Which of the following will result in the firm maximizing its profits? Production of the quantity...
Which of the following will result in the firm maximizing its profits? Production of the quantity of output which will maximize the firm's revenues. Production of the quantity of output which will minimize the firm's costs. Production of the quantity of output which equates the revenue generated with the costs incurred of the last unit produced. Production of the quantity which results in the firm utilizing all of its productive capacity.
Homework Answers
Production of the quantity of output which equates the revenue generated with the costs incurred of the last unit produced will result in the firm maximizing its profits. Hence, option(C) is correct.
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Which of the following will result in the firm maximizing its profits? Production of the quantity...
Suppose a firm producing table lamps has the following costs: Quantity 1,000 2,000 3,000 4,000 5,000...
Suppose a firm producing table lamps has the following costs: Quantity 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Average Total Cost $15.00 9.75 8.25 7.50 7.75 8.50 9.75 10.50 12.00 Ben and Jerry are managers at the company, and they have this discussion: Ben: We should produce 4,000 lamps per month because that will minimize our average costs. Jerry: But shouldn't we maximize profits rather than minimize costs? To maximize profits, don't we need to take demand into...
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
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.)
Currently, a monopolist's profit-maximizing output is 300 units per week. It sells its output at a...
Currently, a monopolist's profit-maximizing output is 300 units per week. It sells its output at a price of $65 per unit and collects $45 per unit in revenues from the sale of the last unit produced each week. The firm's total costs each week are $8,500. 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.)
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?...
At its current level of production a profit-maximizing firm in a competitive market receives $10 for...
At its current level of production a profit-maximizing firm in a competitive market receives $10 for each unit it produces and faces an average total cost of $12.5. At the market price of $10 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firm's current profit? What is likely to occur in this market and why?
7. Economists use the three-step method to determine whether a firm is generating economic profits, economic...
7. Economists use the three-step method to determine whether a firm is generating economic profits, economic losses, or zero economic profits at the ______. a.profit-minimizing level of input b.profit-maximizing level of input c.profit-minimizing level of output d.profit-maximizing level of output 8. Economists sometimes call zero economic profit a ______ rate of return. a.normal b.natural c.neutral d.negative 9.It is not likely that firms will either enter or leave the market ______. a.at positive economic profits b.at zero economic profits c.at economic...
At its current level of production, a profit-maximizing firm in a competitive market receives $15 for...
At its current level of production, a profit-maximizing firm in a competitive market receives $15 for each unit it produces and faces an average total cost of $10. At the market price of S15 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1.300 units. What is the fim's current profit? What is likely to occur in this market and why?
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot...
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot increases in the prices of any input costs that vary with the type of final product being produced costs that vary with the quantity of output being produced QUESTION 5 If a firm's marginal cost exceeds its marginal revenue, then O profit is negative the firm should shut down cutting back production will increase profits the firm should reduce its per-unit cost by increasing...
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Management wants to adjust the production output quantity to maximize the firm's profits. What quantity should the firm aim fo
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Management wants to adjust the production output quantity to maximize the firm's profits. What quantity should the firm aim for?Give your answer by dragging the Q line to a new position to mark the quantity at which profit is as large as possible. To refer to the graphing tutorial for this question type, please click here.
Suppose a firm producing table lamps has the following costs: Quantity 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Average Total Cost $15.00 9.75 8.25 7.50 7.75 8.50 9.75 10.50 12.00 Ben and Jerry are managers at the company, and they have this discussion: Ben: We should produce 4,000 lamps per month because that will minimize our average costs. Jerry: But shouldn't we maximize profits rather than minimize costs? To maximize profits, don't we need to take demand into...
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
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?...
At its current level of production, a profit-maximizing firm in a competitive market receives $15 for each unit it produces and faces an average total cost of $10. At the market price of S15 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1.300 units. What is the fim's current profit? What is likely to occur in this market and why?
QUESTION 4 The term variable costs refers to O prices of inputs that vary a lot increases in the prices of any input costs that vary with the type of final product being produced costs that vary with the quantity of output being produced QUESTION 5 If a firm's marginal cost exceeds its marginal revenue, then O profit is negative the firm should shut down cutting back production will increase profits the firm should reduce its per-unit cost by increasing...
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