A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?
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A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its
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- 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 cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?p= 130 - 2Q. The firm's cost curve is C(Q) = 20 + 6Q. What is the profit-maximizing solution? The profit-maximizing quantity is O. (Round your answer to two decimal places.) The profit-maximizing price is $. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $]. (round your answer to two decimal places.) How does your answer change if C(Q) = 100 + 6Q? The increase in fixed cost O A. causes the firm to increase both the price and quantity, and profit increases. O B. has no effect on the equilibrium price and quantity, but profit will decrease. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. OD. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases.Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost.
- A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm's total revenue and total costs.Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
- A perfectly competitive firm has total revenue and total cost curves given by: TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 Find the profit-maximizing output for this firm. What profit does the firm make?The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run?A firm sells a product in a purely competitive market . The marginal cost of the product at the current output is $5.25 and the market is$5.90 . What should the firm do?
- The shapes of firms' cost curves are important because they help us determine how the firm will produce. cost curves tell us the profitability of the firm. cost curves give us an idea of what a firm's total revenues will be at different output levels. they help us understand the market that the firm is in.A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal cost. True or False?Draw the cost curves for a typical firm. For a given price, explain how the firm chooses the level of output that maximizes profit. At that level of output, show on your graph the total revenue of the firm. Show its total costs.
