b....
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is function of Q1 and Q2 Find Qi and Q2 to maximize total profit. Use the sccond-order conditions to verify that profits are maximized for these extreme values. What is the maximum of the profit π
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 34 minutes ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 33 minutes ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 38 minutes ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 48 minutes ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 1 hour ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 1 hour ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 1 hour ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 1 hour ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 1 hour ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 1 hour ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 1 hour ago -
How much money should be invested today in order to have $8340
at the end of...
asked 1 hour ago