The Roadrunner farm, Wheeler’s one of competitors, reports that at their profit maximizing output, the price is below average variable cost. What would you advise?

Q: Sarah's profit-maximizing amount of output is sandwiches/day.

A: The condition for profit maximizing level of output in monopolistic competitive market is at where:-…

Q: Answer the questions and define the phrases/terms and explain the relationship between them when…

A: Answer -

Q: A profit maximizing firm will produce an output, if it chooses to produce, where A marginal revenue…

A: Answer: Correct option: A (marginal revenue equals marginal cost) Explanation: A firm maximizes its…

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A: Explicit Costs are the actual monetary payments made in cash while conducting the business…

Q: If demand is greater than the order quantity, i.e., D > Q, what is the profit formula?

A: Demand is the quantity of a good or a service that consumers are willing and able to purchase at…

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A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…

Q: Need help with c (the break even point) and d (the price range for which the company will make a…

A: X                      Y = 159.24x+65065.22 280 159.24*280+65065.22 =…

Q: Calculate marginal revenue if Marginal cost is $300 and marginal profit is also $300

A: Given : Marginal Cost = $300 Marginal Profit = $300

Q: production are $100. The total variable costs are $64 for one unit, $84 for two units, $114 for…

A: Total revenue- It is the money receive by the seller after selling their goods and services , it is…

Q: What is the profit maximizing profit?

A: The revenue is the amount of money earned from selling the units of output. The cost is the cost of…

Q: BigSwaba Corp produces virus home test kits which it sells in the market. It pays a marketing…

A: Given demand function P=48+m^0.5-0.5q TC=200+0.5q^2+m

Q: Drybar, a hair salon, faces a weekly demand for blowouts equal to qp = 1120 - 20P. The salon has…

A: A demand function connects a product's demand (measured in quantities) to factors that impact…

Q: If a monoply fixed costs increase,its price will________and its profit will______.…

A: A monopoly is a type of market in which there is only a single supplier of a good or service. Few…

Q: Economic profit is

A: To find : What is economic profit

Q: conomic profit in the long run. al cost pricing

A: Answer provided below,

Q: Fill in with the correct answer. Your firm has a price of $5, an average total cost of $7, and an…

A: A firm's decision to shut down or operate depends on the following two factors: Price Cost

Q: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…

A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom

Q: The value of Marginal revenue is $40 and the value of marginal cost is $30. Is the firm maximizing…

A: Given : The value of Marginal revenue is $40 and the value of marginal cost is $30.

Q: Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of…

A: Price per cookie can be calculated by using the following formula.

Q: Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced.…

A: Output Produced=300 bean bag chairs Output sold=275 bean bag chairs Average cost for each unit…

Q: Variable costs usually change as the firm alters the quantity of output produced. True False

A: A variable cost  may be a company expense that changes in proportion to what proportion a…

Q: Aji owns a rental space in New York and is thinking of opening a restaurant in that space. An…

A: Introduction: The accounting profit can be calculated by subtracting the explicit cost from the…

Q: At his profit maximizing output, what is the total profit earned by Tim?

A: Answer: A monopolistically competitive firm maximizes its profit where the marginal revenue (MR) is…

Q: What products will your product compete against? Are there any similar products out there? Name and…

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

Q: Firm's fixed costs

A: A fixed cost is one that does not fluctuate when the quantity of products or services produced or…

Q: If marginal cost is $13 and marginal revenue is $40 Calculate marginal profit

A: The information being given is:- Marginal cost = $13 Marginal revenue = $40 We have to calculate…

Q: usiness profit is generally greater than economic profit. a. True b. False

A: According to the given question Economic profits are also known as the accounting profit which…

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A: Average cost reduction and profit maximization are operating techniques that provide comparable…

Q: Calculate the value of marginal cost when marginal revenue is $87 and the Marginal profit is $20

A: The difference between both marginal revenue and marginal cost is said to be as the marginal profit.…

Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: Draw a graph to show the breakeven point, shutdown point and supply curve.

A: Answer: Break-even point: break-even point is the point where the total revenue is equal to the…

Q: Degree of competition and define it's types.

A: There are four degrees of competition.  Monopoly : in monopoly there is only one seller and hence…

Q: TFC= Total Fixed Cost Q= Quantity of Output Marginal Cost TVC= Total Variable Cost MC = p= Product…

A: average of some cost is determined by total dividing total no. of quantity.

Q: How do you calculate a firm's total cost and total revenue?

A: Total cost (TC) refers to the cost of all inputs needed to produce with the given unit of output. It…

Q: Distinguish clearly between Marginal Revenue and Marginal Costs using suitable examples.

A: Marginal revenue is defined as the additional revenue after selling one more unit of output.

Q: if the price is less than lowest average variable cost the firm will shut down

A: A cost curve is a graph of production costs vs total amount produced in economics. The consequence…

Q: Profit maximization of the firm happens when marginal cost > marginal revenue True / False

A: Profits are the excess of revenue receipts over the costs incurred through the production of goods…

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: Revenue is the same as profit. Do you agree with this statement? Justify your answer.

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

Q: The graph below is for answering the next 5 questions (18 to 22): Price MC ATC $10 R AC EFG Afc AUC…

A: Profit is maximized when MR=MC, here P=MR=$10.

Q: The average profit is the difference between

A: To find : What is average profit.

Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…

A: At break even, total revenue is equals to total cost.

Q: Humana hospitals in 1991 charged very high prices relative to their marginal costs. For example,…

A: Given: Price charged to patients=$103.65 Cost to hospital=$8.35 To find: Price to marginal cost…