1. This graph shows a company's marginal cost and marginal revenue functions.Marginal Cost and Marginal RevenueMR, MC, $/item1005050100150q, items| 200-50A. Label the graph, showing which curve is marginal revenue and which is marginal cost.B. What value of q will maximize revenue?c. What value of q will maximize profit?D. This company is currently producing 150 items. If they produce 2 additional items, estimate how thecompany's profit will change. Give a complete sentence expressing your answer.E. Suppose that we know that this company's fixed costs are S2000. Sketch a graph of Revenue and Costfunctions that is consistent with the graphs above of MR and MC.

The blue line is the marginal revenue curve and the yellow line is the marginal cost curve.…

Marginal Cost and Marginal Revenue MR, MC, $/item 100 5아 50 100 150 q, items 200 -50- Label the graph, showing which curve is marginal revenue and which is marginal cost. What value of q will maximize revenue? What value of q will maximize profit? This company is currently producing 150 items. If they produce 2 additional items, estimate how th company's profit will change. Give a complete sentence expressing your answer.

Marginal Cost and Marginal Revenue MR, MC, $/item 100 5아 50 100 150 q, items 200 -50- Label the graph, showing which curve is marginal revenue and which is marginal cost. What value of q will maximize revenue? What value of q will maximize profit? This company is currently producing 150 items. If they produce 2 additional items, estimate how th company's profit will change. Give a complete sentence expressing your answer.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

Question 1 (a) explain the term explicit and implicit costs.give examples. (b) what is economic profit as compared to financial profit? to compute economic profits,which costs are used?Give example.
You own an apartment building with 25 rental units renting at current market rate for $2500 a month each . Annual fixed costs for property tax , mortgage , insurance , and maintenance is $ 400,000 . Plus you have variable costs averaging $500/month per unit 1/ What is your total revenue ? 2/ What are your total costs ? 3/ What is your annual profit ? hand work only!! show the formula you used
10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above
5d What is the relationship between accounting profit and economic profit? Which is relevant for a firm’s decision to continue production and why? Give examples as to what may cause a divergence between accounting and economic profit
Modified TRUE of FALSE. Write T if the statement is TRUE and CHANGE the underline word if the statement is FALSE._______________1. Legal segments cover inflation and interest rates._______________2. There is only one way to determine whether a business is going to be profitable or not._______________3. Social Service (Government) is the service provided or supported by a government or its agencies._______________4. In economics, a feasibility study determines whether certain goods and services become viable or not._______________5. Transportation and Communication are central to the development of any society and its economy. _______________6. Industry is a sector in the economy engaged in the process of producing goods and commodities using tools, machineries and various equipment._______________7. Storage refers to non-transitory, semi-permanent or long term, containment, holding or placement of goods and materials, usually with the intention of retrieving them…
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$0
8. A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are $8,000, and its economic profit is $2,000. What must its total revenue be? A-$7,000 B-$10,000 C-$13,000 D-$18,000 E-Indeterminate 9. If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? A- Average total cost < price; marginal cost = marginal revenue B-Average total cost > price; marginal cost = marginal revenue C-Average total cost < average revenue; marginal cost > marginal revenue D-Total cost > total revenue; marginal cost > marginal revenue E- Total cost = total revenue; marginal cost > marginal revenue
Economics of customer acquisition for fedex: 140 accounts in advertising industry use 2,285 courier paks (cp) per month cp price is $12.50 and variable cost is $4.25 retention rate = 0.9, discount rate = 12% what is the maximum fedex should be willing to spend to acquire a new account in this industry? what is the maximum that fedex should spend/customer per year to increase retention to 0.95? (could you show me it worked out? Thank you!) 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.
Vicky quit her $ 75, 000 a year marketing executive job to open her own firm. In Vicky's first year in business her total revenue equaled $ 180,000. Vicky's explicit cost during the year totaled $ 80,000. To start her business Vicky took $ 50,000 from her savings account that was paying an interest of 10% annually. What is her economic profit for her first year in business? A. -$26,000 B. -$ 25,000 C. $ 25,000 D. $ 24,000
5. El Sol Inc. produces beach towels. The cost of each towel is $ 4.00 and it sells for $ 10.00 after the markup on its cost. Similar towels sell for $ 8.00. How much should each towel cost you to be able to adjust to the market price and keep your profit margin?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?
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?