How does a change in the response rate affect profit?

Q: What is quality? Could you explain the relationship between cost and quality

A: In an economy, there are various sellers. Each seller offers a product that has a certain level of…

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 application of the marginal cost pricing principal in a decreasing cost industy would lead…

A: According to the given question The cost principle basically determines the practice of setting the…

Q: Describe the four steps taken to obtain a unit profit?

A: Profit: Profit is the portion of total revenue that remains after deducting the total cost. Below is…

Q: Is the theory of profit maximization logically perfect?

A: Theory of profit maximization:- The theory of profit maximization defines the conditions of maximum…

Q: What is the Marginal Cost if TC =10+5q What is the marginal cost if  TC= 100+5q   Explain

A: TC=10+5qNow,MC=∂TC∂qMC=∂(10+5q)∂qMC=10

Q: Do firms really equate their marginal cost with marginal revenue?

A: Answer

Q: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: What is the profit motive

A: Profit Motive: It is the firm's motivation that persuades the firm to earn more profit. The profit…

Q: What happens to the value of resources when losses are present? If a firm making losses goes out of…

A: The value of resources decreases when the firms make losses as it would mean that the revenue earned…

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

A:

Q: If demand is greater than the order quantity, i.e., D > Q, what is the profit formula?

A: Demand is the quantity of a good or a service that consumers are willing and able to purchase at…

Q: An accountant and an economist are looking at a firm’s records and market situation. The accountant…

A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…

Q: How much profit or loss does the firm make at the selected output level?

A: The additional cost incurred in the manufacturing of one more unit of a good or service is known as…

Q: . According to Joseph Schumpeter, profit is the reward for

A: "Capitalism, Socialism, and Democracy" is the most famous book by Schumpeter. He also introduced the…

Q: When does Concave profit curves occur? Explain with an example?

A: Iso quant curve refers to the curve which shows all the combination of inputs which are capable of…

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: If the firm is minimizing cost it must also be maximizing profit. Agree or Disagree? Why?

A: Firms operating in a market incurs fixed costs and variable costs. Fixed costs do not change when…

Q: What is profit

A: Profit = Revenue - 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: A manager makes the statement that output should be expanded as long as average revenue exceeds…

A: Average revenue: Total revenue per unit of output = Price/OutputAverage cost: Total cost / output =…

Q: Determine the output level that will maximize economic profit.

A: Economic profit is the difference between the sum of explicit and opportunity costs from the revenue…

Q: What is average profit margin means?

A: Profit margin is calculated by dividing income by sales to determine how profitable a firm or…

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: A firm under perfect competition is

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

Q: what is profit margin?

A: Profit margin is a measure of profitability. Profit margin is the diffrrence between the cost of…

Q: Why does exit occur?

A: When the firms earn less than their total cost of production, they make loss. If existing firms in…

Q: If the firms are earning abnormal profit how will the number of firms in industry change?

A: According to the given question In Simple words we can say that the abnormal profits are the profits…

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: Describe the methods that can be used to to determine where profit is maximized?

A: A firm in short run and long run chooses to maximize its profits. Output levels of the firm are…

Q: What is the firms profit or loss?

A: Since the marginal revenue of the firm is above the average total cost and the marginal cost the…

Q: How do you determine if a firm is profit maximizing?

A: A firm is profit maximizing if the firms total cost is less than is total revenue(TR = TC). We can…

Q: What is profit maximizing output?

A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…

Q: . Which is the other name that is given to the average revenue curve?

A: The average revenue curve represents the revenue per unit for different quantities of output.

Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

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: What is Product Expansion?

A: Product Expansion -It is the expansion of economic activity as well as the production levels from…

Q: Explain profit ?

A: The average sales price multiplied by the number of units sold equals revenue. Net income is…

Q: A firms total profit equals?

A: The amount of money a company makes by selling its goods or services at a specific price is revenue.…

Q: Revenue is the same as profit. Do you agree with this statement? Justify your answer.

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The average profit is the difference between

A: To find : What is average profit.

Q: When a firm takes the short-down decision?

A: Shut down is a situation when it is better for the firm not to produce instead of producing.

Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…

A: At break even, total revenue is equals to total cost.