Use drag and drop to match each of the following with its definition. Total revenue Marginal revenue Average revenue Price taker A firm that is too small to be able to influence the market price. A firm's total earnings from a specified level of sales within a specified period. The extra revenue gained by selling one or more unit(s) per time period. Total revenue per unit of output.

Use drag and drop to match each of the following with its definition. Total revenue Marginal revenue Average revenue Price taker A firm that is too small to be able to influence the market price. A firm's total earnings from a specified level of sales within a specified period. The extra revenue gained by selling one or more unit(s) per time period. Total revenue per unit of output.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 7E

See similar textbooks

Similar questions

The formula for calculating marginal revenue is... Group of answer choices Change in quantity sold minus change in quantity produced. Change in total revenue / change in quantity sold. Change in total revenue / the change in quantity produced. Change in quantity sold / change in quantity produced.
Royersford Knitting Mills, Ltd. sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $10 each. Fixed costs $60,000, and total variable costs equal $120,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand is estimated at -2. Evaluate the impact of the proposal to cut prices on (1) total revenue, (2) total cost, and (3) total profits. If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $20 each. Fixed costs amount to $120,000, and total variable costs equal $240,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2. The proposal to cut prices by 5 percent would total revenues from $400,000 to . Total costs would be and total profits would be . If average variable costs are assumed to remain constant over a 10 percent increase in output, total profits after a 5 percent price cut would be .
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $10 each. Fixed costs amount to $60,000, and total variable costs equal $120,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents.The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2.a. Evaluate the impact of the proposal to cut prices on (i) total revenue, (ii) total cost, and (iii) total profits.b. If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Royersford Knitting Mills, Ltd., sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of £40 each. Fixed costs amount to £240,000, and total variable costs equal £480,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand with respect to prices is estimated at −2. (mark as many as apply) The proposal to cut prices by 5 percent would increase total revenues from £800,000 to 836,000 – correct Total costs would be £759,200 and total profits would be £76,800– correct The proposal to cut prices by 5 percent would decrease total revenues from £800,000 to 836,000 – incorrect Total costs would be £759,200 and total revenues would be £76,800 – incorrect Could anyone explain this??
"A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its marginal costs." Agree or disagree with this statement.
How many of the following will occur with a linear total revenue curve? (i) A linear cost curve (ii) A linear profit curve (iii) A single break-even point (iv) Increasing profits as output increases beyond the upper break-even point a.None b.Four c.Three d.One e.Two
A perfectly competitive firm would benefit from charging a price below the market price because the firm would achieve Question 2 options: a) higher average revenue b) higher profits c) lower total costs d) none of the above
Knitting Mills sells a line of women’s knit underwear. The firm now sells about 20,000 pairs a year at an average price of $10 each. Fixed costs $60,000, and total variable costs equal $120,000. The production department has estimated that a 10 percent increase in output would not affect fixed costs but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent to increase sales, total revenues, and profits. The arc elasticity of demand is estimated at -2. i. Evaluate the impact of the proposal to cut prices on (1) total revenue, (2) total cost, and (3) total profits. ii. If average variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Q-1 Nintendo, a leading manufacturer of video games is about to introduce four new games. The accompanying table summarizes price and cost data. Combined fixed costs equal $500,000. Game-1 Game-2 Game-3 Game-4 Selling price $50 $45 $30 $20 Variable cost per unit $20 $15 $10 $10 Determine a joint total revenue function for sales of the video games. Determine a joint total cost function for the development of video games. Determine the profit function for sales of the video games. What is profit if the firm sells 8000, 10000, 20000 and 5000 units respectively of the four video games?
The table below shows a short run situation is evident from: a)the linear marginal revenue function b)the constant price c)the increasing marginal cost d)the presence of positive costs at Q=0 e)the absence of marginal values at Q=0
A firm in perfect competition is producing 42 units of a product. They only produce this one type of product and earn a total revenue of $525. The demand line for that product crosses the y-axis at $12.50. True or false?