Question

A monopolist's maximized rate of economic profits is $200 per week. Its weekly output is 200 units, and at this output rate, the firm's marginal cost is $39 per unit. The price at which it sells each unit is $51 per unit.

At these profit and output rates, the firm's average total cost is $___(Enter your response as a whole number.)

At these profit and output rates, the firm's marginal revenue is $___(Enter your response as a whole number.)

Answer #1

Economic Profit = Total Revenue - Total Cost

Given : economic Profit = 200

Total Revenue = Price* Quantity = 51*200 = $10,200

=> 200 = 10,200 - Total Cost

=> Total Cost = $10,000

Average Total Cost = Total Cost/Quantity = 10,000/200 = $50

Hence, Firm's Average Total Cost = $50

(ii)

In order to maximize profit a monopolist produces that quantity at which Marginal revenue = Marginal Cost.

Here Marginal Cost = $39

Hence Marginal revenue = Marginal Cost = $39

Hence, At these profit and output rates, the firm's marginal revenue is $39

Hence Marginal revenue = $39

Currently, a monopolist’s profit-maximizing output is 500 units
per week and it sells its output at a price of $50 per unit. The
firm’s total costs are $7,000 per week. The firm is maximizing its
profit, and it earns $35 in extra revenue from the sale of the last
unit produced each week.
Instructions: Enter your answers as whole
numbers.
a. What are the firm's weekly economic profits?
b. What is the firm's marginal cost?
c. What is the firm's...

please explain how to solve:
A perfectly competitive firm sells 200 units of output at a
price of $5 each. Instructions: Enter your answers as a whole
number.
a. What is the firm's total revenue? $
b. What is the firm's marginal revenue? $
c. What is the firm's average revenue? $

A price-taking firm's variable cost function is
VC=3Q3,
where Q is its output per week. It has a sunk fixed cost
of $750 per week. Its marginal cost is
MC=9Q2.
a. What is the firm’s supply function when the $750 fixed cost is
sunk?
Instructions: Enter your
answer as a whole number.
Q =
(P/9)0.5 for P ≥ $.
b. What is the firm’s supply function when the fixed cost is
avoidable?
Instructions: Enter
your answer as a whole...

A price-taking firm's variable cost function is
VC=3Q3,
where Q is its output per week. It has a sunk fixed cost
of $750 per week. Its marginal cost is
MC=9Q2.
a. What is the firm’s supply function when the $750 fixed cost is
sunk?
Instructions: Enter your
answer as a whole number.
Q =
(P/9)0.5 for P ≥ $.
b. What is the firm’s supply function when the fixed cost is
avoidable?
Instructions: Enter
your answer as a whole...

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. Private firms seek to maximize (per unit profits , total
profits , total revenue, or total costs)
b. The amount by which Total Cost rises when one more unit is
produced is called the (total profit, total loss, marginal cost, or
total revenue)
c. For firms in perfectly competitive markets, the amount by
which the Total Revenue rises when one more unit is sold is called
the (total cost marginal revenue, marginal cost, or marginal
profit) , and this...

The demand equation and average cost function of a manufacturing
firm are given by 200 = p+4q and AC = 0.8q^2 + 4 + (25/q)
respectively, where q is the number of units produced. Using the
information provided above, please answer the following questions
(a) Determine the amount of profit when it is maximized. (b)
Determine the amount of average cost at which maximum profit
occurs. (c) Determine the marginal cost of the product when profit
is maximized? (d) Given...

1) A perfectly competitive firm's short-run supply curve is
its:
A. average variable cost curve above the marginal cost
curve.
B. marginal cost curve above the average fixed cost curve.
C. marginal cost curve above the average total cost curve.
D. marginal cost curve above the average variable cost
curve.
2)Economic Profit
A. (per unit) is price minus average variable cost.
B. is correctly described by all of these.
C. as a total amount, is (P - ATC) times quantity....

QUESTION 1
When a firm earns economic profit
1. market share has be capitalized.
2. accounting profits are zero.
3. total revenue has been maximized.
4. other firms enter the market.
QUESTION 2
If a firm’s product becomes a commodity
1. the firm’s strategy has apparently paid off.
2. the firm gains market power.
3. the firm has become a monopoly.
4. the firm looses market power.
QUESTION 3
Fixed costs
1. vary with output
2. vary with price
3....

9. Critical analysis Q17
Rod N. Reel owns a dealership that sells fishing boats in an
open, price-searcher market. To develop his pricing strategy, Rod
hired an economist to estimate his demand curve. The first two
columns of the chart provide the data for the expected weekly
quantity demanded for Rod's fishing boats at alternative prices.
Rod's marginal (and average) cost of supplying each boat is
constant at $7,000 per boat, no matter how many boats he sells per
week...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 5 minutes ago

asked 8 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 13 minutes ago

asked 17 minutes ago

asked 19 minutes ago

asked 32 minutes ago

asked 42 minutes ago

asked 47 minutes ago

asked 47 minutes ago