6.) The figure below shows Average Cost, Demand, Marginal Cost and Marginal Revenue curves for a firm. P, MR, AC, MC B Demand G I MC AC MR Quantity a. After maximizing profits, what do the firm's costs equal? b. After maximizing profits, what does the firm's revenue equal? C. After maximizing profits, what do the firm's profit's equal?

6.) The figure below shows Average Cost, Demand, Marginal Cost and Marginal Revenue curves for a firm. P, MR, AC, MC B Demand G I MC AC MR Quantity a. After maximizing profits, what do the firm's costs equal? b. After maximizing profits, what does the firm's revenue equal? C. After maximizing profits, what do the firm's profit's equal?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 5SCQ: Explain in words why a profit-maximizing film will not choose to produce at a quantity where...

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Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.
1. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?
QUESTION 8 When the marginal-cost curve lies below the marginal-revenue curve a. the firm cannot improve its profit since revenue is already greater than cost. b. marginal revenue is greater than marginal cost, and the firm should therefore increase production to increase profits. c. marginal revenue is greater than marginal cost, and the firm should therefore decrease production to increase profits. d. marginal revenue is less than marginal cost, and the firm should therefore decrease production to increase profits. e. it is not possible for this firm to increase profits since it is failing to operate at an efficient point.
1. Table: Consider the following information for a firm Q P A. MR TR 9.50 9.00 8.50 3 8.00 4 7.50 a. Calculate AR, MR and profit for each quantity? Which type of firm is it? How much should the firm produce to maximize profit b. A student has a monthly budget of $120 to spend on either beer, which cost $6 each, or sodas, which cost $4 each. i. Find out the largest number of beers and the largest number of sodas the student could afford to purchase in one month? ii. After buying 15 sodas, how many beers that the student could afford to purchase in one month? iii. Plot each of the bundles from parts A-C on a graph that measures Beers on the horizontal axis and sodas on the vertical; connect the dots. iv. Show what happens to the budget constraint if the price of sodas rises to = $5 per soda.
3. The graph below shows the Total Revenue, Total Costs and the units of output produced by Firm A. Use the following graph to answer the questions that follow. Quantity (Units) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) 0 0 50 1 90 80 2 180 120 a. What is the Marginal Revenue of the 5th unit of output? b. What is the Fixed Cost of this firm? 3 270 170 4 360 230 5 450 300 6 540 380 7 630 470 8 720 570 c. What is the optimal production amount of this firm? (Hint: What is the condition that determines production decisions in a perfectly competitive market?) Show your mathematical work,
Question 1 A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
How much should the firm produce to maximize its profit? What is the firms AR? What is the firms MR? How much is the firms total revenue based on the profit maximization rule? How much is the firms total cost? How much is the firms total profit?
3. Based on the diagram, answer the following questions. Revenue/cost MC AVC AC 26 AR = MR 23 20 20 Output (1) Total revenue (TR) (i) Total cost (TC) (ii) Profit (iv) Type of profit is earned by this firm? Justify your answer.
7 A firm produces widgets in a highly competitive market. The current market price is $100 per widget. The firm's total and marginal cost curves are: TC = 3,000,000 + 0.001Q² MC = 0.002Q Calculate the firm's profit-maximizing quantity. a. b. What is the firm's profit or loss?
Only typed answer and please don't use chatgpt A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. What is the level of production, price, and total profit per week?
1. This graph shows a company's marginal cost and marginal revenue functions. Marginal Cost and Marginal Revenue MR, MC, $/item 100 50 50 100 150 q, items | 200 -50 A. Label the graph, showing which curve is marginal revenue and which is marginal cost. B. What value of q will maximize revenue? c. What value of q will maximize profit? D. This company is currently producing 150 items. If they produce 2 additional items, estimate how the company's profit will change. Give a complete sentence expressing your answer. E. Suppose that we know that this company's fixed costs are S2000. Sketch a graph of Revenue and Cost functions that is consistent with the graphs above of MR and MC.
Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?