Homework Answers
Revenue is the total sales proceeds of a firm. Therefore, revenue = no. of units produced * price per unit.
Profit is the difference between the total revenue and total cost. Total profit = total revenue - total cost.
In this example, total revenue = no. of units produced * price per unit = 20 * $4 = $80.
Total cost = no. of units produced * average cost = 20 * $2.5 = $50
So, profit = total revenue - total cost = $80 - $50 = $30.
Add Answer to:
2. Differentiate between the terms "revenue" and "profit." Assume that a firm sells 20 units of...
2. Suppose the Home firm is considering whether to enter the Foreign market. Assume that the...
2. Suppose the Home firm is considering whether to enter the Foreign market. Assume that the Home firm has the following costs and demand: Fixed costs = $240 Marginal costs = $10 per unit Local price = $35 Local quantity = 20 Export price = $15 Export quantity = 10 a. Calculate the firm's total costs from selling only in the local market (Home). b. Calculate the firm's profit from selling only in the local market (Home). c. Now suppose...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indi...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indicated in the following table. Answer questions a through c using the data from this table. TVC-Total variable Costs. TC=Total Costs: AFC=Average Fixed Costs; AVC=Average Variable Costs; ATC-Average Total Costs; MC-Marginal Costs Total Output Total Variable Cost $ TVC TC 0 $5.00 $8.00 $10.00 $11.00 $13.00 $16.00 $20.00 Total Cost $ Average Average Average Total Cost Cost $ MC Marginal Fixed CosVariable $ AFC Cost...
Connect Problem CP 12-7 (algo) Currently, a monopolist's profit-maximizing output is 400 units per week and...
Connect Problem CP 12-7 (algo) Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. Instructions: Enter your answers as whole numbers a. What are the firm's weekly economic profits? b. What is the firm's marginal cost?...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production of the 10th it fo r of outputut the firm produse marinat revenue of land them the firm's profi not the 100th unit of t h e firm's average total costs C. Firm's profit-maximize ve futut is less than 100 units. d. production of the 101st unit of output the lost unit of output must increase the firm's...
D 11. A firm sells 30 units of its product at a price of $5 per...
D 11. A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost of $20. The firm's profit is $50 $100 $150 $30
A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q...
A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by TC = 60Q + 25,000. Assume that the firm maximizes profits. Calculate the level of production, price, and total profit per week.
Consider a profit-maximising firm that has the good fortune of being a monopolist. The firm sells...
Consider a profit-maximising firm that has the good fortune of being a monopolist. The firm sells output in a domestic market and exports to a foreign market as well. The domestic market demand curve given as yp (p) = 20 - 2pp and the foreign market demand curve is given as yf(p) = 20 -PF. Total output is y = yp + yr. The monopolist faces a cost function given by c = + y2 + 20. a) Derive the...
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly...
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 25,000 Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
A firm faces the following average revenue (demand) curve: P= 125 -0.02Q where Q is weekly...
A firm faces the following average revenue (demand) curve: P= 125 -0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 45Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
Currently, a monopolist's profit-maximizing output is 200 units per week. It sells its output at a...
Currently, a monopolist's profit-maximizing output is 200 units per week. It sells its output at a price of $60 per unit and collects $30 per unit in revenues from the sale of the last unit produced each week. The firm's total costs each week are $7500. Given this information, the firm's maximized weekly economic profits are What is the firm's marginal cost? $ c. What is the firm's average total cost? (Enter your response as a whole number.)
2. Suppose the Home firm is considering whether to enter the Foreign market. Assume that the Home firm has the following costs and demand: Fixed costs = $240 Marginal costs = $10 per unit Local price = $35 Local quantity = 20 Export price = $15 Export quantity = 10 a. Calculate the firm's total costs from selling only in the local market (Home). b. Calculate the firm's profit from selling only in the local market (Home). c. Now suppose...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indicated in the following table. Answer questions a through c using the data from this table. TVC-Total variable Costs. TC=Total Costs: AFC=Average Fixed Costs; AVC=Average Variable Costs; ATC-Average Total Costs; MC-Marginal Costs Total Output Total Variable Cost $ TVC TC 0 $5.00 $8.00 $10.00 $11.00 $13.00 $16.00 $20.00 Total Cost $ Average Average Average Total Cost Cost $ MC Marginal Fixed CosVariable $ AFC Cost...
Connect Problem CP 12-7 (algo) Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. Instructions: Enter your answers as whole numbers a. What are the firm's weekly economic profits? b. What is the firm's marginal cost?...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production of the 10th it fo r of outputut the firm produse marinat revenue of land them the firm's profi not the 100th unit of t h e firm's average total costs C. Firm's profit-maximize ve futut is less than 100 units. d. production of the 101st unit of output the lost unit of output must increase the firm's...
D 11. A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost of $20. The firm's profit is $50 $100 $150 $30
Consider a profit-maximising firm that has the good fortune of being a monopolist. The firm sells output in a domestic market and exports to a foreign market as well. The domestic market demand curve given as yp (p) = 20 - 2pp and the foreign market demand curve is given as yf(p) = 20 -PF. Total output is y = yp + yr. The monopolist faces a cost function given by c = + y2 + 20. a) Derive the...
A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 25,000 Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
A firm faces the following average revenue (demand) curve: P= 125 -0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 45Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
Most questions answered within 3 hours.
-
Which of the following describes a private network?
1. A wide area network (WAN) linking sites...
asked 4 minutes ago -
The purpose of this
lab: Wireshark Intro Lab
is to get students
familiar with the use of...
asked 13 minutes ago -
Question 3
A 50 percent deduction is allowed for amounts paid or incurred for
dues and...
asked 11 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 26 minutes ago -
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 25 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 37 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 33 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 36 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 47 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 57 minutes ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 57 minutes ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 1 hour ago