Answered: Which of the following equations…

Which of the following equations calculates the profits of a firm? O A. Total revenues - Fixed costs OB. Total costs - Fixed costs OC. Total revenues - Total costs O D. Total revenues + Total costs

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...

See similar textbooks

Related questions

Q: Macmillan Learning Classify the statements about growth as true or false. If a statement is an…

A: Growth is defined as the increase in national production of goods and services. Growth is calculated…

Q: Use the provided table to answer the following questions: Cowhide 0 8 16 24 Panem Ostrich pillow 12…

A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…

Q: Suppose Hong Kong's money supply data as at 31 Dec 2016 and 31 Dec 2017 were as follows: Total legal…

A: M1: Includes cash (coins, paper money) and demand deposits (checking accounts) - the most liquid…

Q: 1. What will happen in the market for wine if the price of cheese increases (wine and cheese are…

A: Market equilibrium: At the market equilibrium demand equals supply. Or at market equilibrium point…

Q: Of the following examples, which is an example of an automatic fiscal policy stabilizer? Congress…

A: A nation's fiscal policy framework includes an automatic stabilizer that adapts to changes in the…

Q: $8 (a) Jill's Demand Jill's demand 10 Quantity 15 O A. The construction of market demand for an…

A: Public Good: Public goods are those goods which have non-rivalrous (if someone consumes that good,…

Q: The Policy Trilemma states that a country or a monetary union cannot pursue the following three…

A: This can be described as a situation in the economy in which the value of the domestic currency in…

Q: As a result we can conclude that the a. income decreased. b. income increased. c. income stayed the…

A: This can be defined as a concept that shows the graphical representation of the capability of the…

Q: uestion Completion Status: QUESTION 17 A country has a net capital outflow of $200 quantity of…

A: Loanable funds: Loanable funds are the funds that are available to be borrowed in the economy. They…

Q: Figure 5.16 Circular Flow Model W GDP B T GOV B LF R T S X FE H M ΤΡΑ

A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…

Q: Suppose Hong Kong's money supply data as at 31 Dec 2016 and 31 Dec 2017 were as follows: 31 Dec 2017…

A: M1: Includes cash (coins, paper money) and demand deposits (checking accounts) - the most liquid…

Q: The convergence to a steady-state capital-labour ratio k* is ensured by the fact that if k is at a…

A: The issue you raised has to do with "Economic Growth" and more specifically, economic growth models…

Q: Wilbur's economic profit is $ a day. >>> If the firm incurs an economic loss, indicate the loss with…

A: Since you have posted a question with multiple subparts, we will provide the solution to only the…

Q: a. PRICE b. 8 Select one: C. 2 1 Refer to Figure 6-6. When a certain price control is imposed on…

A: A price ceiling is the price set by the government which is the maximum that should be charged from…

Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…

A: In perfect competition, There exists a large number of buyers and sellers. The firm produces where…

Q: Jill and Jack both have two pails that can be used to carry water down from a hill. Each makes only…

A: Game theory is a branch of mathematics that studies decision-making in situations where two or more…

Q: Refer to Figure: Fiscal Policy I. Suppose that this economy is in equilibrium at E2. If there is a…

A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…

Q: Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs…

A: Lets analyze the question.

Q: Which of the following is NOT a benefit from trade? O a. the ability to specialize O b. an increase…

A: Trade benefits nations by enhancing specialization, offering diverse products, lowering prices…

Q: The AD/AS graph illustrates an inflationary gap when the equilibrium level of real GDP is…

A: This can be defined as a concept that shows the total amount of commodities and the services…

Q: ollowing figure, graph (a) depicts the linear marginal cost (MC) of a firm in a competitive market,…

A: A perfectly competitive market has large number of identical firms.Each firm in competitive market…

Q: If a neoclassical model shows increasing wages growing faster than productivity in the economy over…

A: The neoclassical theory of wages predicts that wages will rise when the demand for labor is greater…

Q: Refer to the figure below, which shows the market for a specific good. What will be the result if…

A: Market dynamics involve the fluid interplay between supply and demand, pricing variations, and…

Q: Controls are the measures that governments put in place to deal with overspending Select one: • True…

A: The questions you gave concern several subjects, such as budgeting, organizational culture, and…

Q: 1. Analyze contemporary issues affecting economic development in Trinidad and Tobago re Natural…

A: To comprehend the opportunities and constraints for economic development encountered by Caribbean…

Q: 17) The demand curve for tickets to the George Winston concert (with special guest star, Kenny G) is…

A: Consumer Surplus: Consumer surplus is the net benefit that the consumer receives by purchasing…

Q: If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, 4 he will…

A: A perfectly competitive firm is the one in which there are a large no of sellers in the market. As…

Q: 3. Assume that there are three commodities with amounts ₁, 2 and 3 and prices P₁, P2 and p3. Assume…

A: Utility maximization's idea is that the consumers wish to allocate their money income or endowment…

Q: Select the number of the question and the letter to indicate the answer you consider correct for…

A: The law of demand states that, all else being equal, when the price of a good or service decreases,…

Q: People are more likely to purchase a consumer ratings magazine that reviews new automobiles before…

A: Asymmetric Information: Asymmetric information refers to a situation where one party in a…

Q: Gross Private Domestic Investment $ 1,593 Personal Taxes 1,113 Transfer Payments 1,683 Taxes on…

A: Gross Private Domestic Investment: $1,593 billionPersonal Taxes: $1,113 billionTransfer Payments:…

Q: 08. Which of the following could have caused a shift of the Aggregate Expenditures curve from AE1 to…

A: The correct answer is (c), an improvement in consumer confidence.Consumer spending increases when…

Q: If the monopoly firm's marginal cost curve is either horizontal or upward sloping, it follows that…

A: The Marginal cost (MC) refers to the change in the total cost when one additional unit of good is…

Q: Point D in Figure 1.3 represents: a. an inefficient use of resources. Ob. full employment. c. a…

A: A production possibility curve shows combination of two goods that can be produced by using…

Q: 7. Refer to Figure 2.1.2. The price of coffee is currently $6.00. and quantity demanded is 7 million…

A: Shift in the demand curve: When the demand for the good changes due all factors other than price,…

Q: Mr. Scoobertini owns a store specializing in soccer jerseys. In 2008, he purchased $150,000 worth of…

A: Gross Domestic Product or GDP refers to the sum total of the market value of final goods and…

Q: True or False: a non-price discriminating monopoly that is operating at the profit-maximizing…

A: A cartel is an association of rival businesses to restrict competition by deciding on pricing,…

Q: F Given Cost and Revenue functions C(q)=q³-8q² + 59q+ 5000 and R(q) = -3 -39² +2600q, what cost is…

A: Marginal profit is calculated as the change in profit due to change in quantity. Marginal Profit is…

Q: Which of the following statements is correct? A Buyers determine supply, and sellers determine…

A: Demand refers to the quantity of goods or services that a consumer is willing and able to buy at a…

Q: The principle of a Nash Equilibrium can be summarized as "Structure the law so as to remove the…

A: The game theory notion of Nash Equilibrium is focused on the actions of rational actors in strategic…

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: qor Q 2. Draw a supply and demand curve for gasoline in Petaluma, CA Assume that the equilibrium…

A: Market demand curve for a commodity can shift as a result of a change in consumers income, their…

Q: Refer to the diagram to the right which shows various points on three different production…

A: The production possibility curve represents the combination of the two commodities in the market. It…

Q: Given a demand curve of P = 112 - 9Qd and supply of P = 2 + 5Qs, find the price elasticity of demand…

A: The price elasticity of demand measures the degree of responsiveness of demand to change in the…

Q: Problem 1. The table shows for each province the number of hours required to produc of two products.…

A: The Comparative advantage is refers to the ability to produce goods more efficiently relative to…

Q: 7) Use this graph to answer the following question: Pe Pe A B C C) A+B+C-E D) E+F E) E-C D E F S D…

A: Consumer surplus is considered as an economic expression to identify the overall benefit received by…

Q: In the diagram below, P₂ Po P A C D J C' vä P' Q₂ Q₁ S* S A per unit tax has been imposed on the…

A: Tax is defined as a mandatory payment made to the government by the citizens of the country. Tax…

Q: B Market A 0 400 800 1200 Quantity S D a S 8.00- 7.60- 7.20 6.80 6.40 0 Market B 400 800 1200…

A: Minimum-wage is the government imposed minimum wage set for labor in the labor market. The minimum…

Q: suppose you are given a data where prices don't change. product X assuming income range of 10000 to…

A: Income elasticity is calculated as the percentage change in quantity divided by the percentage…

Q: 4. Which of the following most appropriately illustrate the law of supply? a. Corporation XYZ has…

A: When all other variables are held constant, the relationship between the price of an item or service…

Question

Which of the following equations calculates the profits of a firm?
O A. Total revenues - Fixed costs
OB.
Total costs - Fixed costs
OC. Total revenues - Total costs
O D. Total revenues + Total costs

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Profit

VIEW

Step 2: Choose the correct option

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the money, it would have of pay 8 interest on the loan, but it currently has the cash, so it will But need to borrow. Should the firm make line investment? Show your work.
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What is the difference between fixed costs and variable costs?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
How does fixed cost affect marginal cost? Why is this relationship important?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
What is die difference between accounting and economic profit?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?