In pure competition, product price is Greater than marginal revenue Equal to marginal revenue Equal to total revenue Greater than total revenue
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A: In perfect competition there are large number of firms selling identical goods.
Q: A purely competitive firm's marginal revenue curve is not the same as its demand curve. True False
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A: Perfect competition is a type of market structure.
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Q: demand function is given by P = 25 - Q and Total cost function TC = Q. Calculate firms price and…
A: In a perfect competition, the equilibrium condition is where price is equal to marginal cost.
Q: d. Marginal revenue exceeds marginal cost at the current output level. e. Price exceeds average…
A: D. When the marginal revenue is greater than the marginal cost, the production of the firm will…
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A: Marginal revenue is the additional total revenue earned with an additional unit of production.
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A: Average variable cost is given by AVC =TVCq
Q: Average revenue is equal to marginal revenue between zero units of output and one unit of output.
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A: Marginal revenue is the additional revenue earned with an additional unit of output sold.
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A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.
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Q: is equal to average variable cost. is greater than marginal revenue. equals marginal revenue.
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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: In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that…
A: Pure competition is the market form in which there are large numbers of buyers and sellers that…
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In pure competition, product
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- Greater than marginal revenue
- Equal to marginal revenue
- Equal to total revenue
- Greater than total revenue
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- A firm has the following revenue and cost functions.TR = 120 Q – Q2TC =1/2 Q2 +30 Q + 10Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)c)Given that the cost function MC=x-2x^2-1 and the revenue function as MR=2x^2-3x-1.Assuming pure competition,determine the point atwhich profit maximized and the total profit made.A firm has the following revenue and cost functions. TR = 60 Q – Q^2TC = 1/2 Q^2 +30Q + 30Determine the quantity level at which the firm maximizes its total profit.(Hint: use marginal revenue = marginal cost rule)
- The fact that a purely competitive firm’s totalrevenue curve is linear and upsloping to the right impliesthat: A. product price increases as outputincreases. B. product price decreases as outputincreases. C. product price is constant al all levels ofoutput. D. marginal revenue declines as more output isproduced.A firm has the following revenue and cost functions. TR= 120 Q - Q² TR= ½ Q² + 30 Q + 10 Determine the quantity level at which the firm maximizes it's total profit. ( Hint ;use marginal revenue=marginal cost) (300 word with working)Problem 3 : Perfect competitionThe firm’s production function has the following form: Q = f(L) = √L, where L is the numberof employees. Fixed cost is $10, wage is $1, and the buyers pay the firm $10 for its product.a) For the levels of quantity of 0, 1, 2, 3, 4, 5, 6, and 7:• Calculate the fixed cost, the variable cost, the total cost, the total revenue, and theprofit.• If the firm wants to maximize profit, what level of output should it choose?b) For the change in quantity from 0 to 1, from 1 to 2, …, from 6 to 7:• Calculate the marginal product of labor, the marginal cost, and the marginalrevenue.• Is the marginal product of labor diminishing?• On a graph, show the marginal cost and the marginal revenue. Put the pointsbetween the whole numbers. Make sure you label the axes and the curves. Show thepoint where the two curves cross. c) Provide a brief explanation for the following questions:• Is the firm operating on a perfectly competitive market?• Is the market in the long-run…
- In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues = marginal costs), the firm will be able to make at least a normal profit. True of False. Explain. All firms produce where MR=MC. Price takers produce and price where P=ATC=MC=MR. That is the "normal profit" level. Profits above that level are considered "economic profits." Review economic profits, normal profits, explicit costs, and implicit costs. Why is 'normal profit' considered to be a cost, in economics?Sergio Lopez is a publisher of Latin American poetry. His fixed cost is $525, and the cost to produce each individual copy of his book is $3.50. Currently, Sergio is selling these books for $6 each. So far this year, he has produced x a. Write a linear cost function C for Sergio’s book production, in terms of x. b. Find the linear revenue function R for selling x copies of the book. Remember that P(x) = (price)x. c. Use and 1b. to determine the profit function P for selling x books. Write the formula in simplified form. d.Use your answer for 1c to determine the profit, in dollars, for selling 300 books.Assuming the market equilibrium price for tomatoes is $1.75 per kilo in perfect competition market. Draw the total revenue and marginal revenue curves for the typical tomato grower on the same graph. Explain how marginal revenue and price are related to the total revenue.
- Provide example of economic profit( explicit, implicit costs)A firm has the following demand and average total cost functions: Q = 30 − PATC =(7/Q)− 6 +(1/2)Q Find:i. The total revenue function ii. The total cost function iii. The level of output that will maximize revenue and minimize total costs iv. The profit function and the level of output that maximize profits v. Show that AR = PSuppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to beMC=q+35 MR=560+22q−q2Where q is the quantity produced and the firm’s break-even is 5 units per weekYou are Required to1. determine the total cost and the total revenue function in terms of q.2. estimate the output at which profit is maximize3. calculate the maximum profit