Do firms really equate their marginal cost with marginal revenue?

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: Suppose it costs c(x) = x³ – 6x? + 15x dollars to produce x radiators when 8 to 10 radiators are…

A: Marginal revenue is the additional revenue earned from the sale of an extra unit of output. Marginal…

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: What is the relationship between revenue cost and profit?

A:

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…

Q: Can the marginal revenue be negative??? True/False

A: Marginal revenue refers to the amount of additional revenue thay a producer gets when he produces…

Q: Suppose that Joe is the owner-operator of Joe's Haircuts. Last year he earned $100,000 in total…

A: The difference between the accounting profits and economic profits lies in the understanding of the…

Q: If marginal profit is negative what information can you infer about marginal cost and marginal…

A: Marginal profit is given as :- Marginal profit = Marginal revenue - Marginal cost It's given that…

Q: Use the table to compute the marginal revenue and marginal cost

A: Marginal revenue is given as the additional revenue generated by producing one more unit of a good.…

Q: . What is the marginal revenue obtained from selling the 4th unit?

A: Marginal revenue is the change in the total revenue that results from the sale of an additional unit…

Q: If marginal cost is $37 and marginal profit is $8 Calculate marginal revenue

A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: Calculate marginal revenue if Marginal cost is $300 and marginal profit is also $300

A: Given : Marginal Cost = $300 Marginal Profit = $300

Q: If marginal profit is $32 and marginal revenue is $50 Find Marginal cost

A: The data presented In the question above is:- Marginal profit = $32  Marginal revenue = $50…

Q: MC ATC P = MR = AR

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

Q: can you  answer part iv and v?

A: For question number 4 and 5, Total revenue TR = 40q – 12q2 AC(q) = 1/30 q2 – 12.85 q + 20 + 400/q…

Q: b. Under which condition marginal revenue can be negative? Explain with the help of an example. only…

A: Marginal revenue is less than the average revenue and may even be negative when a corporation faces…

Q: Under what conditions will a firm shut down temporarily? Explain.

A: One of the classifications of a firm’s costs is fixed cost (FC) and variable cost(VC). Fixed costs…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: Explain why optimal profits should occur when marginal cost equals marginal revenue.

A: MC or marginal cost is the addition to the total cost (TC) when an extra unit of output is produced.…

Q: The shape of the firms marginal revenue curve depends ultimately on whether the firm is

A: Marginal Revenue refers to the additional revenue generated by selling one additional unit of…

Q: what are the maximum profits this firm can earn?

A: A competitive market is a typical market that answers the demands for goods and services. A…

Q: If total revenue increases at a constant rate, what does thiscondition imply about marginal revenue?

A: Marginal Revenue means the rate at which Total Revenue is either increased or decreased on sale of…

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: If a firm generates $200,000 in revenue, earns $105,000 in economic profit, and its expli- costs are…

A: In economics, an implicit cost, also called an imputed cost, implied cost, or notional cost, is the…

Q: ransaction costs and why are they important to why firms exist? (hint: Coase theory)

A: Coase theorem states that in the presence of well-defined property rights, the parties involved in a…

Q: At his profit maximizing output, what is the total profit earned by Tim?

A: Answer: A monopolistically competitive firm maximizes its profit where the marginal revenue (MR) is…

Q: A train track runs through a rancher's land. Each time a train runs on the track, it causes one of…

A: since you have asked a multipart question and according to our policy we can only solve the first 3…

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: If marginal cost is $13 and marginal revenue is $40 Calculate marginal profit

A: The information being given is:- Marginal cost = $13 Marginal revenue = $40 We have to calculate…

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: If marginal profit is $33 and marginal revenue is $80 What's the value of Marginal cost

A: The data presented in the question is:- Marginal profit of the firm = $33 Marginal revenue = $80…

Q: What is the firms profit or loss?

A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…

Q: Calculate the value of marginal cost when marginal revenue is $87 and the Marginal profit is $20

A: The difference between both marginal revenue and marginal cost is said to be as the marginal profit.…

Q: How do you calculate marginal cost and marginal revenue?

A: Marginal revenue:   Marginal revenue refers to the additional revenue that made by selling of one…

Q: Calculate Marginal profit given that marginal revenue is two times that of marginal cost

A: The given information is as follows:- Marginal revenue is two times that of total cost i.e MR = 2 MC…

Q: Explain why earning zero economic profit is not as bad as itsounds.

A: In the field of economics, it is assumed that the sole objective of any firm is profit-maximization.…

Q: How does a change in the response rate affect profit?

A: A response rate refers to a rate that shows the number of people or participants who have responded…

Q: Comment why is this point significant analytically.

A: Marginal cost is defined as the change in total cost that results from the production of an…

Q: Can the firm's marginal revenue really be negative? Why?

A: Marginal revenue is the additional revenue that occurs from the sale of one additional unit of the…

Q: Briefly discuss average costs, including how they are calculated, how they are typically appear on a…

A: The various Average costs are discussed below including how they are calculated :

Q: If the marginal revenue is 45 and the marginal cost is 45 also. What can you say about the firm's…

A: Profit maximization is the process through which corporations and organizations devise methods to…