Producer surplus is equal to A. Revenue minus average variable cost B. Revenue plus marginal cost C. Revenue minus total costs D. Profits plus fixed costs E. Revenue minus variable cost
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- A firm sells its product i two different markets. the inverse demand in market A is PA=72-5QA & in market B, it is PB=60-3QB.it has fixed cost of 72.each unit it produces costs 12 that is marginal cost equals 12.to maximize profits, what quantities of output will be sold in each market & what will total profits be?In a perfect competition type of market; price is $250.00, quantity is 10,000, lump-sum tax is $5,000, price elasticity of demand is -1.5, and price elasticity of supply is 1. What is the price with tax for the perfect competition marketA firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB = 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?
- Marginal cost= 2x+3 Average variable cost= x+3 Variable cost=x^2 + 3x x is the daily output. Product's price is 13 dollars. Part a) Calculate the level of output that will be produced. Part b) Calculate the producer surplus of the firm. Part c) The fixed costs are 5 dollars. In the short run, is the firm making a 0 economic profit, a positive profit, or a negative profit? Explain why.Immagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costa are unaffected. Which of the following statements are true? 1. The firm's AC at all levels of Q would be Lower. 2. The firm would extract an innovation rent from selling at the market price with lower costs. 3. The firm's point of minimum AC would be a higher level of Q. 4. The innovation would immediately cause the market price to drop.A perfectly competitive hardware manufacturer has a total revenue of $85 million, total variable costs of $45 million, and fixed costs of $10 million. What is the firm’s producer surplus?
- In competitive markets economic profit becomes zero in the long-run. However, it is also possible for some firms to earn a greater accounting profit and to enjoy a higher producer surplus than other firms. How is it possible? Explain in detail. EXPLANATIONS DOES NOT EQUAL DESCRIPTION PLEASE EXPLAIN IT. AND EXPLAIN EVERY DETAIL LONG.In competitive markets economic profit becomes zero in the long-run. However, it is also possible for some firms to earn a greater accounting profit and to enjoy a higher producer surplus than other firms. How is it possible?A firm's faces a constant output price of $5. It produces 37 units and incurs a MC of $3. Which of the following is true? Select all that apply. A. The firm is perfectly competitive because it faces a horizontal straight line demand curve. B. The firm is perfectly competitive because it faces a horizontal straight line Average Revenue graph. C. The firm's marginal revenue is $5. D. The firm's Total Revenue equals $185. E. The firm's Total Cost equals $111.
- A firm has marginal revenue MR(x)=3x and marginal cost AC(x)=1/3x^2 Find the profit obtained by the firm for production level between the starting point and the point when MC(x)=MR(x)Consider a perfectly newspaper market with identical firms, each with the usual shaped cost curves. (1) The government imposes a (permanent) $2 per-newspaper subsidy on the market. What is the impact of the subsidy on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts. (2) If demand permanently decreases, what is the impact on the newspaper market? Make sure to distinguish between the short-run and the long-run impacts.Which statement about the total surplus is correct? Question 10 options: it is equal to value to buyers minus cost to sellers All other answers are correct It is equal to consumer surplus plus producer surplus It is maximized, under certain conditions, if perfect competition exists