Homework Answers
Answer : the firm will increase its output to increase economic profit.
When marginal revenue is greater than marginal cost, the firm can increase the output to increase the profit. If marginal revenue is less than marginal cost, then the firm should reduce its output production to increase the profit. At equilibrium, the marginal revenue equals marginal cost which is the profit maximising point.
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If a perfectly competitive firm's marginal revenue is greater than its marginal cost, the firm O...
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would...
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would raise its price in order to increase its profits. it would decrease output. U it must be currently earning economic losses. both (a) and (c) are true.
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a...
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a straight line coming out of the origin with a 45 degree slope. O C. downward sloping. O D. upward aloping CE horizontal A cartel is a group of firms acting together to output, price, and increase O A. increase; raise; marginal revenue O B. limit; lower; total revenue O c. limit: raise; economic profit O D. increase; raise; economic profit
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Suppose the...
Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Suppose the prevailing market price for this firm's product is $0.14 and the firm is currently producing 20 units of output. This competitive firm wishing to maximize its profit would Output per period TVC (S) TFC (S) 0 0 10 25 20 30 6 5 40 10 5 50 15 3. Increase output because marginal revenue is greater than marginal cost b. produce zero output because...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is equal to $25, and average variable cost is equal to $15, what should the firm do, if anything, to maximize its profit? O A. increase output O B. shut down O C. decrease output (but not shut down) OD. The firm is already maximizing profit.
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.
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...
in the drop down menu is possible or not possible A perfectly competitive firm's marginal cost...
in the drop down menu is possible or not possible
A perfectly competitive firm's marginal cost curve is upward sloping but not vertical. If the price of the product increases, in the short run it is for the firm's economic profit to decrease (or for its economic loss to increase) Which of the following statements explain the above argument? (Check all that apply.) A. It is not possible if the firm produces at any point on the marginal cost curve....
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...
Question 9.10 Consider a perfectly competitive firm. When the market price is greater than both the...
Question 9.10 Consider a perfectly competitive firm. When the market price is greater than both the firm's marginal cost and average variable cost, the firm O A Is maximizing profits O BShould shut down O CShould increase its level of output O D Should reduce its level of output
If a perfectly competitive firm's marginal revenue was less than its marginal cost, u it would raise its price in order to increase its profits. it would decrease output. U it must be currently earning economic losses. both (a) and (c) are true.
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a straight line coming out of the origin with a 45 degree slope. O C. downward sloping. O D. upward aloping CE horizontal A cartel is a group of firms acting together to output, price, and increase O A. increase; raise; marginal revenue O B. limit; lower; total revenue O c. limit: raise; economic profit O D. increase; raise; economic profit
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Suppose the prevailing market price for this firm's product is $0.14 and the firm is currently producing 20 units of output. This competitive firm wishing to maximize its profit would Output per period TVC (S) TFC (S) 0 0 10 25 20 30 6 5 40 10 5 50 15 3. Increase output because marginal revenue is greater than marginal cost b. produce zero output because...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is equal to $25, and average variable cost is equal to $15, what should the firm do, if anything, to maximize its profit? O A. increase output O B. shut down O C. decrease output (but not shut down) OD. The firm is already maximizing profit.
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.
in the drop down menu is possible or not possible
A perfectly competitive firm's marginal cost curve is upward sloping but not vertical. If the price of the product increases, in the short run it is for the firm's economic profit to decrease (or for its economic loss to increase) Which of the following statements explain the above argument? (Check all that apply.) A. It is not possible if the firm produces at any point on the marginal cost curve....
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...
Question 9.10 Consider a perfectly competitive firm. When the market price is greater than both the firm's marginal cost and average variable cost, the firm O A Is maximizing profits O BShould shut down O CShould increase its level of output O D Should reduce its level of output
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