Question

a privately owned unregulated firm maximizes profit by choosing the quantity where? A. SRATC=AVC B. MR=SRMC...

a privately owned unregulated firm maximizes profit by choosing the quantity where?
A. SRATC=AVC
B. MR=SRMC
C. AFC=$0
D. TR= SRTC
E. TR=AR
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer — ........B MR =SRMC ( marginal revenue =short run marginal cost)

Explanation:- A unregulated firm attains equilibrium when its MR = SRMC , Marginal revenue refers to additional revenue from an additional unit of output whereas SRMC refers to short run marginal cost. Marginal cost is additional cost which incurs when an additional unit of output is produced.  

Incorrect options — SRATC can't eqate AVC ,because its difference AFC can't be zero. At TR=SRTC a firms earn a zero economic profit , TR =AR at only 1st level of output.

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
In a perfectly competitive firm the firm profit maximizes where P=MR=MC . In a monopoly firm...
In a perfectly competitive firm the firm profit maximizes where P=MR=MC . In a monopoly firm , the firm profit maximizes where P> MR = MC. Why does that allow a monopoly firm to make a larger economic profit in many cases? Without anti-trust laws, why would firms try to eliminate competing firms? (The attempt by ATT to buy out Direct TV for example.)
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
If a competitive firm maximizes short−run profits by producing some quantity of​ output, which of the...
If a competitive firm maximizes short−run profits by producing some quantity of​ output, which of the following must be TRUE at that level of​ output? A. MR≻MC. B. p≻MC. C. p≻AVC. D. All of the above.
A perfectly competitive firm has the following total cost and marginal cost functions:      TC =...
A perfectly competitive firm has the following total cost and marginal cost functions:      TC = 100 + 10q – q2 + (1/3)q3      MC = q2 – 2q +10      a)    For quantities from 0 to 10 determine: TC, TFC, TVC, and MC. b)    For quantities from 0 to 10 determine: ATC, AFC, and AVC. c)    Assume P (MR) equals 45. For quantities from 0 to 10 determine: TR and profit. d)    At what quantity is profit maximized?...
Shut down point is where AR=AVC AR is given as 500 Given TC= 5500+5Q2 means TFC=...
Shut down point is where AR=AVC AR is given as 500 Given TC= 5500+5Q2 means TFC= 5500 and TVC= 5Q2 (because TC=TFC+TVC and TFC is constant in the short run) This means AVC=TVC/Q= 5Q Shut down point will be whree 5Q=500 i.e. where Q=100 ii) profit = TR-TC= (AR*Q)-TC= 500Q- 5500-5Q2 for profit maximisation level of the first order derivative must be equated to zero and the second order derivative must be less than 0 First order derivative of profit...
A firm is asked to find the company’s Profit-Maximization point. Variable Costs remains at $1,280 per...
A firm is asked to find the company’s Profit-Maximization point. Variable Costs remains at $1,280 per employee per month. Fixed Costs remains at $1,000.00. Find and label the Profit Maximization point (MC=MR), and determine if the company earning a profit? Q P=D TR TC ATC AVC AFC MC MR 0 $19.99 1000 100 $18.99 2280 180 $17.99 3560 250 $16.99 4840 310 $15.99 6120 360 $14.99 7400
To maximize profit, a perfectly competitive firm should produce where: a. MR = MC. b. P...
To maximize profit, a perfectly competitive firm should produce where: a. MR = MC. b. P = MR. c. P = MC. d. P = ATC. e. Answers a and c are correct.
Quantity TC Price of TR ATC AVC MC MR MR-MC Profit change in good profit 0...
Quantity TC Price of TR ATC AVC MC MR MR-MC Profit change in good profit 0 10 5 0 1 15 5 5 15 5 5 5 2 18 5 10 9 4 3 5 3 20 5 15 6.67 3.33 2 5 4 21 5 20 5.25 2.75 1 5 5 23 5 25 4.6 2.6 2 5 6 26 5 30 4.33 2.67 3 5 7 30 5 35 4.29 2.86 4 5 8 35 5 40 4.38...
Find the quantity which maximizes profit if the total revenue and total cost (in dollars) are...
Find the quantity which maximizes profit if the total revenue and total cost (in dollars) are given by R(q) = 5q -0.004q^2 C(q) = 300 + q where 0 ≤ q ≤ 800 units. What production level gives the minimum profit?
. The table below illustrates the quantity of output (in units) and total cost (TC, in...
. The table below illustrates the quantity of output (in units) and total cost (TC, in MYR) for a perfectly competitive firm that can sell its output at MYR 9 per unit. Quantity TC TVC ATC AVC MC TR MR Profit /Loss 0 3 0 - - - 0 - -3 1 6 2 12 3 21 4 33 5 49 a. Calculate the total variable cost (TVC), average total cost (ATC), average variable cost (AVC), marginal cost (MC), total...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT