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marginal cost curve may be U-shaped. As a result, the MC curve may hit the firm's demand curve or price line at two output levels. Which is the profit maximizing output? Why
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3.1 A marginal cost curve may be U-shaped. As a result, the MC curve may hit the firm's demand curve or price line at two output levels. Which is the profit maximizing output? Why?
3.1 A marginal cost curve may be L-shaped. As a result, the MC curve may hit the firm's demand curve or price line at two output levels. Which is the profit maximizing output? Why?
10. The monopoly firm's profit-maximizing price is: determined for the quantity of output at which MR > MC by the greatest amount. given by the point on the ATC curve for the profit-maximizing quantity. given by the point on the demand curve for the profit-maximizing quantity. found where MR > MC at the monopolist's profit-maximizing quantity of output.
At a firm's current level of production, marginal revenue is greater than marginal cost (MR>MC).A profit-maximizing firm will increase prices. increase output decrease output. O shut down.
If a firm's marginal cost function is MC(Q) = (b/2) + aQ and the demand curve is P = b - aQ (where a and b are both positive numbers), then the firm's profit-maximizing quantity equals what? a) 0 b) b/(2a) c) b/(3a) d) b/(6a)
A monopolist can produce at a constant average and marginal cost of AC=MC= $5. It faces a market demand curve given by Q = 53 - P. 1) Calculate the profit maximizing price and quantity for the monopolist. 2) What would be the profit maximizing price and quantity if the industry were purely competitive 3) Suppose a second firm enters the industry (Firm 2). Assuming a Cournot model of behavior, what quantity would Firm 1 produce if it thought firm...
How do you find profit maximizing price given a marginal cost curve and a demand curve?
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
6. The Power Tires Company has man in the figure. The firm's marginal cost company has market power and faces the demand curve shown im's marginal cost and marginal revenue curve are MC = 30+32 MR = 300 -69 Price ($/tire) $300 - 100 Quantity of tires (thousands) Answer the following questions: a. What are the firm's profit-maximizing output and price? b. If the firm's demand declines to P= 240-20, what is the firm's profit- maximizing level of output and...
Figure: The Profit-Maximizing Output and Price Price, cost, marginal revenue of diamond $1,000 800 600 400 200 C MC -200 -400 8 10 16 20 Quantity of diamonds Reference: Ref 13-17 (Figure: The Profit-Maximizing Output and Price) Look at the figure The Proht-Maximizing Output and Price. Assume that there are no fixed costs and AC MC-$200. At the profit-maximizing output and price for competitor perfectly competitive industry, consumer surplus is: $6,400 O $1.600. o$0. С $3,200.
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output