Suppose a car firm's marginal revenue of selling a car is $2,100 and marginal cost of producing a car is $2,150. In this case, producing one more car will _____.   Question 14 options: a increase profit b decrease profit c neither increase nor decrease profit d not enough information

Q: Suppose a food company has both food and store divisions. The food division produces burgers that…

A: The profit maximizing quantity can be calculated with the help of profit maximizing principle.…

Q: 1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve…

A: Supply curve would shift to right If there is an improvement in production technology.

Q: 4. Alset produces electric cars, which have short range or long range. There are 100 drivers who are…

A: Linear pricing refers to the method of charging same price for any given number of units sold .…

Q: Suppose a firm producing coffee provides you with the following information: Price = R100 Quantity =…

A: Given Price = R100 Quantity = 150 units Cost of production = R500

Q: 2. Smile Bright toothpaste company has determined that the demand for its product depends on…

A: Demand refers to the inverse relationship between price and quantity demanded. The demand curve…

Q: CAUTION: MANY PRODUCTS MAY NOT BE EFFECTIVE ON ROADRUNNERS The table below gives data on costs for…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Question 38 Firms A and B produce identical products in a simultaneous move scenario. Both 2 9 i=A,…

A: Under oligopoly, there are few firms and a large number of buyers. Firms may sell homogeneous goods…

Q: Question 7.7  In pure competition, each extra unit of output that a firm sells will yield a marginal…

A: MR is the extra revenue which is generated by increasing the sales of a product by one unit. Pur…

Q: q TVC ATC/AC MC 0 0 1 65 2 105 3 135 4 167 a. 203 6 244 7 293 d. 8 55 355 9 432 10 527 e. 8. Suppose…

A: Introduction Perfect competition is a market where a large no. of firms available in the market and…

Q: answer part B and part C of Question 1.

A: Total Profit:Profit may be defined as surplus remaining after the deduction of total costs from the…

Q: When the marginal-cost curve lies below the marginal-revenue curve     a. the firm cannot improve…

A: Marginal cost is the price at which the production of a firm takes place for a commodity which…

Q: "Healthy Morning" is a firm that produces breakfast cereal and suppose breakfast cereal is a…

A: Price or MR = 10 $Total revenue = 10000 $ TR = Qty * Price 10000 = Qty * 10 Qty = 1000 $ Average…

Q: When a firm makes profit, this sends a signal to others. More competitors would enter the business,…

A: Answer: Introduction: A positive economic profit attracts more firms to the market. As a result of…

Q: 27. A firm has a total revenue of $90,000. Its total explicit costs are $50,000, and its total…

A: The information given is as follows:- Total revenue = $90,000 Explicit cost = $50,000 Implicit cost…

Q: What is the profit-maximizing output? Output Price Total Marginal Total Marginal Total Profit…

A:

Q: 7. A company's profit maximization is equal to the output rule. This is MR =_MC__ 8. A firm's…

A: Note:- Since we can only answer one question at a time and the exact one is not mentioned, so we'll…

Q: QUESTION 15 The data in the below table shows the production and costs of certain firm, use the…

A: Since, you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: If the total cost of producing 11 units of output in this figure is $16, the firm's economic profit…

A: Given : TC = $16, Q= 11 units, P=$8Therefore, TR= P*Q = 8*11 = $88Profit = TR-TC=88-16=$72

Q: 6. A firm sells its product in a perfectly competitive market where other firms charge a price of…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: The data in the below table shows the production and costs of certain firm, use the table to answer…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 25) Refer to Table 8.5. If Phoebe produces four swords, her average fixed costs are A) $2. B) $10.…

A: Average fixed cost can be calculated by using the following formula.

Q: s Inc produces 140,000 ounces of marijuana a year and sells them all for $15 an ounce. Aurora…

A: Total revenue is the product of price and quantity sold.

Q: Answer the question on the basis of the following demand and cost data for a specific firm.…

A: Total profit is measured when all the costs are covered and paid from total revenue.

Q: В.1. a) A profit-maximising firm faces a downward-sloping demand curve for its output and has…

A: To make the most money, a corporation must function in a condition where marginal income and…

Q: Use the information for a firm in the table below to answer the following questions. Quantity Total…

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: C(x) = 70 + 0.10x + 0.001x2 dollars.

A:

Q: Question 4 The following information on demand, revenue and costs of a car maker: Demand: P = 1000 –…

A: We know that the firm maximizes it's profit at a point where…

Q: Table Cost.EX2.2: Data for a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 1…

A: The process being undergone by firms in business for ensuring achievement of the best levels of…

Q: M/c question - Micro 23) When a firm in a competitive market receives $5000 in total revenue, it…

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

Q: 3. An industry is subject to agglomeration economies (and diseconomies). The profit per firm is £100…

A: Firms cluster in cities to take advantage of external economies of scale in production, which arise…

Q: Graphs of marginal revenue and marginal cost functions based on linear models for the demand and…

A: Marginal Cost is the additional cost incurred in the production of one more unit of output. Marginal…

Q: Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: 1. A company produces at an output level where marginal cost is equal to marginal revenue and has…

A: Total revenue is the product of price and quantity. Total cost is the sum of total variable cost and…

Q: Output Total Cost Total Variable Cost (TVC) Average Variable Cost (AVC) Marginal Cost (MC)…

A: It is given that Output Total Cost 0 800 1 1000 2 1400 3 2100 4…

Q: Question pinned Below. Please help me to answer part C only

A: C.The quantity at profit maximizing is 6Total revenue is 6,000The total cost can be calculated as…

Q: 1. A profit-maximizing competitive firm will decide to enter a market when the existing firms in the…

A: in perfect competitive market, there are many number of sellers and buyers which turns the market…

Q: Phoenix Electricity is the only company providing electricity in City H. Will Phoenix Electricity…

A: Phoenix Electricity has monopoly power. A monopoly is a situation that is the only supplier of a…

Q: #7. Lenora and Uma own a dog-grooming business in upstate New York, called Pawkeepsie Groomers. The…

A: In a perfectly competitive market, all firms are price takers and do not have market power due to…

Q: Question 8 Table 5-1 below shows the price and cost information for a firm that operates in a…

A: "In a perfectly competitive market there are many firms and consumers. Firms produce similar…

Q: 8. The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100…

A: An ideal market system is referred to as perfect competition. There are no monopolies in a free…

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?