if a price searcher operates at MC=P, it will cause MC to exceed MR. please explain...
Homework Answers
For a price searcher firm, price is always greater than marginal revenue. This implies that, when it uses MR = MC, it gets a price which is greater than both MC and MR. But when it sets a price according to P = MC, it gets a price which is greater than marginal revenue but is equal to marginal cost. In this manner the resultant marginal cost will exceed marginal revenue and so profit is not maximized.
This is seen at A where price is P = MC and corresponding marginal revenue at B is MR. Here P = MC is greater than MR and the difference is shown by AB
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a price searcher operates at MC=P, it will cause MC to exceed MR.
please explain...
Let P = price, MR = marginal revenue, MC = marginal cost, and ATC = average...
Let P = price, MR = marginal revenue, MC = marginal cost, and ATC = average total cost. In monopolistic competition, which of the following most accurately describes the long-run equilibrium conditions for a firm? Group of answer choices P > ATC, MR = MC, and P > MC P > ATC, MR > MC, and P = MC P = ATC, MR = MC, and P > MC P = ATC, MR = MC, and P = MC P...
PART 1 Costs & Revenue Price MC The INDUSTRY is the price maker The SINGLE FIRM...
PART 1 Costs & Revenue Price MC The INDUSTRY is the price maker The SINGLE FIRM IS a price taker S ATC ARMR D Q Q Quantity Output Price Costs Revenue The INDUSTRY is the TSINGLES a proto MC pro NOIVAL proft in the US ATC AR-MR P1 AR-MR D Q01 Q10 Output a. What type of market structure is shown in the diagram above and how did you determine this? b. What are the firm's short run profit maximizing...
Economic inefficiency exists when A. MR = MC. B. P = MC. C. P = MR....
Economic inefficiency exists when A. MR = MC. B. P = MC. C. P = MR. D. P > MC.
Graph a comparison of the short-run and long-run profits, price, quantity, MR and MC of a...
Graph a comparison of the short-run and long-run profits, price, quantity, MR and MC of a Monopoly and a PC firm. Which type of firm is more efficient and why?
Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit...
Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
Use the MR/MC approach and the appropriate graph to show the profit maximizing price and quantity...
Use the MR/MC approach and the appropriate graph to show the profit maximizing price and quantity for a firm in monopolistic competition. Assume that the firm is making economic profits in the short-run. Explain what happens to the economic profits in the long-run.
Mr. Mc Connell carries a diagnosis of poorly controlled asthma.
Question 15 Mr. Mc Connell carries a diagnosis of poorly controlled asthma. The Nurse Practitioner is checking the electronic health record and notes that his usage of Albuterol is excessive. Mr. Mc Connell is going through 1 canister every 10 days. What would your first steps be and what recommendations would you give this patient? Please explain your rationale.Question 16 Mr. Jackson carries a diagnosis of coronary artery disease and sometimes experiences exertional angina. When this occurs he uses 1 tablet of...
Answer A-H Please Answer the following Questions for a Monopoly Firm. Price Quantity TR MR MC...
Answer A-H Please Answer the following Questions for a Monopoly Firm. Price Quantity TR MR MC TC Profit $15,000 0 ---- ---- $50,000 14,000 1 $52,000 13,000 2 $53,000 12,000 3 54,000 11,000 4 $2,000 10,000 5 59,000 9,000 6 4,000 8,000 7 $69,000 7,000 8 $8,000 6,000 9 5,000 10 4,000 11 $18,000 3,000 12 $143,000 a) Fill in the missing information above for this Monopoly Firm for its monthly production. Note there are no numbers for MC and...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
QUESTION 6 Price, ATC, AVC and MC (per unit) M P4 P P2 P 91 92...
QUESTION 6 Price, ATC, AVC and MC (per unit) M P4 P P2 P 91 92 93 94 Os Quantity (per period) Based on the graph above, what is the curve for the perfectly competitive market? O MC O AVC MR 0 0 O ATC
PART 1 Costs & Revenue Price MC The INDUSTRY is the price maker The SINGLE FIRM IS a price taker S ATC ARMR D Q Q Quantity Output Price Costs Revenue The INDUSTRY is the TSINGLES a proto MC pro NOIVAL proft in the US ATC AR-MR P1 AR-MR D Q01 Q10 Output a. What type of market structure is shown in the diagram above and how did you determine this? b. What are the firm's short run profit maximizing...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
QUESTION 6 Price, ATC, AVC and MC (per unit) M P4 P P2 P 91 92 93 94 Os Quantity (per period) Based on the graph above, what is the curve for the perfectly competitive market? O MC O AVC MR 0 0 O ATC
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