Determine the output level that will maximize economic profit.

Q: marginal profit is $30 and marginal revenue is $84  Calculate marginal cost

A: The given information is as follows:- Marginal profit= $30 Marginal revenue = $84 We need to find…

Q: The, competitive firm maximizes its profit by operating where:

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…

Q: Why is the marginal revenue of a perfectly competitive firm equal to the market price?

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

Q: Gymnast Clothing manufactures expensive hockey jerseys for sale to college bookstores in runs of up…

A: a.   Revenue function is 110x

Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

Q: Which statement about economic profit is FALSE? All firms are guaranteed to earn economic profit.…

A: Economic profit is the difference between total revenue earned and cost incurred in order to produce…

Q: If all the apple orchards in the United States are earning zero economic profits, the apple market…

A: Profit is defined as the difference between the total revenue and total costs. Total revenue is the…

Q: According to the graph below, the firm doesn't make a profit when the quantity exceeds what value?…

A: Profit is the difference between the total revenue and and total cost.

Q: When marginal revenue equals marginal cost, the firm may be minimizing its losses, rather than…

A: The equilibrium condition for a perfectly competitive firm is given by - MR = MC For this level of…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: The connection between marginal revenue and price depends on a business's competitive environment.…

A: Under perfect competition, there exists a large number of buyers and sellers. Each firm sells…

Q: MC ATC P = MR = AR

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: Economic profit is

A: To find : What is economic profit

Q: The graph shows the cost curves for a perfectly competitive firm. If the market price of the product…

A: A perfectly competitive market is where there are large number of buyers and sellers. The price of…

Q: A firm under perfect competition is

A: To find : What is firm under perfect competition.

Q: If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm…

A: In a market, an optimal or a Profit Maximizing quantity for a firm is when it is producing at a…

Q: Why economic profit is negat

A: Profit: It refers to the revenue earned by the companies. With more profit earned by the companies,…

Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…

A:

Q: In the short run, if a firm is having economic losses, but the profit is greater than the average…

A: The following problem has been solved as follows:

Q: Using the figure above, what is profit/loss for the firm?

A: In the case of a profit-maximizing firm, the optimal point of production is where the price is equal…

Q: At what output rate does the firm maximize profit or minimize loss?

A: After marginal revenue exceeds marginal cost,at that output rate firms maximize profit.

Q: Determine the output level that will create zero economic profit.

A: A firm always tries to maximize its profit by producing at an output level where the marginal…

Q: What does that mean in terms of long-run profit?

A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Q: Radhika has started providing tutorial service to 10th standard students in mathematics. She charges…

A: Given : Revenue per week per student = Rs 750 Total weekly cost = Rs 8000 Revenue for 10 students…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: What is the profit maximizing level of output for the firm? b.What is the economic profit earned or…

A: A market is the collection of buyers and sellers in which they exchange goods and services in terms…

Q: Can the given Marginal revenue be negative ?  True or false

A: According to the given question It is the amount of the marginal revenue which usually whatever will…

Q: Using curves, graphically, a firm will shutdown if what? What is an output at which the firm makes a…

A: Economic profit refers to the excess of total revenue over total cost.  To calculate the economic…

Q: Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the…

A: The change in total cost to change in output is known as marginal cost. The marginal cost is the…

Q: Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

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

Q: Match the words from the list below to complete the following statement A firm will maximise by…

A: Marginal cost refers to the total costs which arise when the the quantity produced increases by one…

Q: Does a competitive firm’s price equal its marginal cost in the short run?

A: A competitive firm is one that produces and sells output in the market with many sellers who offers…

Q: What relationship determines whether or not a firm should stay open in the short run? A) The price…

A: Total cost is the total expenditure incurred by the firm on the production of final goods and…

Q: The marginal revenue curve for a a competitive firm is

A: The marginal revenue curve for a competitive firm is simply a horizontal line at the market price…

Q: Match the words from the list below to complete the following statement A price taker firm will…

A: There are large number of firms in perfect competition selling identical goods with no barriers to…

Q: If a firm sells its output at a price greater than ATC, it will earn economic profit.   Is this…

A: A firm produces at a point where the marginal revenues are equal to the marginal costs.

Q: The marginal revenue curve for a perfectly competitive firm is

A: Marginal revenue is the additional revenue earned through the sale of additional output. A graphical…

Q: The profit maximizing output level for this firm is

A: Any firm maximizes profit where MR=MC