For a firm, marginal revenue minus marginal cost is equal to: a) profit b) average total...
For a firm, marginal revenue minus marginal cost is equal to:
a) profit
b) average total cost
c) change in profit
d) change in average revenue
Homework Answers
Change in profit:
A firm is maximizes its profit when the marginal revenue is equal to marginal cost. The difference between marginal revenue and marginal cost (Marginal revenue - marginal cost) is equal to change in the profit. Thus, option 'c' is correct.
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For a firm, marginal revenue minus marginal cost is equal to:
a) profit
b) average total...
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus...
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service.
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of...
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of production O A. O B. is equal to the return earned on average by an entrepreneur C. is equal to total revenue minus all of the costs of production that are paid either by cash or check O D. can never be a negative amount
a firm earns zero economic profit when? A) price is equal to average variable cost B)...
a firm earns zero economic profit when? A) price is equal to average variable cost B) price is equal to average total cost C)price exceeds average total cost by the greatest amount D)marginal revenue is equal to marginal cost
Hero Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for...
Hero Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for a monopolistic firm. Assume no regulation is in place. Place box A on the graph to represent the profit or loss for the firm before regulation b. Now assume marginal cost pricing is imposed. Place box B on the graph to represent the profit or loss for the firm after marginal cost pricing is imposed. 678910111213141510 12 18 19 20 Market...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
15. When marginal cost is less than average total cost, a. marginal cost must be falling....
15. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising. 16. Which of the following is not a characteristic of a competitive market? a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited d. Each firm chooses an output level that maximizes profits. 17. If a...
profit maximization occurs where a. marginal cost crosses marginal revenue b. marginal cost crosses average revenue...
profit maximization occurs where a. marginal cost crosses marginal revenue b. marginal cost crosses average revenue c. average variable cost crosses average revenue d. average variable cost crosses marginal revenue the main difference between the short run and long run is that: a. firms earn zero profits in the long run b. the long run always refers to a time period of one year or longer c. in the long run, only one variable can be fixed d. in the...
Firms have several different concepts of revenue: total revenue, average revenue, marginal revenue, and price. For...
Firms have several different concepts of revenue: total revenue, average revenue, marginal revenue, and price. For a profit-maximizing perfectly competitive firm, which statement below is true? a. Only marginal revenue and price are equal b. Only average revenue and price are equal. OC Total revenue, average revenue, marginal revenue, and price are all equal d. None of these revenues are equal e. Average revenue, marginal revenue, and price are equal
Solution: Total revenue - price*quantity Profit- total revenue - total cost Marginal revenue change in revenue/change...
Solution: Total revenue - price*quantity Profit- total revenue - total cost Marginal revenue change in revenue/change in quantitty Average total cost-total cost/quantity Marginal Marginal Change Average al rofirevenue TotalTotal revenue cost Quantity Price profit cost 0 0 16 16 15 30 14 42 13 52 12 60 11 66 10 70 20 4 16 300 36 6 12 4210 10 501 63 з 16 84-14 4 -4 14 4 12 4 4 10.5 10 8 13 10.5 17 10 We...
The profit of a firm is maximized when: marginal cost is minimum. marginal revenue is less...
The profit of a firm is maximized when: marginal cost is minimum. marginal revenue is less than marginal cost. marginal revenue is equal to marginal cost. marginal revenue is maximum. marginal revenue is greater than marginal cost.
11. Accounting profit is equal to a. marginal revenue minus marginal cost. b. total revenue minus the explicit cost of producing goods and services. c. total revenue minus the opportunity cost of producing goods and services. d. average revenue minus the average cost of producing the last unit of a good or service.
What is economic profit? Economic profit is equal to total revenue minus the opportunity cost of production O A. O B. is equal to the return earned on average by an entrepreneur C. is equal to total revenue minus all of the costs of production that are paid either by cash or check O D. can never be a negative amount
Hero Consider the graph of demand (D), average total cost (ATC), marginal revenue (MR), and marginal cost (MC) for a monopolistic firm. Assume no regulation is in place. Place box A on the graph to represent the profit or loss for the firm before regulation b. Now assume marginal cost pricing is imposed. Place box B on the graph to represent the profit or loss for the firm after marginal cost pricing is imposed. 678910111213141510 12 18 19 20 Market...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
15. When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising. 16. Which of the following is not a characteristic of a competitive market? a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited d. Each firm chooses an output level that maximizes profits. 17. If a...
Firms have several different concepts of revenue: total revenue, average revenue, marginal revenue, and price. For a profit-maximizing perfectly competitive firm, which statement below is true? a. Only marginal revenue and price are equal b. Only average revenue and price are equal. OC Total revenue, average revenue, marginal revenue, and price are all equal d. None of these revenues are equal e. Average revenue, marginal revenue, and price are equal
Solution: Total revenue - price*quantity Profit- total revenue - total cost Marginal revenue change in revenue/change in quantitty Average total cost-total cost/quantity Marginal Marginal Change Average al rofirevenue TotalTotal revenue cost Quantity Price profit cost 0 0 16 16 15 30 14 42 13 52 12 60 11 66 10 70 20 4 16 300 36 6 12 4210 10 501 63 з 16 84-14 4 -4 14 4 12 4 4 10.5 10 8 13 10.5 17 10 We...
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