Demand: P = 120 – Q Marginal Revenue: MR = Total Cost: TC = Q? Marginal Cost: MC = 2Q - 120 – 20 a. Find profit maximizing price and quantity. b. What is the amount of profit when profit is being maximized? c. What is the amount of deadweight loss (as compared to perfect competition)?
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- True or false b. Charging a price greater than marginal cost leads to maximum efficiency c. In reality, few markets are perfectly competitive, and some loss of economic efficiency occurs in most markets d. Most markets are perfectly competitive and economists have found that there is no loss of economic efficiency in the U.S. economy.3. When this firm is producing at the profit-maximizing price and quantity, its total revenue is $_______. 4. The total revenue when a firm is profit maximizing is $________. 5. The total cost when a firm is profit maximizing is $_________. 6. The profit when a firm is profit maximizing is $________.How much should the firm produce to maximize its profit? What is the firms AR? What is the firms MR? How much is the firms total revenue based on the profit maximization rule? How much is the firms total cost? How much is the firms total profit?
- Fill in the blanks: 1. If the market price equals a firm’s break-even price, the firm earns its ________ profit. 2. For a monopoly, the firm’s demand curve is downward sloping, therefore to maximize its profit, the firm must produce where its marginal cost equals ________. 3. The competitive market’s demand curve is __________. sloping while that of the competitive firm is __________. 4. your firm has a price of $5, an average cost of $7, and an average variable cost of $4. in the short run, you should _________.Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly firm?a. If only two firms exists in the market and they act competitively, find the equilibrium price and quantity, and calculate producer and consumer surplus. If you know firms earn zero profit, what must their fixed cost be? b. Calculate the elasticities of market supply and market demand at the equilibrium point. Which one is more elastic?
- Flag 1. A company faces TC = y2 + 12 and market demand y = 24 – p. a) What is the firm’s profit?, b) At the profit-maximizing price, c) what is the firm’s marginal revenue? please explain each step:)Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240QUESTION 6 The profit-maximizing point for suppliers in a competitive market is where MR = MC. True False
- *1 A small village has only one Italian restaurant. The daily demand for dinners in this restaurant is P=120-2Q, where P is the price in £ and Q is the number of dinners. It has a fixed cost of £300 and a marginal cost of £10 for the first 15 dinners. If it wants to produce more than 15 dinners, it must pay overtime wages to its workers, with the marginal cost rising to £20. What is the maximum amount of profit the restaurant can earn? Illustrate your answer on a diagram.Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be: $240 $160 $80 $60For the Water Utility, it costs $50,000 per month to lease the land and equipment for the water treatment facility and pumping station and maintain the water supply system. It costs $10Q to deliver water to households (Q is thousands of gallons). The town’s monthly demand for water is QD = 5000 – 100P, where P is price. Calculate the quantity of water, the price, total revenue, total cost, total profit, marginal revenue, marginal cost, the markup, the profit margin, and marginal profit at unregulated price and quantity of water. What price per gallon will they charge?