Why firm operates in the market adopting a marginal thinking(i.e. produce at MR=MC). Why do not they take a holistic thought for profit maximization?
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- Soft drink industry has been historically profitable why? compare the economies of the concentrate business to the economics of the bottling business. Why do you think the profitability is so different between these businesses?What is the different between monoply profit and perfect competitive profit?Show them in grapphical ilustrations.The vast majority of industries are probably not perfectlycompetitive. Why then do you suppose economics coursesemphasize the study of perfect competition as much as they do?
- For the Statement at the end, there are drop down arrows and options for you to choose from, and values to fill in. Drop down options will be listen in brackets, and blanks are values that must be found. Simone's profit is maximized when she produces _______shirts. When she does this, the marginal cost of the last shirt she produces is $_______ , which is (greater/less) than the price Simone receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt over the amount that would maximize her profit) is ________, which is (greater/less) than the price Simone receives for each shirt she sells. Therefore, Simone's profit-maximizing quantity corresponds to the intersection of the (marginal cost and marginal revenue/ total cost and profit/ total cost and total revenue/ marginal cost and total revenue/ total revenue and profit/ total cost and marginal revenue) curves. Because Simone is a price taker, this last condition can also be…Following is Ahmed’s competitively firm data and solve all the parts and subparts: Output (Q) Total Cost Total Revenue 0 62 0 30 90 40 60 110 80 90 126 120 120 138 160 150 150 200 180 165 240 210 190 280 240 230 320 270 296 360 a. Find the profit maximizing output. b. Find: a. FC b. VC c. ATC d. AFC e. AVC f. MC c. Find the efficient scale of output. d. Draw all the curves for the variables in part b using two-dimensional space.Assuming that the market for cigarettes is in perfect competition, what do allocative and productive efficiency imply in this case? What do they not imply?
- You are running a chocolate factory and need to decide on the price to sell the chocolate as well as the quantity to produce. Demand curve; Q = 8.5 - 0.05 * P. The cost curve is C = 100 + 38Q. The business is a profit maximizer. 1) What is the best price to charge each week? 2) What is the best quantity to make each week? 3) What are the expected profits Is it possible to get this in an excel with equation formulasShow that for a proit-maximizing firm producing at its optimal quantity, y, its average total costis minimized when marginal cost is equal to average total cost. Some tips to get you started:Are the products different?-perfect/pure competition
- Two firms are producing identical products, and the marginal cost is fixed at MC = 20. The firms choose prices sequentially. Firm 1, the ”leader”, moves first and chooses price p1. Firm 2, the ”follower”, observes p1 and chooses price p2. There are 100 consumers. All of them will buy from the fifirm with lower price. If the prices are equal, 50 consumers buy from firm 1, and 50 consumers from firm (a) If p1 = 50, what is follower’s best reply? (b) Specify follower’s best reply for any value of p1. (c) Given the follower’s best reply, what price should the leader set to maximize its payoff?Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?Acccounting profit is greater than economic profit , please explain the statement with hand drawn diagram fully.
