Assuming that the competitive firm's output is doubled then what will happen to the firm's total revenue? (a) More than doubles (b) Less than doubles (c) Doubles (d) Cannot be determined because the price of the good may rise or fall.

Assuming that the competitive firm's output is doubled then what will happen to the firm's total revenue? (a) More than doubles (b) Less than doubles (c) Doubles (d) Cannot be determined because the price of the good may rise or fall.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 6PA: A firm in a competitive market receives 500 in total revenue and has marginal revenue of 10. What is...

See similar textbooks

Related questions

Q: V2 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: Assuming the firm is producing at the profit-maximizing quantity, the firm is earning a * Market…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The…

Q: 1. A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost…

A: Fixed costs are the costs that firms would incur regardless of the output. These do not change with…

Q: The global pandemic 2020 has promoted a race to capture the market for introducing effective vaccine…

A: Profits are maximum at such quantity where marginal revenue is equal to marginal cost

Q: A competitive industry has production processes that generate pollution. okay with studies carried…

A: Given information P=1500 , Q=250 P=1800, Q=200 MC=1300 MEC=500

Q: The marginal-revenue and marginal-cost curves intersect at a quantity of copies. On the previous…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: After mining 9,273 tons of coal, Blue Sky Mining’s managers note that the marginal cost of mining…

A: The total cost of producing one extra ton of coal is $75 (40+35). Total revenue received from…

Q: a. Profit is maximized at a price of $ b. The profit-maximizing level of output is__ c. At the…

A: A monopoly firm maximizes its profit where marginal revenue is equal to the marginal cost. The firm…

Q: High total revenue does not necessarily mean maximum profit. Explain this stateme

A: Below are the formula for the TR and profit: TR = Price x Quantity Profit = TR - Total Cost

Q: 3. The demand function for Product X is Q = 100 – 2P. The company decided to set the price per…

A: As given Q=100-2P which gives P=100-Q2P=50-0.5Q Hence, Total Revenue…

Q: Which one of the following is the Primary Point of Customer Contact? Select one: O a. sales O b.…

A: So as to generate sales and make profit through the sales, it is important to satisfy the customer…

Q: Question 35 Middle-men in a marketing channel participate in order to obtain a profit on the re-sale…

A: Middlemen in a marketing channel participate in order to obtain a profit on the re-sale of products.…

Q: "Healthy Morning" is a firm that produces breakfast cereal and suppose breakfast cereal is a…

A: Price or MR = 10 $Total revenue = 10000 $ TR = Qty * Price 10000 = Qty * 10 Qty = 1000 $ Average…

Q: In pricing a product cost works as a floor and customer perception of the value of a product works…

A: Pricing is the mechanism whereby a firm decides the value where it can distribute its goods and…

Q: 1. Refer to the figure below. The equation for p = 105-0.005D. Calculate a) fixed cost b) optimum…

A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well…

Q: 6. The marginal cost for Product Y is MC = 10 + 2Q. The market price for Product Y is $50. How many…

A: Given: MC=10+2Q Price= $50 Since price is constant at $50 and there is no other factor influencing…

Q: The firm's profit maximizing output level is ____ units. b. At the profit-maximizing level of…

A: Profit is maximized when P = MC = $10, with Q = 20.

Q: 1. A _____ strategy is often used where there's a strong pressure to reduce costs and limited…

A: The correct answer is given in the second step.

Q: Choose the letter/s of the correct answer/s. How are you going to maximize a profit if the price is…

A: Profit is the excess of revenue(TR) over costs(TC).

Q: is the difference between total revenue derived from sale of a firms output and opportunity costs…

A: Profit is the difference between the total revenue and the total cost over a specified time period…

Q: A) What quantity will the firm decide to produce if the price is $14? B) How much profit will the…

A: Answer a) In Perfect competition, producer maximizes their profit at where the price is equal to the…

Q: A company that works in a perfectly competitive market has a total cost function: TC = Q3 - 52.5Q2…

A: We will answer the first three subparts only. Please resubmit the question with any other parts…

Q: a. Optimal output b. Optimal price c. Total revenue

A: Given: In short-run: MC=ATC Note: Due to multiple subparts being posted, the first three subparts…

Q: Q1. A company produces circuit boards used to update old-fashioned computer equipment. The taxes…

A: Since you have asked a multi-part question and according to the policy, we can only solve the first…

Q: XYZ company can manufacture their own products and sells them. They are able to control the demand…

A: Profit maximizing quantity of output is where marginal revenue equals marginal cost.

Q: 3. The demand function for a particular brand of LCD TV is given by p = 258030x where p is the price…

A: Given, the demand function is: Here, p is the price per unit in the dollar and x is the number of…

Q: What products will your product compete against? Are there any similar products out there? Name and…

A: Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: a. If the market price is $15, what is the revenue at output equal to 4 units? b. What is the total…

A: In a perfectly competitive market, the firms are price taker. In a competitive market, no single…

Q: What is the marketing and economics for the cotton production in arizona

A: A market is a place where the buyers and sellers interacts with each other and the exchange of goods…

Q: (A) The Marginal cost of a firm is $230 and the marginal revenue is $255 What would be the value of…

A: The data given in question:- Marginal cost of firm = $230 Marginal revenue of firm = $255 Marginal…

Q: Here is my question!

A: The profits maximizing output is attained at MR=MC

Q: A company produces a special new type of TV. The company has fixed costs of $454,000, and it costs…

Q: Second Version: A firm is manufacturing widgets. There are no fixed costs, and the variable cost c…

A: Profit-maximizing: The amount of output at which MC equals MR is known as maximum profit.The company…

Q: XYZ company can manufacture their own products and sells them. They are able to control the demand…

A: To get the profit maximizing units of output we differentiate the profit function with respect to D…

Q: (1) The revenue for a product is R(x) = -0.004x? + 21x 6200 and the cost is C(x) = 0.02x + 38, for x…

Q: A company produces and sells hair dryers in a market where price (p) and demand (D) are related as…

A: Given The demand curve facing the company: P=35+3000D-4800D2 ........... (1) Fixed cost FC = $800…

Q: 7. The demand function for a good is given by the equation P= 50 – 2Q, while total cost is given by…

A: Given, P = 50 - 2Q TC = 160 + 2Q

Q: A competitive industry has production processes that generate pollution. okay with studies carried…

A: In economics, the marginal cost is the change in the total cost that arises when the quantity…

Q: (1) The revenue for a product is R(x) = -0.004x? + 21x – 6200 and the cost is C(x) = 0.02x + 38, for…

A: Given : Revenue function : R(x) = -0.004x2+21x-6200 Cost Function : C(x) = 0.02x+38

Q: A company produces a special new type of TV. The company has fixed costs of $468,000, and it costs…

A: Given, Total fixed cost for producing TV (TFC) = $468,000 Variable cost per TV = $1400 Suppose the…

Q: 1. A certain computer company produces three kinds of computers, labelled A, B and C. This computer…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Use economic theory to detail and examine the reason why electricity network and gas pipeline…

Q: a. What price will prevail in this market? 10 b. What quantity is produced? 10 smoothies c. How much…

A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well…

Q: 5) The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of…

A: The optimum output for an individual company working in a pure competitive market is the one where…

Q: Economics The demand for product Q is given by Q = 100 -.25P and the total cost of Q by: 1…

A: The objective of any firm is to maximize the profit. Profit is the difference between total revenue…

Q: Price MC 160 140 ATC 123.33 Demand 90 56.67 MR 100 133.33 154.92 Quantity Refer to Figure 16-10. The…

A: In a monopolistic competitive firm there are large number of firms selling similar but not identical…

Question

Assuming that the competitive firm's output is doubled then what will happen to the
firm's total revenue?
(a) More than doubles
(b) Less than doubles
(c) Doubles
(d) Cannot be determined because the price of the good may rise or fall.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A company produces a special new type of TV. The company has fixed costs of $451,000, and it costs $1000 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand. If the company sets the price at $3800, how much profit can it earn? It can expect to earn/lose $enter your response here. (Round answer to nearest dollar.)
a) identify which of production level that marginal revenue decreases start to occur (with supposition price factor does not change) b) identify which of production level and price that can provide maximum profit.
A. What is the profit-maximizing price and quantity? B. What is the revenue-maximizing price and quantity? C. When total cost exceeds total revenue, profits are?
Price1 Price2 Quantity 1 Quantity2 demand for a.cashews 7.50dollar per pound 6.00 dollar per pound 800 pounds per month 1,000 pounds per month 65 per year b.portable hard drive (1 terabyte) 80 dollar 120 dollar 75 per year 65 per year c.12-gauge copper wire 0.60 per lineal foot 0.45 per lineal foot 2,5000 lineal feet per week 5,000 lineal feet per week d.Toothpaste 2.00 dollar per tube 2.40 dollar per tube 10 tubes per moth 9 tubes per month Using the midpoint formula, calculate elasticity for each of the following changes in demand.
Use economic theory to detail and examine the reason why electricity network and gas pipeline businesses face a revenue deficiency problem if price is equated to long run marginal cost. Note: use economic figures wherever applicable and 5% Plagriasm allowed
(a) At what output is the firm’s profit maximised and How much profit is made at this output? (b) Draw the total profit TΠ curve over the range of output where positive profit is made. (d) How much is total fixed cost, At what output is the price elasticity of demand equal to -1 and At what outputs does the firm break even?
Use the following table for questions 7-10 Carving knives Home users Professional Chefs No-name brand $40 $70 High-end professional series $60 $130 Given that the firm wants to sell both the versions, how should it price its products to have the users self-sort themselves profitably?
Question 1 A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
if marginal revenue equals $2 and marginal cost equals $3 at a certain output then.... a. the output is wealth maxinmizing b. that output it not profitable c. that output does maximize wealth d.that output should be expanded
After mining 9,273 tons of coal, Blue Sky Mining’s managers note that the marginal cost of mining the next ton of coal would be $40 per ton. They also calculate that the user cost of mining that next ton of coal would be $35. If the market price of coal is $72, should Blue Sky mine an additional ton of coal? a. Yes. b. No. c. More information is needed.
One more question is, A profit maximizing firm faces market price of p2. What are their profits?
Juice producers are price takers since they compete in a highly competitive market. The going rate for juice at the market is $20.00.The prices are provided by: Cost overall = 0.2Q2+8Q+40 Cost Margin = 0.4Q+10 a) Determine how many juices the business should sell to increase earnings. CMg=P b) Determine the highest daily benefits. Total revenue = P*Q Costs in total = 0.2Q2+8Q+40 Total income + maximum perks Total price