When a firm has the power to establish its price Select one: a. P = MR....
When a firm has the power to establish its price
Select one:
a. P = MR.
b. P = MC.
c. P > MR.
d. P < MR.
Homework Answers
Answer
Option c
P>MR
a firm has the power to establish a price if the firm has a downward-sloping demand curve and the downward sloping marginal revenue curve is double sloped than an inverse demand curve so the P>MR for the firm with a price-setting price.
Add Answer to:
When a firm has the power to establish its price
Select one:
a. P = MR....
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A metal-producing firm has market power. Its MC curve can be represented by MC=60+2q, and it...
A metal-producing firm has market power. Its MC curve can be represented by MC=60+2q, and it faces a demand curve of P=200-1.5q. What is the profit-maximizing output? Price? Provide a graph to supplement your analysis. (Note MR=200-3q). What would the price and quantity be if this market were perfectly competitive (ie. these Demand and MC curves were those for the market as a whole, with many firms)? What is the deadweight loss associated with the market power in this case?
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Economic inefficiency exists when A. MR = MC. B. P = MC. C. P = MR. D. P > MC.
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a firm in perfectly competitive market sells all its products
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(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
Please answer the multiple choice questions. Refer to the figure below. When the firm charges the reservation price to...
Please answer the multiple choice questions.
Refer to the figure below. When the firm charges the reservation price to each consumer, the additional profit equals area s/o MC D AR MR Quany Select one: a.A+D b. B+A c. C+ B C. C d. B+C+ D Refer to the figure below. The price-discriminating firm earns a higher profit by s/0 AC-MC MR D-AR MAK Quantity Select one: a.charging a lower price as time goes by. b. charging a lower price to...
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
the firm faces a constant price (P) of $60 A firm in a perfectly competitive market...
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
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...
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a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
Please answer the multiple choice questions.
Refer to the figure below. When the firm charges the reservation price to each consumer, the additional profit equals area s/o MC D AR MR Quany Select one: a.A+D b. B+A c. C+ B C. C d. B+C+ D Refer to the figure below. The price-discriminating firm earns a higher profit by s/0 AC-MC MR D-AR MAK Quantity Select one: a.charging a lower price as time goes by. b. charging a lower price to...
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
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
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