Homework Answers
The output corresponding to the intersection of MR and MC curves is the profit maximising output. In this figure that output is 11 units.
The profits are the difference between the total revenue and the total cost of production. The area of rectangle for profits = (550-450)*11 = 1100
The rectangle of profits has side of (550-450)= 100 and the other side as 11 units which is the output.
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The graph presents the short-run costs and revenue for a monopolistically competitive firm. Use this information...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
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If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an...
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a monopolistically competitive firm maximizes profit in the short run by producing where price is a...
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Quest Exhibit 10-2 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 100 200 300...
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The graph below represents the costs of production for a monopolistically competitive firm. Assuming the firm...
The graph below represents the costs of production for a
monopolistically competitive firm. Assuming the firm is producing
at the profit-maximizing level of output, (Q*,P*) , where Q = 40
and P * =$16 . Assume average cost is $14.50
Question 9 The graph below represents the costs of production for a monopolisticall competitive firm. Assuming the firm is producing at the profit-maximizing level of output, (Q.,P), where Qu=40 and P =$16. Assume average cost is $14.50. profit-$__(Please only answer...
In the short run, a perfectly competitive firm produces output using capital services (a fixed input)...
In the short run, a perfectly competitive firm produces output using capital services (a fixed input) and labour services (a variable input). At its profit-maximizing level of output, the marginal product of labour is equal to the average product of labour. a. What is the relationship between this firm's average variable cost and its marginal cost? O Average variable cost is higher than marginal cost O Average variable cost equals marginal cost O Average variable cost is less than marginal...
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal...
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal cost. below marginal cost. equal to marginal revenue equal to marginal cost.
The following table presents cost and revenue information for a firm operating in a competitive industry...
The following table presents cost and revenue information for a firm operating in a competitive industry Use this table to answer the following questions. (Use the following table. It will not be graded.) Quantity Total Cost Total Revenue Marginal Revenue Profit/Loss 0 1 $4.00 $5.50 $6.50 $8.00 $10.00 $12.50 $15.50 $19.00 $23.00 Price $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 Question 1.a What is the firm's profit-maximizing (or loss-minimizing) quantity? [10 points) Question 1.b When the firm produces...
P10. A perfectly competitive firm has the following fixed and variable costs in the short run....
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The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
Suppose there is a monopolistically competitive market with n identical firms, such that each firm produces the same quantity, q. Further, the market is in the monopolistically competitive long-run equilibrium. You are given the following: Inverse market demand: P 10-Q Total market output: Qnxq Marginal revenue: MR 10n+ 1)xq Total cost: C(q)-5+q Marginal cost: MC 2xq In long-run equilibrium, each firm earns zero economic profit. In long-run equilibrium, the number of firms, n, is and each firm produces units) of...
Quest Exhibit 10-2 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 100 200 300 400 500 Quantity of output (units per week) Comparing the monopolistically competitive firm in Exhibit 10-2 to the long-run profit-maximizing outcome for a perfectly comp form with a price of $15 per unit and a quantity of 600, a. the profit earned by the monopolistically competitive firm is higher than that of the perfectly competitive firm the marginal revenue of the monopolistically competitive firm...
The graph below represents the costs of production for a
monopolistically competitive firm. Assuming the firm is producing
at the profit-maximizing level of output, (Q*,P*) , where Q = 40
and P * =$16 . Assume average cost is $14.50
Question 9 The graph below represents the costs of production for a monopolisticall competitive firm. Assuming the firm is producing at the profit-maximizing level of output, (Q.,P), where Qu=40 and P =$16. Assume average cost is $14.50. profit-$__(Please only answer...
In the short run, a perfectly competitive firm produces output using capital services (a fixed input) and labour services (a variable input). At its profit-maximizing level of output, the marginal product of labour is equal to the average product of labour. a. What is the relationship between this firm's average variable cost and its marginal cost? O Average variable cost is higher than marginal cost O Average variable cost equals marginal cost O Average variable cost is less than marginal...
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal cost. below marginal cost. equal to marginal revenue equal to marginal cost.
The following table presents cost and revenue information for a firm operating in a competitive industry Use this table to answer the following questions. (Use the following table. It will not be graded.) Quantity Total Cost Total Revenue Marginal Revenue Profit/Loss 0 1 $4.00 $5.50 $6.50 $8.00 $10.00 $12.50 $15.50 $19.00 $23.00 Price $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 Question 1.a What is the firm's profit-maximizing (or loss-minimizing) quantity? [10 points) Question 1.b When the firm produces...
P10. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150. a. Complete the table. Output FC VC TC MCTR MR Profit/ Loss $100 100 100 100 100 440 100 $0 100 180 300 600 6100750 b. At what output rate does the firm maximize profit or minimize loss? c. What is the firm's marginal revenue at each positive level of output? Its average d What...
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