A profit-maximizing firm in the short run will expand output until marginal cost begins to rise until total revenue equals total cost until marginal cost equals average variable cost as long as marginal revenue is greater than marginal cost

Q: Price, marginal revenue, marginal cost, average total cost W D B U MC J KL ATC a) The firm's…

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Q: If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm…

A: A firm will maximize profit where marginal revenue is equal to marginal cost.

Q: For a firm in Perfect Competition, the Industry Price is equal to $12, Average Total Cost is equal…

A: Short-Run Supply Curve: The short-run supply curve shows the relationship between the market price…

Q: A rational firm operating in a perfectly competitive market has its demand and total cost function…

A: Total Cost Function : TC=50+25Q-40Q2 Total Cost can be decomposed into two parts: 1) Total Fixed…

Q: n the short run a firm can minimize costs by shutting down. minimize costs by going out of business.…

A: The firm will continue to produce in the short run as long as it is able to recover the variable…

Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…

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Q: A firm has the following revenue and cost functions. TR= 60 - Q - Q2 TC = 1/2 Q2 - 32 Q + 30…

A: TR= 60 - Q - Q2 TC = 1/2 Q2 - 32 Q + 30

Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC =1⁄2Q2 +30Q +30 Determine…

A: Profits = Total Revenue - Total Cost Profit is maximium when: marginal revenue = marginal cost

Q: The cost function for a firm in perfect competition is given as C(Q) =Q³-8q²+5 . Find the profit…

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Q: Suppose that price is below the minimum average total cost (ATC) but above the minimum average…

A: In perfect competition, every seller in the market would be a price taker. A perfectly competitive…

Q: If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its…

A: Total cost is the sum of variable cost and the fixed cost. Fixed cost is the cost that remains same…

Q: A profit-maximizing firm in the short run will expand output Multiple Choice   until marginal cost…

A: Profit refers to the difference between the total revenue and the total cost that a seller or…

Q: Calculate marginal profit if marginal cost and marginal revenue are $44 and $80 respectively

A: The data presented in the question above is:- Marginal revenue = $80 Marginal cost = $44 Marginal…

Q: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The…

A: In a perfectly competitive market, firms do not have any market power so price is constant. Price is…

Q: TRUE OR FALSE? A decreasing cost industry has a long run supply curve that is upward sloping.

A: In a market, decreasing cost industry refers to the one that has the ability o reduce its average…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Marginal Revenue is the cash a firm makes for each extra deal. As such, it decides how much a firm…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: demand function is given by P = 25 - Q and Total cost function TC = Q. Calculate firms price and…

A: In a perfect competition, the equilibrium condition is where price is equal to marginal cost.

Q: The data in the table to the right give the total cost, C, and marginal cost, MC, for a profit…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the…

A: Perfectly competitive industry It refers to a industry in which there are large number of buyers and…

Q: Consider a competitive firm with a short-run cost function C(q)=100q-q^2+(1/5)q^3+450 (a) Suppose…

A: We will use short run profit maximisation condition for perfectly competitive market to solve this…

Q: You operate a business subject to Perfect Competition.  The price of the good is P =40, your…

A: Given, Price (P) = 40 MC = 10 + 0.05Q Fixed costs = 5000

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: X4

A: In a market, decreasing cost industry refers to the one that has the ability o reduce its average…

Q: If demand function is given by P = 30 - Q and Total cost function TC = Q. Calculate firms price and…

A: Under perfect competition profit maximization occurs when Price = Marginal cost

Q: If demand function is given by P = 25 - Q and Total cost function TC = 3Q. Calculate firms price and…

A: Under perfect competition profit maximization will occur when  Price = Marginal cost

Q: If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm…

A: A firm will maximise profit where marginal revenue is equal to marginal cost.