Homework Answers
Answer - Option A
Set output where marginal cost is zero
This condition is not possible. Marginal cost has to be positive. This is not the rule for deciding the output level. MR will be zero when profit is maximsed. MR = MC is the profit maxisimising condition for firm. Hence all the other three options except A are the three rules.
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Which of the following is NOT one of the three rules to choose how much output...
Question 46 2p Which of the following is true of the profit, earned by a monopolist?...
Question 46 2p Which of the following is true of the profit, earned by a monopolist? Profit is maximized along the inelastic portion of the demand curve. Normal profit is ensured where price is equal to average total cost. Normal profit is ensured where marginal cost exceeds average revenue. Economic profit is made where average variable cost equals marginal revenue. Profit is maximized where marginal revenue exceeds marginal cost. Question 47 2 pts A non-price discriminating monopolist's demand curve: is...
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Please supply as much explanation as possible, thank you so much! 4. Which of the following...
Please supply as much
explanation as possible, thank you so much!
4. Which of the following statements concerning Marginal Revenue are true? (a) Marginal Revenue > Price for any firm that faces a downward sloping demand curve (b) Marginal Revenue = 0 when the price elasticity of demand is one. (c) Marginal Revenue = Marginal Cost when profits are maximized. 5. Which ones of these statements concerning firms' short-run behavior is true? (a) If the firm makes negative profit, the...
A firm sets its output where O marginal revenue minus marginal cost is greater than zero....
A firm sets its output where O marginal revenue minus marginal cost is greater than zero. O marginal revenue minus marginal cost is less than zero. O marginal revenue minus marginal cost equals zero. O marginal revenue plus marginal cost equals zero.
0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the...
0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the quantity where: marginal revenue equals zero. elasticity of demand equals zero. elasticity of demand is greater than one. marginal revenue is maximized. average total cost is minimized. We were unable to transcribe this image
To maximize profits, a firm should set its output where its is zero. O marginal cost...
To maximize profits, a firm should set its output where its is zero. O marginal cost O variable cost O marginal profit O marginal revenue
Assume that Burger King, a fast food chain, enters into a franchise agreement. The royalty paid...
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A firm has the following total costs, where Q is output and TC is total cost:...
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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
17. To maximize profits, a firm must choose its quantity at the point where... a. Total...
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
Question 46 2p Which of the following is true of the profit, earned by a monopolist? Profit is maximized along the inelastic portion of the demand curve. Normal profit is ensured where price is equal to average total cost. Normal profit is ensured where marginal cost exceeds average revenue. Economic profit is made where average variable cost equals marginal revenue. Profit is maximized where marginal revenue exceeds marginal cost. Question 47 2 pts A non-price discriminating monopolist's demand curve: is...
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...
Please supply as much
explanation as possible, thank you so much!
4. Which of the following statements concerning Marginal Revenue are true? (a) Marginal Revenue > Price for any firm that faces a downward sloping demand curve (b) Marginal Revenue = 0 when the price elasticity of demand is one. (c) Marginal Revenue = Marginal Cost when profits are maximized. 5. Which ones of these statements concerning firms' short-run behavior is true? (a) If the firm makes negative profit, the...
A firm sets its output where O marginal revenue minus marginal cost is greater than zero. O marginal revenue minus marginal cost is less than zero. O marginal revenue minus marginal cost equals zero. O marginal revenue plus marginal cost equals zero.
0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the quantity where: marginal revenue equals zero. elasticity of demand equals zero. elasticity of demand is greater than one. marginal revenue is maximized. average total cost is minimized. We were unable to transcribe this image
To maximize profits, a firm should set its output where its is zero. O marginal cost O variable cost O marginal profit O marginal revenue
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
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
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