Curve MR is horizontal because: a. product price falls as output increases. b. the law of diminishing marginal utility is at work. c. the market demand for this product is perfectly elastic. d. the firm is a price taker.
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Curve MR is horizontal because:
a. product
b. the law of diminishing
c. the market
d. the firm is a price taker.
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- f the firm is producing at a quantity where marginal revenue exceeds marginal cost then, in order to increase profit, ___ Question 17 options: the firm's perceived demand will shift to the left. the firm should keep expanding production. any additional unit produced would decrease profit. the firm is now earning zero profit.2 firms Demand functions: QA = 120 – 2PA + PB Cost Structure: AC = MC = 20 Calculate PA, QA and Profits for firm A.(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?
- In most product markets: Prices fluctuate more than quantities. Prices fluctuate less than quantities. Prices fluctuate more than quantities in the short run. Prices fluctuate less than quantities in the long run. Both answers C and D.5. Study Questions and Problems #5 Suppose there is a decrease in the demand for high-definition televisions. What effect might this change have on the short-run average total cost curve for this product? _____ a) A decrease. When demand decreases, the short-run average total cost falls. b) An increase. When demand decreases, the short-run average total cost increases. c) No change. Demand determines the final price but not the costs for the product.1.a.Graphically explain why the firm’s short-run supply curve is simply the SMC curve. Hint: Explain why the output level satisfying the first-order condition is an equilibrium. 1.b. Mark the area of total revenue, total variable cost, fixed cost and short-run profit on the diagram.
- (MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle). A. What is the profit function of X-brand energy drink production?True or False: The law of diminishing marginal utility explains why short run production costs increase directly with a Firm's level of output.Must complete chart and graph MR, MC, ATC, AVC, and where Q indicates max profit. FOR CHART, FIND: Mid-point AVG Quantity Total Revenue (pxQ) Fixed costs calculations Variable costs (wages x workers) Total Costs (TC) Total Profit (TR-TC) AVC (VC/Q) ATC (TC/Q) Marginal Revenue (MR) (change in TR/ change in Q) Marginal Cost (MC) (change TC/ change in Q) Change in profit (MR-MC)
- KK ltd produces goods for sale. From trend analysis the management accountant established a demand function of the product to be P=40−1.5q, where P is the unit selling price and q is the quantity in thousands. The enterprise has been producing under the cost TC=q2+10q+50, where TC is the total cost in thousands of cedis.Required3. At what quantity does the firm break even? 4. Calculate the price elasticity of demand at the point and explain your answerThe firm's short-run supply curve shows the relationship between the price of a good and the: A. firms capacity output. B. quantity demanded of that good. C. willingness of consumers to purchase a good D. quantity supplied of that good.Answer "False" or "True" each of the following. Justify by relying on graphical analysis whenever possible. 1.- A company in perfect competition will maximize profits by equating average income to its marginal cost. 2.- For a company in perfect competition, the demand it faces is equal to the marginal product which is constant. plzz ansr first two