Q- 3. Label the curves in the diagram and answer following questions. price 16 a) What output should this firm produce in order to maximize its profit? Cost 14 12 b) What Price should this firm charge? 10 c) What is the firms' total revenue at the profit maximizing output? d) What is the firms' total cost at the profit maximizing output? 200 400 600 800 Quantity
Q: Question 11 Refer to Figure 6-1 What price will Dough! charge to maximize profits? (Write just the…
A: "For a monopoly, profits are maximized at a point where marginal revenue curve (MR) intersects the…
Q: Refer to the table below Quantity 0 1 2 3 4 5 Price $10 $10 $10 $10 $10 $10 $10 $10 8 $10 If the…
A: Total revenue is the product of price and quantity
Q: Suppose you have the information of :super market, the find the following A F H Discount product…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: 12) Below are the graphs of the Price(x), Revenue(x), Cost(x) and Profit(x) functions from above.…
A: The revenue refers to the amount that a firm gets on selling a certain amount of output at a given…
Q: A computer company produces affordable, easy to-use home computer systems and has fixed costs of…
A: Cost is the value of goods and services.
Q: 4. A puppet maker calculates that the yearly cost of running his manufactory is $14,000.…
A: “Hello, since there are multiple ubpart questions posted, we will answer first three subpart…
Q: What is the profit per unit for this firm at a quantity of nine (9) units? Price or cost $12…
A: The graph given resembles a monopolistic firm or a monopolistic competitive firm. The price per unit…
Q: 2. the price that maximizes the firm's profit 3. the firm's revenue
A: We know that the profit function is : Profit = TR - TC Profit = 80q - ( 110+ 40q +10q2 ) TR = 80q…
Q: Answer "False" or "True" each of the following. Justify by relying on graphical analysis whenever…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Mrs Tobani who was earning an annual income of K4,000 decided to go into business in 2014 by…
A: Mrs Tobani who was earning an annual income of K4,000 decided to go into business in 2014 by…
Q: 1. Based on the above information, what is the type of the market? Why? 2. Based on the above table,…
A: Below is the filled table:
Q: EXHIBIT #1 Price Quantity TC $10 40 $374 $10 41 $376 $10 42 $360 $10 43 $365 $10 44 $390 $10 45 $400…
A: Answer; Q2) Option (b) 43 units is correct
Q: n the presence of shortages, why would a firm, such as a restaurant with people waiting for a…
A: Raising prices of goods & services seems to raise the profits of the firms at a point of time.…
Q: Figure 12-18 Revenue MC and cost (dollars per unit) $40 MR ATC AVC 24 C 20 14 12 8 a 55 100 150 200…
A: A perfect competition is a market that has a large number of buyers and sellers selling homogeneous…
Q: Price and cost per unit MC e P4 ATC a P, Demand MR Q, Q, Q, Quantity
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: мсо 15 If a firm faces a downward-sloping demand curve and aims to maximise total sales revenue, it…
A: Total sales revenue is the product of price and quantity sold.
Q: a) Given that Equilibrium price is $20, Profit maximizing level of output is 150 units, Average…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: 17) What does a firm that exits its market still have to pay? A. its fixed costs B.…
A: Market A market basically refers to a place where different sellers and consumer comes in contact…
Q: Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by…
A: Total Revenue = Price × Quantity In this given that numbers of customer and prices of different…
Q: 4. Given a firm's total cost at different quantities of output, Output Level 0 1 2 3 4 5 6 7 Total…
A: ATC = TC/Q AVC = TVC/Q
Q: 11. Explain the condition of equilibrium of a firm based on marginal cost and marginal revenue.…
A: Concepts: Marginal revenue refers to the revenue earned by the firms from selling an additional…
Q: A pastries company has fixed costs of $250. The marginal cost of producing computers is $700 for the…
A: Cost is the monetary value of products and services acquired by producers and consumers. Cost is a…
Q: Suppose that the unit price of a commodity of firm X is defined by: P- 90 - Q and the total cost of…
A: The demand function depicts the inverse invers relationship between price and the quantity demanded,…
Q: Use the following demand schedule to determine total revenue and marginal revenue for each possible…
A:
Q: 45 40 35 30 ATC MC 20 15 10 MR D 1 6. 7 Quantity 1. What is the profit-maximizing output and price?…
A: Answer: (1). According to the above figure, the equilibrium occurs at point E. The equilibrium…
Q: 3-) Use the following information to answer the questions below: The Kentucky Coal Company sells its…
A: Fixed cost is that part of the total cost which is constant and does not change with respect to any…
Q: profit-maximizing quantity? 2) Below what price will the firm shut-down? 3) What are operating…
A: The firm keeps on producing as long as it is able to recover the average variable cost.
Q: Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by…
A:
Q: What is the profit-maximizing level of output? Calculate Apex’s profit. If the market price dropped…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Total Revenue Total C ost Proit/Loss/ Price( P) Quantity (TR) (TC) Break Even $3 1. 5 2 3. 8. 4 11…
A: The structure of a market where there is a large number of firms producing products that are…
Q: 1. Explain the relationship between price, marginal revenue and average revenue for a perfectly…
A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…
Q: ↑Price MC 23 20 15 ATC 12 10 D 9 12 Quаntity 15 \MR 530
A: We have given the cost and revenue curve of a profit maximizing firm. Condition for profit…
Q: 1-Which price leads to the maximum profits? A) $40,000 B) $26,000 C) $30,000 D) $39,000 2- What are…
A: The total revenue is the total receipts collected from selling the goods in the market.…
Q: QUESTION 4 The cafe manager thinks that break-even calculations could help with their pricing…
A: Given:Projected units=4000 Fixed cost=$12000 Variable cost=$0.60Now,Break-even price=Variable…
Q: The total cost when the demand that is maximized profit is $1800, fixed cost (CF) = %3D $5500, Cv =…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: 1.i) Assuming you are the managing director of a firm that produces goods: A,B and C .The price…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: A firm faces the demand schedule = 0.69 and the total cost function TC = 40 + 30q + 0.4q². %3D (a)…
A:
Q: Very briefly, what is the significance of where marginal cost equals marginal revenue? B. When…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Question attahed in image
A: Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: Quantity Total Revenue Marginal Cost $0 1 $10 $2 2 $20 $4 3 $30 $6 $40 $8 5 $50 $12 $60 $14 7 $70…
A: In the question above, it is given a table with Quantity, Total revenue and Marginal Cost. Fixed…
Q: 15. Describe the pricing policy embraced by Costco.
A: Pricing policy relates with the decision of setting prices of products and services of a company…
Q: What will the dollar amount of economic gain or economic loss be? What will be the price and…
A: The firm maximizes profit by producing at MR = MC and charges the maximum price consumers are…
Q: MC 18 AVC 16 14 13 20 Dollars
A: The Profit is maximized where the MR = MC. thus, profit maximization condition: MR = MC.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?Shakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 3401. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?
- 100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)E E on The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ2020? 10,000 Price, marginal cost (5) Pt-$5,440 Po B 0 190 20 Q=32 D Qo Quantity of cars, Q Marginal cost Isoprofit curve $150,000 Isoprofit curve 563,360 Demand curve 120 Select one: O a. Total surplus is not being maximised. Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars. O All possible gains from trade are being achieved as MQ Motors operates at its profit-maximising output and price. Od. The amount of consumer surplus is the area ADP. O e. Pareto efficient allocation is currently being achieved.80 60 70 10 MC1 00 60 50 Price and cost (dollars) 40 40 30 20 20 10 0 MC2 Demand 50 100 150 Quantity The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit? Multiple Choice • 10 to plant 1, 40 to plant 2 . 20 to plant 1, 30 to plant 2 . 40 to plant 1, 40 to plant 2 . 20 to plant 1, 60 to plant 2 20 to plant 1, 50 to plant 2 (Ctrl)
- The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 8 60 40 20 0 mớ H + 0 9 18 27 36 45 54 63 72 81 QUANTITY (Bippitybops per day) * Demand 90 B 99 108 Total Revenue (?)(b) You are the CEO for a lightweight compasses manufacturer. The demand function for the lightweight compasses is given by p = 40 – 4q²where q is the number of lightweight compasses produced in millions. It costs the company $15 to make a lightweight compass. (i) Write an equation giving profit as a function of the number of lightweight compasses produced. (ii) At the moment the company produces 2 million lightweight compasses and makes a profit of $18,000,000, but you would like to reduce production. What smaller number of lightweight compasses could the company produce to yield the same profit? Problem з2. Smile Bright toothpaste company has determined that the demand for its product depends on advertising expenditures A (in thousands of dollars) and the price charged P (in dollars) according to Q = 32A12 - 64P, where Q is the number of tubes of toothpaste sold. The company's marginal costs of production are constant and equal to 50 cents per tube. A. What levels of output, advertising expenditures, and price will maximize the firm's profits? B. Verify at the solution you have found in part A that the marginal revenue from advertising equals the price elasticity of demand.
- Table 15-4 Price per Dose $80 72 Quantity Demanded (dose) 0 1 2 3 4 5 6 24 7 16 8 Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 15-4 shows the demand and the total cost schedule for the firm. 64 56 48 40 32 Total Cost of Production (dollars) $80 Refer to Table 15-4. What is the amount of Shakti's profit? $68 $72 $124 $192 82 88 100 124 164 208 268 34025. This question refers to the figure below which shows the price, marginal cost, and average cost curves facing a perfectly competitive firm in the short run. What is the total daily revenue of the profit-maximising firm in the short run? Cost, price (Rand) a) b) c) P 20 12 8 0: R800 R2 000 R960 60 ВО 100 Output per day MC AC Price AVC4. A puppet maker calculates that the yearly cost of running his manufactory is $14,000. Additionally it costs him $60 to create each of his puppets. The price per puppet is determined by the following price-demand equation: p=500–2x a. Find the Cost equation for the total number of puppets produced and sold Find the Revenue equation for the total number of puppets produced and sold b. c. How many puppets does he need to make and sell to break even? d. Use the Cost and Revenue equations to find the Profit function What is the price that he needs to charge if he wants to sell exactly 80 puppets? e.