Assume the profit-maximizing price is $11 per gift box, and then answer the following question a. Profit-maximizing quantity | gift boxes b. Total revenue = $ c. Profit $ d. Profit per unit = $ per gift box
Q: The quantity of goods and services that a person, business, or company is willing to offer at a…
A: In general a firm incurs various costs in the daily business and these costs can be classified as…
Q: Identify markets in which you act as a buyer/demander and markets in which you act as a…
A: The buyer/demander is a person, who wants to fulfill his/her requirement by purchasing the goods and…
Q: A car rental agency lowers their rates by 10 percent. If the agency wants to recoup the income lost…
A: If the demand for cars is elastic then, the percentage change in quantity demanded is more than the…
Q: The demand equation of a good is P+Q=30 and the total cost function is TC=1/2Q+6Q+7 a) Find the…
A: Demand curve is a downward sloping curve. Demand curve shows the inverse relation between price and…
Q: Part I True or False Directions: Read the sentences carefully, Write TRUE if the statement is…
A: Since you have asked a multipart question, we will answer the first three parts for you. If you want…
Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…
A: Note:- Der Learner you have posted a question with multiple sub parts, as per our policy we have…
Q: Output (Units) PRICE Total Revenue 1 50 2 45 3 40 4 35…
A:
Q: Use the demand curve below to answer questions 1 through 6. 12- 10- 81 2- 50 100 150 200 250…
A: Total revenue is miximized when the TR is higherNow,TR=Price*QuantityAt point A,TR=100*5=500At point…
Q: If club members charge $9 admission to a classic car show, 1,000 people will attend, and for each $1…
A: The charge to a classic show = $9 Number of people attend the show at the price $9 = 1000 If the…
Q: identify which of production level that marginal revenue decreases start to occur (with supposition…
A: A) Marginal revenue tend to decrease from the output level of 7 as it is minimum level and after…
Q: The ongoing war between Ukraine and Russia has disrupted the wheat supply in the world market. If…
A: Price elasticity of demand is used to measure the degree of responsiveness of changes in quantity…
Q: Confirmation of my true or false questions, thanks for your help!1. A theory is an explanation of…
A: 1) A theory is an explanation of the casual mechanism behind observed phenomena. Thus, the statement…
Q: To increase a company's profit, a manager suggests that the company needs to increase the value of…
A: Answer: Profit per unit is the difference between the price of the product and the average cost of…
Q: Explain why the following might be true: a drought around the world raises the total revenue the…
A: Drought: It means the period of dry weather that is injurious for crops if stays for a long time.
Q: Why do the prices offered to business customers differ from those offered to "individuals"? a.…
A: In a market, firms have an opportunity to use price discrimination between business customers and…
Q: The demand for a product is Qd=A-BP, where P is its price and A and B are positive numbers…
A: # We know that the elasticity of demand is given as:- (Ed) = (dQd/dP) x (P/Qd) = - 5 Substituting…
Q: Data for movie tickets Quantity demanded (tickets per day) Price ($ per ticket) 7 300 8 200 9. 100
A: Demand curve shows an inverse relationship between price and quantity demanded. As price falls…
Q: Marginal revenue is equal to: A. the change in total revenue from selling one more unit of a good.…
A: Marginal utility = Current total utility - Previous total utility.
Q: ________ is the cost of using resources to produce another unit of a good. a ) Price. b )…
A: Price refers to the cost of a good at which consumers buy goods and services. This is the value of…
Q: Commodities a) Rely heavily on advertising to see their sales grow. b) Have prices that are…
A: Commodities include raw materials and equipments used by producers for producing other goods and…
Q: Income elasticity of demand measures the responsiveness of demand to changes in income. Explain what…
A: Income elasticity of demand measures the responsiveness of demand for a good when the income of…
Q: You are the curator of a museum. The museum is running short of funds, so you decide to increase…
A: The decision of the curator of a museum will be based on the price elasticity of demand. The price…
Q: can a manager earn profit by exploiting market inefficiencies? What are some common tactics
A: Its often tendancy for managers to exploit the market inefficiencies and earn profit.
Q: In which three ways does increased competition benefit buyers? lower priced goods and services…
A: Basics:- When competition is increased, it favors the buyers as It reduces the prices of goods…
Q: An upward sloping supply curve can be explained by the fact that _______________________. I…
A: A supply curve is upward sloping as the price of the good and the quantity supplied of good has a…
Q: A firm produces a steel bar. When the price of the steel bar is $ 30,000, the quantity demanded is 8…
A: Given: Price of the steel bar (P1 )=$ 30,000 Quantity demanded (Q1) =8 metric tons A 100% change in…
Q: In the figure above, when the price increases from point A to point B, the quantity effect on Total…
A: The quantity effect on total revenue will be = 800 - 1200 * 30 = -12000
Q: Critically evaluate and explain each statement: An excess of price over marginal cost is the…
A: Marginal-cost pricing, in economics, the practice of setting the worth of a product to equal the…
Q: Explain the following question by logical answers (a) Explain why the cross elasticity of demand for…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Use the following data to analyze the condition when the product price is set at $56. A. How much…
A: The profit-maximizing output is achieved in purely competetive market is when:P=MCNow, P=$56We will…
Q: The demand function for a good is p = 42 – 0.01q. Round your numeric answers to one decimal place.…
A: As given demand function is p = 42 - 0.01q As we know total revenue = price*quantity
Q: What is wrong with the statement: Demand refers to the willingness of buyers to purchase different…
A: Demand for any commodities depends on two factors : 1) Individual's willingness to purchase a good.…
Q: A grocery store sells a bag of potatoes at a fixed price of $2.30. Which of the following is a term…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: What is the most likely effect of the development of DVDs, rental movies, and online movie streaming…
A: The demand is inelastic when there are no close substitutes available and elastic when there are…
Q: Which of the following measures is conceptually the same as price? A) Marginal revenue. B)…
A: Marginal Revenue is the additional revenue earned by the selling one more unit of output. Average…
Q: Give 5 classifications of demand and give one example for each. (at most 2 sentences)
A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…
Q: If the price is given as 20 per unit and the given quantity is $150 billion Find the Total revenue
A:
Q: At a price of $4 per ticket, a musical theater group can fill every seat in the theater, which has a…
A:
Q: What are the factors that will affect the total revenue?justify your answer
A: Total revenue is the total amount of money a company brings in from selling its goods and services.…
Q: Economic profit is the difference between total revenue and the A) costs of resources bought in…
A: Economics is the study of the scarcity of resources and unlimited wants. The scarcity of resources…
Q: Real estate is said to have inelastic short-term supply and elastic long-term supply. Explain why…
A: Elasticity is a term used in economics to describe the change in the aggregate quantity demanded of…
Q: true or flase question, would like to check my answers thanks! 1. Models are simplificatins that are…
A: The statement that models are a simplification of the real world to see the working of a system is…
Q: Which of the following statements about a sales-oriented company is FALSE?
A: Sales oriented companies are the companies that basically focus on the development of a sales force…
Q: If firm sales (revenue) is increasing but costs are increasing faster (MR<MC) then: Answer: "Y" for…
A: Hi, thanks for the question. Since there are multiple questions posted, we will answer first three.…
Q: Explain how the price leader determines a profit-maximizing price.
A: In a market, price leadership refers to the situation when a firm in the market gets some…
Q: Suppose the price elasticity of supply for a product is zero. This means that: a. There is a…
A: Price elasticity of supply is given as Es= Percentage change in quantity supplied/Percentage change…
Q: Solve step by step please If ? = −0.5? + 450 is a demand equation, where ? is the price of the good…
A: Demand Equation P = -0.5Q + 450 To find the Marginal revenue function, find the TR Total revenue =…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for 72 each. The fixed costs of production are 109. The total variable costs are 54 for one unit, 84 for two units, 114 for three units, 134 for four units, and 270 for five units. 111 the fauna of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves. What is the profit maximizing quantity?Lisa lawn Company (LLC) is a lawn mowing business in a perfectly competitive market for lawn mowing services. The following table sets out Lisa's cost Quantity(lawns per hour) Total cost (dollars per lawn 0 $30 1 40 2 55 3 75 4 100 5 130 6 175 when Lisa shuts down, what will be her economic loss?A firm in long run perfect competition is charging $5.00 for its product. Its long run average Total cost is ATC = 50 - 6Q + 0.2Q2 (Fifty minus six Q plus 0.2 Q squared), how much output should the firm produce? 25 15 10 5 Clear my choice
- Suppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]The table below shows the cost information for a firm in a perfectly competitive industry. What would be the shut down price for this firm? Q FC VC TC MC AFC AVC ATC 0 275 0 275 1 275 8.1 283.1 8.1 275.00 8.10 283.10 2 275 11.8 286.8 3.7 137.50 5.90 143.40 3 275 16.7 291.7 4.9 91.67 5.57 97.23 4 275 23.4 298.4 6.7 68.75 5.85 74.60 5 275 32.5 307.5 9.1 55.00 6.50 61.50 6 275 44.6 319.6 12.1 45.83 7.43 53.27 7 275 60.3 335.3 15.7 39.29 8.61 47.90 8 275 80.2 355.2 19.9 34.38 10.03 44.40 9 275 104.9 379.9 24.7 30.56 11.66 42.21 10 275 135 410 30.1 27.50 13.50 41.00 11 275 171.1 446.1 36.1 25.00 15.55 40.55 12 275 213.8 488.8 42.7 22.92 17.82 40.73 13 275 263.7 538.7 49.9 21.15 20.28 41.44 14 275 321.4 596.4 57.7 19.64 22.96 42.60 15 275 387.5 662.5 66.1 18.33 25.83 44.17 16 275 462.6 737.6 75.1 17.19 28.91 46.10 17 275 547.3 822.3 84.7 16.18 32.19 48.37 18 275 642.2 917.2 94.9 15.28 35.68 50.96 19 275 747.9 1022.9 105.7 14.47 39.36 53.84…Please no written by hand A profitable firm becomes unprofitable following the ban of cheap plastics used in its production. Show this on the cost and revenue graph, the profit graph, and the production graph. Be specific in your labels, indicating carefully the shifts in the curves, if any.( Hand graph please)
- Price (dollars per packet of chips) Quantity demanded (millions of packets of chips per year) Quantity supplied (millions of packets of chips per year) 4 135 26 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 C: Harry-Chips is a firm in the potato chips industry. Harry-Chips produces 10 million packets of chips per year at an average total cost (ATC) of $4. What is Harry-Chips short-run profit or loss per year? Explain your answer in detail. D: Given your answer in part d, would new firms enter or existing firms exit the market? What would be the long-run impact on Harry-Chips’ profit or loss? Explain in detail.The following table shows the output and total cost for a firm in a purely competitive industry Output TC AC MC 0 40 1 95 2 115 3 130 4 150 5 175 6 210 7 260 8 330 Complete the tableAnswer the following questions based on the data provided below for the competitive firm. Assume that fixed cost is equal to $100. All figures are in dollars. q AVC ATC MC 0 - - - 1 17 117 17 2 16 66 15 3 15 48.33 13 4 14.25 39.25 12 5 14 34 13 6 14 30.67 14 7 15.71 30 26 8 17.50 30 30 9 19.44 30.55 35 10 21.60 31.60 41 11…
- Suppose you are thinking about starting a lawn service in your area. The lawn service market can be considered perfectly competitive. You own a $200 lawnmower. You have a fixed cost of $90 (maintenance costs on the mower, etc.). Your variable costs are as follows: # of Lawns Mowed Total Variable Costs Fixed Cost 1 $5 90 2 $15 90 3 $30 90 4 $50 90 5 $75 90 6 $105 90 7 $140 90 8 $180 90 9 $225 90 10 $275 90 a) Calculate Total Costs, Average Total Costs, Average Total Costs, Average Variable Costs, and Marginal Costs. b) Suppose that the going rate for lawns is $35 per lawn. How many lawns would you mow?Under the assumption of perfect competition in short run firms onlye earnabnormal profit. True/False. Explain your answer theoretically and graphicallyPART C: MARKET ANALYSIS Pacesetter is a manufacturer of three-ring binders operating in a perfectly competitive industry. The Table below shows the firm's cost and revenue schedule Quantity (cases) Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost Total Revenue Profit (or Loss) 0 $0 $76 1 30 106 $40 2 50 3 134 4 140 5 160 6 114 7 150 8 190 9 316 PART C: MARKET ANALYSIS (i) Complete the Table above by filling in the blank cells. (ii) Based on the above Table, Pacesetter’s profit maximizing or loss minimizing level of output is __________; and the (profit is _________) or (loss is __________) (iii) Should the firm continue to…