show a diagram where society is better off with profitmax over rev max
Answer:
Profit max
MC=MR
Gives the greatest difference in total revenue and total costs. If
MC<MR, then that unit improves the firm's profits because
revenue outweighs the cost.
Rev Max
MR=0
When MR is +ve a firm increases it's revenue as output
increases.
The key goal for a perfectly competitive firm in maximizing its
profits is to calculate the optimal level of output at which its
Marginal Cost (MC) = Market Price (P). As shown in the image above,
the profit maximization point is where MC intersects with MR or P.
If the above competitive firm produces a quantity exceeding qo,
then MR and Po would be less than MC, the firm would incur an
economic loss on the marginal unit, so the firm could increase its
profits by decreasing its output until it reaches qo. If the above
competitive firm produces a quantity fewer than qo, then MR and Po
would be greater than MC, the firm would incur profit, but not to
its maximum. Therefore, the firm could increase its profits by
increasing its output until it reaches qo.
show a diagram where society is better off with profitmax over rev max
6. Do you think the U.S. as a society is better or worse off on net as a result of the gains in productivity in manufacturing? Explain.
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disregard the diagram portion of the equation, only need max
bending moment in kN.m
Consider the beam and loading shown where P-10 KN 2 KN co 0.3 m 0.3 m 0.3 m 0.3 m From the figures given below, identify the correct bending moment diagram and determine the maximum absolute value of the bending moment
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