Q: What two lines determine whether a firm is making positive or negative or zero profits?
A: Introduction The perfect competitive firm only needs to decide on one thing: how much to make. To…
Q: A firm is producing the profit-maximizing amount of output when it is producing where its curve…
A: The total cost is the sum of fixed cost and variable cost. The fixed cost is the cost of fixed…
Q: a) What is meant by zero economic profit? (b) What are the conditions that need to be satisfied for…
A: Zero Economic Profit refers to no profit or no loss. It means that firm breakevens. In case of Zero…
Q: a. What is the firm's profit-maximizing output level? units What price will the firm charge? $ b.…
A: Given the diagram Marginal cost (MC) Average variable cost (AVC) Average total cost (ATC)
Q: Using graph, explain when the firm maximizes its profit under perfect completion?
A: The total revenue is calculated by the price of the good times the quantity of goods purchased. The…
Q: 4) Why will a firm never plan to supply an output at which it has increasing returns to scale?
A: An increasing return to scale refers to the scale that occurs when the output rises by a larger…
Q: f a competitive firm finds that its average variable cost is decreasing at its current profit…
A: A competitive firm is a firm that doing business in that market where the large number of buyers and…
Q: 3. A profit-maximizing firm has the total-cost function C = - a? + 6x + 50 and sells into a…
A:
Q: Suppose a firm is operating in a competitive market and is maximizing profit by producing at…
A: Perfect competition is a market structure, in which a large number of buyers and sellers sell…
Q: 2. The following tables give information about demand and total cost for two firms. In the short…
A: There is no express demand from the corporation. schedule. The price is presented in the 'Above a…
Q: What quantity should the firm produce to maximize profits? 400 units BO 800 units CO 600 units 200…
A: The Condition of Profit maximization in a monopoly Market is where the Marginal cost is equal to the…
Q: Explain the concepts of revene, costs, and profit
A: Production is the process of merging numerous material and immaterial inputs (plans, know-how) to…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: Competitive firm: This firm has no control over a change of market supply or demand.
Q: MC ATC P = MR = AR
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Evaluate the view that the main goal of firms will always be profit maximization
A: The profit is the excess revenue made by the firms after deducting the total cost of production from…
Q: The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per…
A: MR and AR curve is downward sloping curve which means more of good only can be sold with low price .…
Q: Why would a firm that incurs losses choose to produce rather than shut down? Why could this choice…
A: In short run firm exhibits return to factor where only one factor is variable and another factor is…
Q: How do you define 'profit
A: The main objective of the firm in whether competitive or imperfect competition market is Profit…
Q: c. Find the profit and the instantaneous rate of change of profit at a production level of 800 car…
A: Profit is said to be the revenue generated by a firm over its cost, which can be calculated using…
Q: 26. Which of the following statements about profit maximization is true? a. It is something that all…
A: Profits = Total Revenue - Total Cost
Q: A manager makes the statement that output should be expanded as long as average revenue exceeds…
A: Average revenue: Total revenue per unit of output = Price/OutputAverage cost: Total cost / output =…
Q: 17.1 REVENUE, COST, AND PROFIT APPLICATIONSTSO SYAHD 797 20 A firm sells each unit of a product for…
A: Given values: The selling price = $50 Total cost, C(x) = 10 - 2.5x2 + x2 Total number of units = x…
Q: The relationship between the firm's average variable, average total, and marginal cost curves above:…
A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…
Q: 4. Profit maximization in the cost-curve diagram Suppose that the market for blenders is a…
A: A perfectly competitive firm is price taker as there are large number of firms selling identical…
Q: 2.5 A firm's costs are given in the following table. TC TFC TVC AVC АТС MC $50 1 70 80 3. 90 4. 110…
A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…
Q: Describe how your restaurant would maximize its short-run profits.
A: When an individual wants to open a business, his primary aim is to earn profit and maximize it by…
Q: What is relationship between total revenue (TR) and cost (TC) if the price is greater than ATC (is…
A: If the price is greater than ATC, the total revenue (TR) is greater than the total cost (TC). The…
Q: Are condominiums considered imperfect competition or perfect competition in the market?
A: Market structures can be classified into four major categories. The following states the market…
Q: If Daniel sells 250 hamburgers at a price of $3.00, and his average cost of producing 250 hamburgers…
A: Profit is the difference between total revenue and total cost.
Q: According to the above Table. What is the profit maximising level of production for the competitive…
A: To solve this question you have to calculate marginal cost first.
Q: At what output rate does the firm maximize profit or minimize loss?
A: After marginal revenue exceeds marginal cost,at that output rate firms maximize profit.
Q: 1. Consider the following graph: Price (dollars per cup) $6.00 MC ATC 3.50 Profit 2.50 Demand 0 1 2…
A: Consider the graph given below:
Q: . Which is the other name that is given to the average revenue curve?
A: The average revenue curve represents the revenue per unit for different quantities of output.
Q: Why are abnormal profits of a firm difficult to sustain?
A: The abnormal profits under perfectly competitive market are difficult to sustain because of the free…
Q: 3. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The…
A: Total cost function is given to be as:-TC = a + bQ² We have the case of a perfectly competitive…
Q: Please solve all parts of the question based on graph and show your work.
A: We have the following information- The price of pizza per slice is given as $2.50.
Q: Question 1 Using graph, explain when the firm maximizes its profit under perfect completion?
A: In perfect competition, there are many producers in the industry which sell identical products.…
Q: Suppose that a small hair styling salon had revenues of $200,000 in a given year. The owner spent…
A: The economic profit is broader term and it considers the opportunity cost as well.
Q: With the aid of a diagram, explain the profit maximising rule and explain four reasons why firms aim…
A: Profit maximization is a rule in economics where marginal cost (MC) is equal to marginal revenue…
Q: Explain the difference between a firm's revenue and its profit. Which do firms maximize?
A: Revenue is the total amount received by selling the required units of goods or services. Profit is…
Q: Suppose that the market for candles is a competitive market. The following graph shows the daily…
A: Profit Maximization is defined as a process taken up by the firms to make sure that the best output…
Q: 5) Why is a firm willing to produce at a loss in the short run if the loss is no greater than the…
A: Costs refers to the amount of money involved in the production process to produce the goods and…
Q: a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: 4 In the market for running shoes, all the firms face a similar demand curve and have similar cost…
A: g. The relation between the shoe price and the output is indirect which implies that a rise in the…
Q: (b) Suppose that the price at which Sophie can sell readymade dress is $25 per dress: i. In the…
A: Shutdown point for a firm corresponds to the production point where the average revenue from…
Q: Define the Law of Diminishing Marginal Returns and giving a clear example, explain why this “Law” is…
A: Total production in a firm is measured by the total product. The total product is an elongated…
Q: (5) On your graph, indicate the supply curve of your firm in the short run.
A: Demand and supply In an economy there is always a demand for goods and services and the supply of…
c) what is the profit or loss at the profit maximizing output?
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- Please answer C with new equipment106,000cost isSub : EconomicsPls answerin 15 mins.Dnt CHATGPT.I ll upvote. Thank YouPlease no written by hand Acme, Inc. is currently producing 12,000 gadgets per year. Acme’s average total cost (ATC) is $18 per year. What is Acme’s total cost (TC) per year? a. $667 b. $108,000 c. $216,000 d. $500 e. $1500
- Sub : EconomicsPls answerin 15 mins if possible.Dnt CHATGPT.I ll upvote. Thank YouFarmer McDonald gives banjo lessons for $20 perhour. One day, he spends 10 hours planting $100worth of seeds on his farm. What total cost has heincurred?a. $100b. $200c. $300d. $400Please hep with this question ? That is attatched show how calcualtion was made thank you,
- No chatgpt answer pls i will give 10 upvotesMetters Cabinets, Inc., needs to choose a productionmethod for its new office shelf, the Maxistand. To help accomplishthis, the firm has gathered the following production cost data: PROCESS TYPE ANNUALIZEDFIXED COST OFPLANT & EQUIP. VARIABLE COSTS (PER UNIT) ($)LABOR MATERIAL ENERGY MassCustomization $1,260,000 30 18 12Intermittent $1,000,000 24 26 20Repetitive $1,625,000 28 15 12Continuous $1,960,000 25 15 10Metters Cabinets projects an annual demand of 24,000 units forthe Maxistand. The Maxistand will sell for $120 per unit. a) Which process type will maximize the annual profit from pro-ducing the Maxistand? b) What is the value of this annual profit?Good afternoon please help me with the calculation to for the attatched prodblem. Thank you in advance