TR MR MC PROFIT 14 2 3.00 12 4 3.00 10 3.00 8 3.00 6 10 3.00 4 12 3.00 2 14 3.00 3. IF YOU ARE THE MANAGER/OWNER OF THE FIRM, IS IT ADVISABLE TO PRODUCE THE 8TH UNIT 4. IF YOU ARE THE MANAGER/OWNER OF THE FIRM WHAT IS YOUR BASIS TO STOP FROM PRODUCING? 5. Draw demand curve
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- Not for profit hosptials, do they eliminate the need to have a for-profit hosptial?A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2. The factor prices are p1=$2.50p1=$2.50 and p2=$4p2=$4 and the firm can purchase as much of either factor at the given prices. What is the firm's marginal cost? a. None of the above b. ≈$1.07 c. ≈$2.32 d. ≈$1.74You are the vice president of a firm. After some analysis, you have determined that increasing the salaries of your workers by 10% will likely help increase your firm's profits. As a result of this finding, you meet with your firm's CEO and urge them to implement this 10% pay raise. a) Describe two arguments in favour of this 10% pay raise that centers on its potential to improve worker productivity. b) Describe two arguments in favour of this 10% pay raise that centers on its potential to lower your firm’s total costs.
- Chloe is a chef who runs a niche food delivery business in a competitive industry. Chloe specializes in making monster calzones. Chloe sells 20 monster calzones per month. Her monthly total revenue is $5,000. The marginal cost of making a monster calzone is $300. In order to maximize profits, Chloe should A) make more than 20 calzones per month. B) make fewer than 20 calzones per month. C) continue to make 20 calzones per month. D) We do not have enough information with which to answer the question.Young MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.PakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. (need answers of 2 & 3) 1. Given your calculations in (a), illustrate the demand, marginal revenue and marginal cost curves of the firm in a graph. 2. If we were to compare PakMonoG with a perfect competitive firm in the market, are there differences in characteristics of the two structures? 3. What are welfare implications? Is total societal welfare of the firm higher or lower than that of a competitive firm? Support your answer using the graph in (b) above.
- Explain manufacturing firms should use demand leading instead of demand trailing capacity strategy.You are the manager of a firm that sells a “commodity” in a market that resembles perfect competition, and your cost function is C(Q) = 2Q + 3Q2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 70 percent chance the market price will be $200 and a 30 percent chance it will be $600.a. Calculate the expected market price.$ b. What ouptut should you produce in order to maximize expected profits?unitsc. What are your expected profits?$Our firm produces two products: generators and solar panels. Name five economies of scale you would expect our company to leverage and explain how you would expect the company to leverage them.
- Rasiah's Garden of fruit is a firm selling fruits in a perfectly competitive market. Total fixed cost is RM50, and the wage for labour is RM5 per worker. The estimated output produced and cost are as follows: Labour Output (Kg of fruits) usage 0. 0. 8. 10 12 20 17 30 24 40 33 50 44 60 57 70 Calculate the total variable cost, average total cost, average variable cost, marginal cost, total revenue and marginal revenue. b. If Rasiah's garden of Fruits sells a kilo of fruit for RM3.50, how many Kg of fruit (output) should the firm sell in order to maximise profits, and how much profits would the firm make?Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote. You are the CEO of a firm operating in a perfectly competitive market with a plant size of 5. Your MC is higher than the MR. Explain what you do for the firm to reach the profit maximizing point? Provide a graph that shows rationale behind your answer. It might be helpful to include in the graph the plant capacity and the amount at which it produces at the lowest point of the MC curve.To maximize profit, a price taker will expand its output as long as the sale of additional units adds more to revenues (marginal revenues) than to costs (marginal costs). Therefore, the profit-maximizing price taker will produce the output level at which marginal revenue (and price) equals marginal cost. 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.
