Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a firm's average total cost is $11 and its total variable cost is $600. If the price of the product is $3 per unit and the firm follows its optimal strategy, the firm will earn an economic profit equal to

Q: If a perfectly competitive firm decreases production from 11 units to 10 units and the market price…

A: Revenue refers to the amount of money earned by the firms by selling the goods and services in the…

Q: Q: determine whether the following statements are true or false: a) Average fixed costs increase…

A: Fixed cost(FC) do not change in the short run regardless of the volume produced or sold. Market…

Q: In economics, a firm earns a normal profit when its total revenue equals its total economic costs.…

A: In economics, a firm enjoys normal profit when the difference between the total revenue and the…

Q: Suppose Antonio runs a small business that manufactures frying pans. Assume that the market for…

A: Total Cost is defined as economic measure which sums up all the expenses that are paid to produce a…

Q: A firm in a competitive market has the following cost structure as in the Figure 2 below. If the…

A: Fixed Cost = $3 Market Price = $10 Profit maximizing quantities can be found where, Total Revenue =…

Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…

A: Firms operating in a market incur fixed costs and variable costs. Fixed costs will not change if…

Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…

A: The profit-maximizing level of output is obtained at the point where the marginal cost equals the…

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A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Q: given by R(q)=−5q^2+800q , where R(q)is in dollars and qq is units sold. Find a numeric value for…

A: Marginal revenue is the additional revenue earned with an  extra unit sold.

Q: A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 90…

A: Profit can be maximized at the point where Price = Marginal cost that is P=MC and marginal revenue…

Q: If a firm is making negative economic profit in a perfectly competitive output market (as described…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: ) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total  loss.…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Define Q to be the level of output produced and sold, and assume that the firm’s total cost function…

A: The profit of any firm is maximized at a point where marginal revenue is equal to marginal cost. The…

Q: Which of the following statements is correct? * In order to maximize profits in the short run, a…

A: Profits are the money that is earned by the businessman in return of selling its goods and services…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: TC=712+q2Now,AC=TCqAC=712q+q

Q: A firm has the following revenue and cost functions. TR= 60 - Q - Q2 TC = 1/2 Q2 + 30 Q + 30…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: You are the manager of a firm that sells its product in a competitive market at a price of $60. Your…

A: Profit is the income earned by the company after deducting all the expenses from the total revenue.…

Q: The wood-pallet market contains many identical firms, each with the short-run total cost function…

A: The perfectly competitive market structure is characterized by the large number of firms and buyers.…

Q: The marginal cost of a competitive firm is MC(Q)=4Q+7. The market price is 80. Suppose the current…

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Q: is currently earning zero economic profit. How many firms are in this industry, and what is the…

A: Given : Short run cost function : Marginal Cost function : Demand function of industry : Average…

Q: The short-run marginal and average cost curves for a firm are displayed below. When q= 2 and q= 6,…

A:

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: A perfectly competitive firm has the following total cost function:…

A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…

Q: Consider a firm in a perfectly competitive market. The firm’s marginal cost, average cost and…

A: Suppose that the current market price is p=10. In order to maximize its profit, the firm will…

Q: A perfectly competitive firm has the following total cost function:    Total output Total Cost 0…

A: The perfectly competitive is the type of market structure where there are large number of buyers and…

Q: Refer to Figure 9.1. The profit-maximizing price of wheat is ________ per bushel. A) $7 B) $9 C) $11…

A: Profit is maximized when P = MC = $15. Correct option is (D).

Q: "A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its…

A: Profit maximization:  Profit maximizing firms produces and sells the goods at the point where the…

Q: Suppose Tim runs a small business that manufactures frying pans. Assume that the market for frying…

A: Perfect competition is a market structure where there are many buyers and sellers selling…

Q: You are the manager of a firm that produces its output in a competitive market at Q = 500 – 25P.…

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Q: Suppose you are operating a firm with a given fixed cost and product market price. If the market for…

A: Perfect competition is a form of market where there are large number of buyers and sellers selling…

Q: Assume a firm's marginal costs are increasing at its current level of output. If a firm's marginal…

A: Marginal costs are the costs that measure the change in the total cost of production when the…

Q: Suppose Caroline runs a small business that manufactures shirts. Assume that the market for shirts…

A: In a competitive market firm is a price taker , and equilibrium point is acheived where MR = P = MC…

Q: firm's profit function is z(q) = R(q) – C(q) = 140q - (410 + 20q + 10q). What is the positive output…

A: Profit is the difference between total revenue and total cost. Total cost is the sum of Fixed and…

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Q: The cost function for Acme Laundry is:    TC(q)=10+10q+q^2  so its marginal cost function is:…

A: Introduction: In economics, the marginal cost of production is the difference in total production…

Q: A firm produces a product in a competitive industry and has a total cost function C = 80 + 4q + 2q2…

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A: The competitive firm determines the profit-maximizing price and output at the level where the…

Q: A perfectly competitive firm has total revenue and total cost curves given by: TR = 800Q TC =…

A: In perfectly competitive market, price is constant. So it is equal to marginal revenue revenue.…

Q: Determine a firm’s profit-maximizing decision in the short run.

A: Profit-maximization is a rational producer's objective under which the producing agent attempts to…

Q: Assume that the marginal revenue equals rising marginal cost at 100 units of output. At this output…

A: The income gained by increasing product sales by one unit is referred to as marginal revenue in…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: TC=404+19q+q2 MC=19+2q Q=316-P or, P= 316-Q P = $86

Q: Suppose a firm can sell one unit of product for $50, two units for $45 each, three units for $40…

A: Total revenue is revenue earned by seller by selling the quantity at particular price , so TR=P x Q…

Q: The profit maximizing output level for this firm is

A: Any firm maximizes profit where MR=MC

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A: Supply function shows positive relationship between price and quantity supplied.

Q: When the perfectly competitive firm produces the quantity of output at which marginal revenue equals…

A: A perfectly competitive firm maximizes profit by producing at the level where marginal revenue…