Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. If a firm wants to maximize her profit in the long-run, how many good will sheproduce, if the price is 3$Q12345RevenueVariable Cost Total cost MR30$36$51$25$43$MC

A firm continues with its production when it continues to earn higher marginal revenue than the…

Answered: If a firm wants to maximize her profit…

If a firm wants to maximize her profit in the long-run, how many good will she produce, if the price is 3$ 1 2 3 4 5 Revenue Variable Cost Total cost MR 30$ 36$ 51$ 25$ 43$ MC

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Related questions

Q: measures to stabilise the Vietnam’s exchange rate regime and comment on their suitability…

A: Vietnam's exchange rate regime explains how the Vietnamese dong (VND) is valued for other fiat…

Q: Using a regular labor supply curve instead of a compensated supply curve to calculate the excess…

A: Compensated Supply Curve:A compensated supply curve considers how individuals adjust their supply of…

Q: 2. Suppose GDP is $10,000 trillion, taxes are $1,500 trillion, consumption is $6,000 trillion, and…

A: When the economy is closed, GDP = C + I + G Where, C is consumption, I is investment G is government…

Q: Refer to the graph below. To achieve economic efficiency, which output level should be produced?…

A: Economic efficiency refers to the situation in market when all resources are allocated to maximise…

Q: An engineer calculated the AW values shown for retaining a presently owned machine additional years.…

A: Economic service life, often referred to as the economic life or service life, is a concept in…

Q: 1. Climate change is caused the emissions of carbon dioxide and methane gases, i.e., so- called…

A: Efficiency: Efficiency means achieving a goal at least cost to society, ensuring that the marginal…

Q: The short-run economic outcome resulting from the increase in production costs is known as Now…

A: This can be defined as a concept that shows the level of output in a market or economy where the…

Q: The quantity theory of money implies that over the long run, the inflation rate will OA. equal the…

A: A framework for comprehending price variations in connection to the availability of money in an…

Q: Refer to Figure 9.3. At what quantity is the firm maximizing profit? P AC(min) Q1 Q2 A D E Q1 B K Q2…

A: The given graph shows that the firm is perfectly competitive because the marginal revenue curve is…

Q: (1) Write down each player’s best response functions and find all the Nash equilibria. (2) For each…

A: Game theory is a critical tool for economists in understanding and analyzing strategic interactions…

Q: The stream of commerce theory of jurisdiction states that a court will have jurisdiction over a…

A: The statement given is about the “stream of commerce theory of jurisdiction”. This theory posits…

Q: What may be a consequence of laws on labor unions and employment in Western Europe that make it…

A: The management team and the human resources team are in charge of terminating employees. The last…

Q: If you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: [MUST SHOW WORK] Sellers expect the price of houses will be lower in 2024 due to high interest…

A: Market equilibrium: At market equilibrium, demand equals supply. Or at the market the equilibrium…

Q: Assume that the Vietnam places a strict quota on goods imported from Chile and that Chile does not…

A: Market Prices:The prices of products and services in a free market depend on the supply and demand…

Q: Consider the country of Trelawney. In this country the demand for money increases but the central…

A: Central bank refers to the insitution of an economy that uses its monetary policy in order to…

Q: 7. An externality occurs when the benefits or costs of an economic activity are external and not…

A: The externality is defined as the cost or benefit that is unrelated to the third party involved. It…

Q: Occupational Health and Safety Legislation authorizes Governments to establish and enforce…

A: Healthcare, in essential terms, is the method for offering medical sorts of help and respect for…

Q: Use the following estimates of the price elasticity of demand (Ed), income elasticity (Ei and cross…

A: Price elasticity of demand:It refers to the responsiveness or the effect of prices on the demand for…

Q: If private sector businesses suddenly lose confidence in the economy, Keynes argued that this would…

A: Investment spending increases the aggregate demand curve. The reason is that investment in…

Q: Suppose that when the price of good X increases from $500 to $660, the quantity demanded of good Y…

A: The elasticity of demand refers to the responsiveness of quantity demanded with respect to a change…

Q: Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee.…

A: Convergence: Convergence refers to the idea that poorer or less developed countries will, over time,…

Q: In the short-run if there is a surplus in the market for a product, the rationing function of price…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Which of the following statements about a perfectly competitive industry in long-run equilibrium is…

A: A perfectly competitive firm:A perfectly competitive firm is a firm where there are many sellers and…

Q: The market equilibrium quantity is tons of bolts, but the socially optimal quantity of bolt…

A: Externalities occur when there is an indirect impact on a party that is not directly related to the…

Q: What term is used to describe goods that can replace each other to some extent, so that a rise in…

A: Substitute goods: 2 goods X and Y are substitutes if price of good X and demand for good Y are…

Q: 3. The effect of negative externalities on the optimal quantity of consumption Consider the market…

A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…

Q: what is the relationship between the financial well-being of the industry and availability of…

A: Healthcare is a wide term that envelops a scope of services and practices pointed toward keeping up…

Q: The long-run average total cost curve Multiple Choice O can be derived by summing horizontally the…

A: The long-run average total cost (LRATC) curve is a curve that shows the lowest cost at which a firm…

Q: P=(MC)/(1+(1//E_(d)))

A: A monopolist is a market structure in which there is only one seller in the market and hence would…

Q: Exercise 5 For each of the production functions below: (1) find the marginal product of labor (i.e.,…

A: Production function : q (L ,K ) = 5L0.75K0.25Where , L : labor input K : Capital input Hi there , as…

Q: ABC Global Technologies is exploring investment opportunities for $10 M. The company would like to…

A: The annual interest rate represents the percentage cost or return on borrowed or invested capital…

Q: Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the…

A: The demand is defined as the desire of an individual to buy a product. The individual must have the…

Q: a. Compute the opportunity cost in forgone consumer goods (millions of pounds of butter) for each…

A: Opportunity cost is the forgone value of second best opportunity in order to gain best opportunity.…

Q: a. At which point (s) is this society producing some of each type of output but producing…

A: PPC or PPF are the curve which shows possible combinations of two goods that a country can produce…

Q: Refer to the graph for a private closed economy. In this economy, investment is. O $200 billion.…

A: The equilibrium is where the planned spending is equal to real GDP. The planned spending is equal to…

Q: Greg's Ice Cream produces 1160 gallons of ice cream per day. Each employee works one hour and has a…

A: Total output = 1160 gallons of ice creamTotal output = No. of hours each employee work * No. of…

Q: Consider a tiny hypothetical economy composed entirely of the following people: Kevin, Maria, Rajiv,…

A: The Bureau of Labor Statistics (BLS) sets the criteria for describing who is employed and who is…

Q: If a good is an "inferior good", then people feel inferior when they buy it people buy less of this…

A: Inferior goods refer to those goods which demand decreases due to rise in individual income and…

Q: The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new…

A: Total cost is the sum of fixed and variable costs. The average total cost is per unit of the total…

Q: Last week, 6 swedish kroner could purchase one U.S. dollar. This week, it takes 8 to purchase one…

A: Exchange rate:The exchange rate refers to the rate or value at which one country's currency is…

Q: 130 120 110 100 + If the Fed fears inflation, it by OA. decreases aggregate supply; selling OB.…

A: Money supply:The Federal Reserve Bank regulates the money supply in the economy, thus controlling…

Q: True or False 22. The incidence of a payroll tax is borne by both employers and employees.

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: Which of the following is true about the expected real interest rate? (A) It is equal to the nominal…

A: The real interest rate is the interest rate adjusted for inflation. It addresses the nominal…

Q: PRICE (Dollars per unit) X 360 180 38- 0 Between Y and Z W True 25 False X For each of the regions,…

A: Price Elasticity of Supply measures the percentage change in quantity supplied of a good or service…

Q: 12. In the television show Scrubs, the main character J. D. is a competent and knowledgeable doctor.…

A: Incentive: A motivating factor or reward that encourages individuals to take specific actions or…

Q: How does the graph you've just explored show the equivalence of a tariff and an import quota? The…

A: A tariff is essentially a fees that is placed on the price of the good.A quota is a limit to the…

Q: A decrease in both the equilibrium price and the equilibrium quantity of pasta is best explained by…

A: An equilibrium is defined as the balance of market forces such as demand and supply. If the demand…

Q: In the neoclassical Supply and Demand model, what is meant by shortage? Group of answer choices…

A: Imbalances in the market reflect differences between supply and demand, leading to potential…

Q: In January 2017, the National Retail Federation reported that "Holiday retail sales during November…

A: Consumption behavior insinuates the exercises and decisions that people and households make as for…

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

If a firm wants to maximize her profit in the long-run, how many good will she
produce, if the price is 3$
Q
1
2
3
4
5
Revenue
Variable Cost Total cost MR
30$
36$
51$
25$
43$
MC

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define profit maximization point

VIEW

Step 2: Determine the quantity at which profit is maximized when revenue is $3.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
How does fixed cost affect marginal cost? Why is this relationship important?
Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.
Cost Per Year Q₁ O Q₂ QQQQ O Q4 TC VC At what level of output does average total cost equal marginal cost? FC Output
Completed 58 out of 60 uestion 31 of 60 If output falls below equilibrium, marginal cost will be higher than the price. O True O False LEGO
A small factory produces a small toy with a fixed cost of S10,000month. If the factory manager wants to have a profit of $2 per unit, the revenue is $15unit and variable cost is $5/unit what is quantity to achieve this profit?
K Total revenue at the profit-maximizing level of output is OA $1,200 OB. $2,500 OC. $4,800 OD, $6,000. Revenue and cost (dollars per unit) $20 11 10 200 250 300 ATC AVC Quantity
2AAWO AC I4 17.1 REVENUE, COST, AND PROFIT APPLICATIONSITSO RSYHAHD 797 20 A firm sells each unit of a product for $50. The total cost of producing x (thousand) units is described by the function C(x) = 10 – 2.5x² + x³ where C(x) is measured in thousands of dollars. (a) Use the marginal approach to determine the profit-maximizing level of output. (6) What is total revenue at this level of output? Total cost? Total profit? 1 The profit function for a firm is -000
What is the total cost associated with producing eight units of the control varlable, a (identify point B in the tablej? 34 Marginal Harginal Harginal Net Bеnefit Control Total Net Costs Benefits Benefit Total variable Benefits Cost Sepped B(Q) C(Q) MB(0) MC(0) MND (0) 900 100 800 900 100 800 2 1,700 300 800 200 600 2,400 600 1,800 700 E 400 1,000 1,500 400 500 2,000 2,000 1,800 1,400 4 600 200 3,500 500 3,900 2,100 D 600 -200 4,200 4,400 4,500 2,800 300 700 -400 800 200 800 -600 4,500 100 900 -800 10 4,500 5,500 -1,000 1,000 -1,000 Mutiple Choice 3,000 3,600 3,800 4,200
A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.
COST PER UNIT LRATC OTX Y Z OUTPUT According to the diagram above, output OY represents the firm's: Select one: O a. market potential O b. break-even point O c. minimum physical product O d. technical optimum plant size
How much would Software C cost you in the long run? $[?] Not Satisfied $5,000 Software C 20% • $20,000 Software D $8,000 Satisfaction Not Satisfied 85% $0 15% • $15,000 Enter