if marginal revenue equals $2 and marginal cost equals $3 at a certain output then.... a. the output is wealth maxinmizing b. that output it not profitable c. that output does maximize wealth d.that output should be expanded
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if marginal revenue equals $2 and marginal cost equals $3 at a certain output then.... a. the output is wealth maxinmizing b. that output it not profitable c. that output does maximize wealth d.that output should be expanded
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- Token price increases from $1.25 to $2.50: Ridership now declines to 25 % equivalent to 10 M less riders.......Assume costs (accounting) increase to $ 55 M and economic costs increase to $ 65 M; Supply increases by + 10%; * What is your revised "PED" & "PES"?; * What are your new profit & loss values based on evaluation of both accounting & economic costs ? Are you better or worse off ? * What could happen if your analysis was extended from one (1) month to six (6) months ? * What could happen if your market's (audience) average income increases or decreases by + / - 15 % given the change in the token cost from $1.25 to $2.50 ? * Would your "PED" and "PES" and profit / loss values change as well ?*2. The demand for meat pies is given by Qd = 60,000 – 10,000P. The current price for meat pies is $3.50. a) If the price increases, will more or less money be spent on meat pies? b) At what point will revenue on pies be maximized? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Total Total Revenue Cost Quantity (TR) (TC) Profit (MR) (MC) 0 0 8 1 8 10 2 16 11 3 24 13 4 32 16 5 40 20 6 48 27 7 56 36 8 64 47 9 72 65 10 80 90 Marginal Marginal Revenue Cost Fill in the table to determine the profit maximizing level of output, price, and profit. The optimal quantity is A/ A (number) units, the optimal price is (number) dollars, which maximizes (number) dollars. This table A profits at displays profit maximization under the (perfect competition / monopolistic competition / oligopoly / monopoly) market structure.
- Please show work for each so I may better understand for study purposes. Question #1 a. For the following three cases, calculate i: The marginal revenue curve ii: The level of output where MR = MC (i.e., set the equation from item i equal to marginal cost and solve for Q) iii: The profit-maximizing price (i.e., plug your answer from equation ii into the demand curve) iv: Total revenue and total cost at this level of output v: total profit Case A: Demand: P = 40 − Q Fixed cost = 100 Marginal cost = 10 Case B: Demand: P = 100 − 2Q Fixed cost = 100 Marginal cost = 10 Case C: Demand: P = 100 − 2Q Fixed cost = 100 Marginal cost = 20. b. What is the markup in each case? Measure it two ways: first in dollars, as price minus marginal cost, and then as a percentage markup [100 × (P – MC)/MC, reported as a percent c. If you solved part b correctly, you found that when costs rose from Case B to Case C, the monopolist’s optimal price increased....Why didn’t the…The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30 q2 − 12.85q + 20 + 400/q, where q is the firm's output. i. Is the rate of change of profit increasing or decreasing when theouput level of the firm is 10 units?ii. Determine the level of output for which the firmᇱs profit is maximized.iii. What is the firm's maximum profit?The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q + 20 +400/q, where q is the firm's output. i. Is the rate of change of profit increasing or decreasing when theouput level of the firm is 10 units?ii. Determine the level of output for which the firm's profit is maximized.iii. What is the firm's maximum profit?
- 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:)E4 P Q ARC POINT Total Revenue Marginal Revenue 7 100 6.5 200 6 300 5.5 400 5 500 4.5 600 4 700 3.5 800 3 900 2.5 1000 2 1100 1.5 1200 find the remaining values and writ the comments on the results?Max barbershop is considering raining prices by $5 per haircut. Their current price for a cut is $23 abd babers receive 50% of the revenues for each haircut. Since Max is concerned about demand dropping due to the price increase, he is also planning to start advertising the shop on TV for $895 month. If current fixed cost are $11,576/month the current profit is $2000/month by what percent can demand decrease at the new price level and maintain current levels of profit on the business?
- 2.In order to maximize profits, a firm will produce output where (check all that apply) a. total revenue equals total cost b. price equals marginal cost c. wage equals price times marginal product d. price equals average cost28. Marginal cost is greater than marginal revenue beyond output 320. True False 29. At 100 output, marginal revenue is less than marginal cost. * True FalseIf can no plagiarism ---------------------------------- Critical Thinking 1: The diamond-water paradoxIn “An Inquiry into the Nature and Causes of the Wealth of Nations” published in 1776, Adam Smith wrote:“Nothing is more useful than water: but it will purchase scarcely anything… A diamond, on the contrary, has scarcely any use-value; but a very great quantity of other goods may frequently be had in exchange for it”Explain the diamond-water paradox and find out in the literature how economists have later solved this paradox.