Question

ESSAY: 1. Explain the concept of profit maximization when the marginal revenue equals marginal cost 2....

ESSAY:

1. Explain the concept of profit maximization when the marginal revenue equals marginal cost

2. Differentiate: Average Fixed Cost, Average Variable Cost, and Average Total Cost

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output...
Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a firm's total fixed cost is $500 and its total variable cost is $600. If the price of the product were $3 per unit and the firm follows its optimal strategy, the firm will earn an economic profit equal to? a. -$600 b. -$500 c. $300 d. -$1,100 e. -$400
When marginal revenue equals marginal cost, a pharmaceutical firm will function as a “maximizing” firm. Explain...
When marginal revenue equals marginal cost, a pharmaceutical firm will function as a “maximizing” firm. Explain why this happens. Use both algebraic and diagrammatic expositions. Does this rule apply to a health care provider? Explain.
Why is the level of output at which marginal revenue equals marginal cost the profit maximizing...
Why is the level of output at which marginal revenue equals marginal cost the profit maximizing output?
Graph the marginal cost curve, average variable cost curve, marginal revenue curve ,average total revenue curve,...
Graph the marginal cost curve, average variable cost curve, marginal revenue curve ,average total revenue curve, profit, and quantity produced for a firm that has these 3 characteristics 1. In a competitive market 2. Sell an ordinary good 3. 2 Input Cobb Douglas in which one variable is fixed in the short run
Why is the level of output where marginal revenue equals marginal cost called as the profit-maiximizing...
Why is the level of output where marginal revenue equals marginal cost called as the profit-maiximizing output under either perfect competition or monopoly ? prove it in a logical way
Question 16 On a perfectly competitive market, if marginal cost is constant, A. then marginal cost...
Question 16 On a perfectly competitive market, if marginal cost is constant, A. then marginal cost equals average total cost. B. then average cost equals total cost. C. then marginal cost equals average variable cost. D. then fixed cost is zero. 17 A perfectly competitive firm should always shut down if: A. it makes a positive profit, but smaller than the fixed costs. B. it makes a negative profit that is larger than its fixed costs. C. it makes a...
When marginal profit is zero, Average profit: a) equals marginal profit. b) is positive. c) is...
When marginal profit is zero, Average profit: a) equals marginal profit. b) is positive. c) is zero. d) can be positive, negative, or zero.
1. Show marginal cost, average cost, demand and marginal revenue for a monopolist earning zero economic...
1. Show marginal cost, average cost, demand and marginal revenue for a monopolist earning zero economic profit. Be very clear about profit maximizing output. 2. Show what happens to a monopolist's profits when the price of the fixed input, i.e., the rental rate, increases.
A general rule of thumb for profit- or utility maximization is to: a.) operate where marginal...
A general rule of thumb for profit- or utility maximization is to: a.) operate where marginal benefit equals marginal cost. b.) operate where marginal cost exceeds marginal benefit c.)ignore opportunity costs d.)operate where marginal benefit exceeds marginal cost
Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average...
Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average Variable Costs 0 0 - 10 - 10 - - - 1 8 24 14 24 2 16 34 10 17 3 24 42 8 14 4 32 49 7 12.25 5 40 57 8 11.4 6 48 67 10 11.17 7 56 81 14 11.57 8 64 99 18 12.38 9 72 123 24 13.67 f. You have now removed the fixed costs...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT