Using the graph below, calculate the firm's profits at the profit maximizing output 119 112 105 98 91 84 77 70 63 Price 56 49 42 35 28 21 14 7 0 0 80 87 174 261 348 435 522 609 696 783 870 957 1044 1131 1218 1305 1392 Quantity PMR MC AC

Q: Price Quantity Marginal Cost 60 1 30 55 2 30 50 30 45 4 30 40 30 35 30

A: A profit maximizing firm should produce up to that level of output where price = marginal cost. If…

Q: Business X is producing 100 units at a cost of 100. It then produces at additional 100 units at a…

A: Marginal cost measures the change in total cost due to a change in quantity.  i.e., Marginal cost =…

Q: Describe the four steps taken to obtain a unit profit?

A: Profit: Profit is the portion of total revenue that remains after deducting the total cost. Below is…

Q: What would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total…

A: The data presented in the question above is:- Explicit cost of the firm = $200 Implicit cost of firm…

Q: Explain the law of diminishing returns.asap

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A: Introduction  Marginal costs refer to additional to total cost when one more units of output is…

Q: Question Jake is leaving Shoe Warehouse to open his own shoe boutique. Jake currently earns $40, 000…

A: Economic profits are defined as the net gains made by the company after opportunity costs and other…

Q: Explain Homogeneous products and give more examples

A: Homogenous product: Homogenous products or homogenous goods are those goods that are similar in…

Q: Write an essay on the theory of the firm

A: The theory of the firm, a microeconomic idea in neoclassical economics, asserts that a firm exists…

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A:

Q: The following table gives you cost and revenue information for Mac & Kayla's Stacked Sandwiches,…

A: Fixed Costs(FC) are expenses that remain constant regardless of the output(Q) level or product.…

Q: One A4 page please  Explain why there are no fixed costs in the long run

A: In long run, all the fixed costs that exist in short run becomes variable hence, there is no fixed…

Q: If Hasan runs the restaurant himself and before setting up this business, he was working in a…

A: An economic profit is the difference between the revenue a commercial entity has received from its…

Q: Use the following graph to answer the next question. y A B C K MC ATC AVC To maximize profits, the…

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

Q: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

Q: Draw the cost-volume-profit diagram?

A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…

Q: The Economy Tomorrow Using the folowing graph as a reference, what will be the effect of a…

A: We have given

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: Can economic profit ever exceed accounting profit? Explain.

A: Profit is the financial gain that a business or an individual earns after deducting all expenses…

Q: g O | Output MC C b h k n a MR ATC AVC ● Use the graph and the letters in it to answer these…

A: "Every business produce in order to generate profits. While producing goods and services businesses…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: Graphically depict a purely competitive firm in the short-run. You can have the firm making a profit…

A: Perfect competition is that  type of market structure in which there many numbers of sellers and…

Q: What is profit

A: Profit = Revenue - costs

Q: Imagine Lucia runs a small business that manufactures frying pans. Assume that the market for frying…

A: In perfect competitive market firm is a price taker:  its demand curve is infinitely elastic. It…

Q: Question 1: Shown below are the graphs of the firm's marginal cost, average variable cost, and…

A: Marginal cost graph tells about the additional cost incurred with one additional unit of production.…

Q: Draw a graph including AVC to illustrate a firm that is losing money, continues to operate, and…

A: The prevailing price, which is set by the relationship of supply and demand, is shown as a…

Q: Define the break-even point. Draw it's graph and show the areas where profit and loss incur on the…

A: The break-even point is the point of production at which the total revenue of an firm is equivalent…

Q: PProblem 3-Page (174): The following table gives you information on the total cost of Mac's ice…

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Q: Suppose a resturant in a city making above normal profit in the short run. How will the market…

A: A restaurant is operating in a monopolistic competitive market structure.

Q: 1) Use the graph to answer the question below. The quantity is measured in thousands of units.…

A: As per the guidelines answer is given to the first question. (1) As per the diagram given in…

Q: With the help of an example explain the difference between accounting and economic profit. Building…

A: The term perfect t competition refers to a theoretical market structure. during a perfect…

Q: Read the following short case scenario and then answer the questions. Fatma has always loved to cook…

A: Money: Cash is a financial unit that capacities as a by and large perceived trade vehicle for…

Q: Calculate economic and accounting profit, and explain the importanceof the difference.

A: Profits are the excess of the revenue receipts over the firm’s total spending incurred during a…

Q: How does a perfectly competitive firm calculate total revenue?

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Ottawa. The following table shows the…

A: The Marginal Cost (MC) is considered as the increase in the cost incurred to manufacture a unit of a…

Q: In the short run, the firm should

A: A firm should produce in short run if the market price is greater than average variable cost.  And a…

Q: Why does exit occur?

A: When the firms earn less than their total cost of production, they make loss. If existing firms in…