What is the firm's profit if the price is P1? What is the firm's profit if the price is P2?

Q: If the current equilibrium price in the pencil market is $1, how many pencils will Frances produce,…

A: Perfect competition is the market form which is characterized by a large number of buyers and…

Q: Referring to Figure 1 in Question 14, When the price of the good is $175, the firm's maximum profit…

A: Profit=Total Revenue-Total Cost Profit=TR-TC   We know that, TR=P*Q When P=175, Q=515 TR=175*515…

Q: Due to the Covid 19 restrictions put on restaurants to carry less number in house. Would this effect…

A: The covid-19 has affected the both supply as well as demand, but demand has been affected most.

Q: Apply the marginal principle to determine the profit-maximizing price and output.

A: The profit-maximizing price and output is got by taking the first order condition of the…

Q: If the price of the good is 0.70$ And the firm is producing 100 units what would the profit be -10 5…

A: Marginal cost alludes to the extra expense to produce each extra unit. Average total cost is the…

Q: Rahim runs a fruit stand where he sells apples and mangoes. Each apple costs BDT 5.00 per piece and…

A: Pa=5 Pm=8 Q m = 300-5P a + 3P mQ a = 3P a – 2.5P m

Q: The following appeared in an article in the Wall Street Journal: “Last week, true to discount roots…

A: The question pertains to structure of the market in which the airline companies operate.

Q: What is price taker meaning?

A: A price taker is a seller (or buyer) that has no influence on price. Price takers that are sellers…

Q: If demand curve for alphonso mangoes is D = 25000 ­- 20P and supply curve is S = 10000 + 80P, find…

A: Equilibrium price is the price where demand is equal to the supply.

Q: A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy…

A: Equilibrium exists when the quantity of a good demanded is just equal to the quantity of the good…

Q: To increase a company's profit, a manager suggests that the company needs to increase the value of…

A: Answer: Profit per unit is the difference between the price of the product and the average cost of…

Q: The inverse of market demand is defined as 1/D(q) = (a-q)/b. a. True  b. False?

A: Price becomes a function of quantity demanded with an inverse demand curve. This indicates that…

Q: Is it ever possible that if someone is a net seller of a good, and the price of the good he sells…

A: Seller is person who sales goods and services in market in order to make some money . And seller is…

Q: A study indicated that the optimal price for a consumer product is $32.45. Most products in the…

A: When there are many substitutes available in the market for a particular good, its demand becomes…

Q: •If you are the manager of a company, and you recently discovered that your goods are considered by…

A: In the market, goods are classified according to consumer behavior, and the relation between the…

Q: If the prices of commodities are P1 and P2, find the optimal levels of output that the firm should…

A: The firm is perfectly competitive so the profit maximization condition is  P = MC In perfect…

Q: In many areas, the cost of real estate is increasing at an increasing rate. Many homes are being…

A: In a dynamic, free market, the mortgage lenders compete to acquire customers, which either increases…

Q: The manager of a fleet of cars currently rents them out at the market price of $49 per day, with…

A: Cars and gasoline are complimentary goods, which means, the goods are used together and they have…

Q: then the demand curve for the commodity will be

A: Demand curve shows various combinations of price and quantity demanded. Shape of the demand curve…

Q: The profit maximizing price in the above table is:

A: Option (a).

Q: can a manager earn profit by exploiting market inefficiencies? What are some common tactics

A: Its often tendancy for managers to exploit the market inefficiencies and earn profit.

Q: Suppose the market for refrigerators is illustrated in the figure to the right. Assume refrigerators…

A: Given is the market for refrigerator. There are two demand curves.

Q: Will supply curves have the same shape in allmarkets? If not, how will they differ?

A: Supply: It refers to the goods and services that are available in the economy. The more the supply…

Q: What is a perfect market

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Mr. X is a producer of pizza. In his first day he produced 8 million pizzas in the amount of $15 per…

A: Demand schedule depicts inverse relation between price and quantity.

Q: The utility function of Master Enterprise is U (T, M) = T'/4 M³/4 Where T and M are the two goods…

A: Given: The utility function of master enterprise is: U T, M = T1/4 M3/4 Where T and M are = two…

Q: How do you find Profit maximization using total cost and total revenue curves in a price takers…

A: Answer: Note: since you have mentioned curves so here I am explaining it graphically. In perfect…

Q: How does a firm maximise its profit in a perfect compitition?

A: Profit maximization is the mechanism whereby a company determines the price, supply, and production…

Q: Basing from the profit equation, what among the variables is most dependent to a change in price?…

A: Profit Profit is the difference between the total revenue and the total cost. Total revenue is the…

Q: D: P=100-Q and S: MC=Q. What is the profit-maximizing price and quantity? Round to two decimal…

A: P=100-Q TR=PQ TR=(100-Q)Q=100Q-Q2 MR=dTRdQ MR=100-2Q

Q: A firm knows that its price (P) and its output (Q) are related by the expression P = 80 – 2Q Find…

A: Price (P) and output (Q) are related by the expression P = 80 - 2Q  Hence, Total Revenue TR = P x Q…

Q: Supply curve crosses with vertical oxes on point 20 unit, If supply curve slope is 5 Then find…

A: Let the supply curve be:- P = D + bQswhere D is Y axis interceptorb is slope of the curveQS is the…

Q: How does the equilibrium price of a normal commodity change when income of its buyers falls? Explain…

A: A normal good or a normal commodity refers to a good whose demand increases as the income of an…

Q: A Lyft driver has the short-run costs below, what is the fixed cost? What is the marginal cost of…

A: Fixed Cost remains same at all units of output Marginal Cost = Change in Total Cost / Change in…

Q: Why does a degree in price dispersion suggest that we do not have a perfect market?

A: Introduction- Firstly we will study the meaning of price dispersion, it occurs when the different…

Q: Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best…

A: Consumer: It refers to the people who buy goods and services from the market. The producer will be…

Q: F(x)=2-3p and C(x) = 3x^2 calculate the formula for the optimal output and its price

A: We are going to solve this question using marginal approach.

Q: If two commodities are substitutes, a change in the price of the one, ceteris paribus, cause a…

A: Substitute goods refer to the goods that can be replaced by other goods as they serve some purpose…

Q: How can the owner of The Burger Barn determine if a one-day promotional sale on milkshakes will…

A: We know that there are two types of related goods . One of them is complimentary goods which are…

Q: Prove the law of supply, which states that when the market price increases, the profit-maximizing…

A: The law of supply summarizes the effect price changes and one would be working on the producers…

Q: What price does a firm charge for the good it produces?

A: Economics is a branch of social science that deals with the production, consumption, and…

Q: You are a manager of an advertising company. The company is running short of funds, so you decide to…

A: The revenue of a firm can be calculated by multiplying the price of goods by quantity. Total Revenue…

Q: Explain how the price leader determines a profit-maximizing price.

A: In a market, price leadership refers to the situation when a firm in the market gets some…