The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry.Price (dollars)2410VATCThe firm will receive $MRQuantity/timeThe firm will maximize its profit at a quantity of▼ units.DOptions: 6, 8, 9, or 10After choosing the profit maximizing quantity, the firm will charge a price ofin revenue at the profit-maximizing quantity.The total cost of production for this profit-maximizing quantity is $The maximum profit the firm can earn in this situation isHow will the situation change over time?Options: 6,8 10, or 24per unit for this output.O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost.O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity.O This market is already in long-run equilibrium, and will not change throughout time.O Losses will induce firms to leave this market until the profit maximizing price falls to zero.

Profit maximisation is a process that businesses go through to make sure the best levels of output…

Price (dollars) ying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. 10- MC +ATC MR firm will receive $ Quantity/time firm will maximize its profit at a quantity of units. D Options: 6, 8, 9, or 10 r choosing the profit maximizing quantity, the firm will charge a price of in revenue at the profit-maximizing quantity. total cost of production for this profit-maximizing quantity is maximum profit the firm can earn in this situation is will the situation change over time? (?) Options: 6, 8 10, or 24 per unit for this output. O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. O This market is already in long-run equilibrium, and will not change throughout time. Losses will induce firms to leave this market until the profit maximizing price falls to zero.

Price (dollars) ying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. 10- MC +ATC MR firm will receive $ Quantity/time firm will maximize its profit at a quantity of units. D Options: 6, 8, 9, or 10 r choosing the profit maximizing quantity, the firm will charge a price of in revenue at the profit-maximizing quantity. total cost of production for this profit-maximizing quantity is maximum profit the firm can earn in this situation is will the situation change over time? (?) Options: 6, 8 10, or 24 per unit for this output. O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. O This market is already in long-run equilibrium, and will not change throughout time. Losses will induce firms to leave this market until the profit maximizing price falls to zero.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 6PA

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