Question

What defines the profit maximizing point? A Where isoprofit line is tangent with PPF B Where...

What defines the profit maximizing point?

A Where isoprofit line is tangent with PPF

B Where isoprofit equals wages

C Any point above PPF

D Any point inside PPF but on an isoprofit line

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans is A.

Isoprofit line means same profit which anyone can get by produving different level of quantities.

Thus if profit is maximised even at one point on isoprofit line then It shows locus of all profit maximisation points.

PPF shows different combination of two goods which an economy can product with given technology and resource.

Any points above PPF is unachievable and Any Point inside PPF denoted underutilisation of resources.

Thus profit is maximised when Isoprofit line os tangent to PPF.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why a profit maximizing a competitive firm produce up to the point where price equals...
Explain why a profit maximizing a competitive firm produce up to the point where price equals marginal costs.
The profit maximizing firm will hire labour up to the point​ where: A. MRP Subscript Upper...
The profit maximizing firm will hire labour up to the point​ where: A. MRP Subscript Upper L Baseline equals Upper W greater than Upper PMRPL=W>P B. Upper W equals MRP Subscript Upper L Baseline equals AR star MP Subscript Upper LW=MRPL=AR*MPL C. Upper W equals Upper P equals ARW=P=AR D. MRP Subscript Upper L Baseline equals Upper P star MP Subscript Upper L Baseline less than Upper W
The Capital Market Line is derived by drawing a tangent line from the intercept point on...
The Capital Market Line is derived by drawing a tangent line from the intercept point on the efficient frontier to the point where the expected return equals the market rate of return. Select one: True False
1. Find the slope of the tangent line to r=2+sin30 at the point where Θ=pi/4 2....
1. Find the slope of the tangent line to r=2+sin30 at the point where Θ=pi/4 2. Find the area of the region that lies inside the curve r=4*sinΘ and outside the curve r=2
For the function, find the point(s) on the graph at which the tangent line is horizontal....
For the function, find the point(s) on the graph at which the tangent line is horizontal. y=x^3-14x^2+9x+9 Select the correct choice below and if necessary, fill in the answer box to complete your choice. a. The point(s) at which the tangent line is horizontal is(are___ b. The tangent line is horizontal at all points of the graph c. There are no points on the graph where the tangent line is horizontal.
1. Find the slope of the tangent line to r=2+sin3Θ at the point where Θ=pi/4 Θ=theta...
1. Find the slope of the tangent line to r=2+sin3Θ at the point where Θ=pi/4 Θ=theta 2. Find the area of the region that lies inside the curve r=4*sinΘ and outside the curve r=2
14) For a monopoly firm, the profit maximizing output is at that level where ________ and...
14) For a monopoly firm, the profit maximizing output is at that level where ________ and the price of the product is determined from ________. A) AR=MR;AR B) AR = MR; MR C) MC = MR; AR D) MC = MR; MR E) none of the above
Which of the following statements regarding a monopolist’s profit maximizing condition is false? A) The monopolist’s...
Which of the following statements regarding a monopolist’s profit maximizing condition is false? A) The monopolist’s profit-maximizing price will be greater than marginal cost for the last unit supplied. B) A monopolist can earn positive economic profit. C)Because monopoly price is above marginal cost and a monopoly earns positive economic profit, there are no benefits to consumers in the monopoly market. D)Price equals average revenue at the profit-maximizing quantity of output.
Find the equation for (A) the tangent plane and (B) the normal line at the point...
Find the equation for (A) the tangent plane and (B) the normal line at the point P0(6,1,e) on the surface 2xlny+ylnz=4x
The PPF model is used to illustrate / explain A the idea of economic or technological...
The PPF model is used to illustrate / explain A the idea of economic or technological growth. B the idea of efficiency vs. inefficiency. C the idea of diminishing returns. D All of these. In the PPF model, if the economy is producing efficiently, A It is not possible to produce more of one good at any cost. B All consumers have their basic needs satisfied. C Total production has been maximized D There is no way to produce more...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT