Use the following demand schedule to determine total and marginal revenue for each possible level of sales: Product price: 2, 2, 2, 2, 2, 2 Quantity demanded: 0, 1, 2, 3, 4, 5 Total revenue: 0, 2, 4, 6, 8, 10 MR: -, 2, 2, 2, 2, 2 What can you conclude about structure of the industry in which this firm is operating.

Use the following demand schedule to determine total and marginal revenue for each possible level of sales: Product price: 2, 2, 2, 2, 2, 2 Quantity demanded: 0, 1, 2, 3, 4, 5 Total revenue: 0, 2, 4, 6, 8, 10 MR: -, 2, 2, 2, 2, 2 What can you conclude about structure of the industry in which this firm is operating.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 12SQP

See similar textbooks

Similar questions

Description Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales a. What can you conclude about the structure of the industry in which this firm is operating? Explain. b. Graph the demand, total-revenue, and marginal-revenue curves for this firm. c. Why do the demand and marginal-revenue curves coincide? d. “Marginal revenue is the change in total revenue associated with additional units of output.” Explain verbally and graphically, using the data in the table.
Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: a. What can you conclude about the structure of the industry in which this firm is operating? Explain. b. Graph the demand, total-revenue, and marginal-revenue curves for this firm. c. Why do the demand and marginal-revenue curves coincide? d. “Marginal revenue is the change in total revenue associated with additional units of output.” Explain verbally and graphically, using the data in the table.
Complete the following table and identify the profit-maximizing output. What is true about marginal revenue and marginal costs when profit is maximized?What would be the profit-maximizing level of output if price fell to $9?
The figure below represents the short-run curves for TK Ltd, a popular Chinese cuisine restaurant. Answer the questions below. What market structure do you think TK Ltd is in? Explain using the characteristics of the market structure. What price does TK Ltd charge and what quantity does the firm produce to maximize profit or loss? Calculate this firm’s profit or loss. If this is a typical firm in the market, what do you think will happen to market supply and profit for this industry in the long run? Briefly explain
Answer the questions based on the table below - Complete the table below. - In which market does this firm operate? Explain your reasons. - Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium. Quantity(unit) Total Revenue($) Average Revenue($) MarginalRevenue($) TotalCost($) MarginalCost($) 1 10 5 2 18 11 3 24 16 4 28 20 5 30 23 6 30 25
Prove that the marginal revenue curve has twice the slope and the same intercept as a linear demand curve (say p(q) = a - bq).
Consider the following short-run data for a perfect competitor. Use the data to answer the following questions. Justify your answers and calculations. Quantity Demanded Price TC TVC MC 0 22 150 - 1 20 2 15 3 22 4 34 5 54 6 78 d) What is the profit maximizing level of output for this producer? e) Calculate profits or losses at all levels of output.
How can I describe the equilibrium situation of the firm operating in the perfectly competitive market and the firm operating in the monopoly market by drawing graphics, and at the same time, how can I explain the cost, revenue and demand structures with graphics? b210801021@subu.edu.tr You can send a reply to this address. If it can be in Turkish, I would be happy, but if it is not, it is not a problem.
Refer to Figure 1 for questions 18-20. In Figure 1: D = Demand Curve; MR = Marginal Revenue Curve; and MC = LRATC is Marginal Cost, assumed to be equal to Long Run Average Total Cost. What is the competitive output and price for this market? Options: a) P = $3, Q = 7 b) P = $6, Q = 4 c) P = $3, Q = 4 d) P = $6, Q = 7
30. Company Alpha produces its product in a perfectly competitive market that is in long-run equilibrium. What will happen if it lowers its price while increasing its output? It will increase revenue but increase costs by the same amount. It will incur economic losses. It will take business from its competitors, increasing its revenue and profit. It will begin to develop market power, making its market imperfectly competitive. Its producer surplus will increase but consumer surplus will decrease by a greater amount. 31. If barriers to entry ________ or product differentiation ________, competition in a market will ________. increase; increases; increase increase; decreases; increase decrease; increases; increase decrease; decreases; increase decrease; decreases; decrease
Now compute the missing marginal revenue from the table. The table is reproduced here for convenience. Note: answers should be integers only (i.e 1,2,3,4,5,6,.... etc). Based on the information you computed, what quantity should the firm produce to maximize profits? Quantity Total Cost ($) Total Revenue ($) Marginal Cost ($) Marginal Revenue ($) 0 8 0 -- ? 1 9 8 ? 2 10 16 ? 3 11 24 ? 4 13 32 ? 5 19 40 ? 6 27 48 ? 7 37 56 ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1- Suppose that the total cost function of a firm is given as follows;TC = 500 + 2Q2And the price of the firm’s product is determined by the market equilibrium at $100.a- Set the profit maximizing condition . Find the profit maximizing output level for this firm .b- What is the total revenue ?c- What is the total cost ?d- What is the profit earned by the firm ?e- Illustrate your answer by using a well-labeled graph .f- Denote the break even price level with Pb on the same graph .g- Denote the shut down price level with Ps on the same graph.h- Show the firm’s supply curve on the same graph .i- Does the firm function in short-run or long-run ? Why ?