Why More Sales Don't Always Mean More Profit?

Q: In the long run

A: In the long run firms get more power to change inputs.

Q: Price Quantity Marginal Cost 60 1 30 55 2 30 50 30 45 4 30 40 30 35 30

A: A profit maximizing firm should produce up to that level of output where price = marginal cost. If…

Q: What is quality? Could you explain the relationship between cost and quality

A: In an economy, there are various sellers. Each seller offers a product that has a certain level of…

Q: Information  about Competitive market

A: Perfect Competition(PC) is the structure of a market where all the producers produce similar and…

Q: What is the goal of a firm?

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: Do higher costs mean higher prices?

A: In economics, cost is a monetary value that is incurred in order to produce goods and services for…

Q: What is the profit motive

A: Profit Motive: It is the firm's motivation that persuades the firm to earn more profit. The profit…

Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?

A: Given that the market structure is monopolistic competition, the profit maximizing condition is  MC=…

Q: What is the cost revenue? Explain with example?

A: Cost revenue is the total expenditure of producing and delivering a product or service to customers.…

Q: Explain the relationship between quality and costs in your own words. How does improving quality…

A: We know that The expenses that are being incurred by individuals or businesses for carrying out…

Q: Why can't firms enter the market in the short-run?

A: There are various types of market structures which have different characteristics of the number of…

Q: Can you give some answers to the factors that affect the supply and demand in the restaurant…

A: Demand is the total quantity of goods or services demanded by people in the economy at the going…

Q: In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it…

A: Monopolistic competition refers to a market structure in which many firms sell differentiated…

Q: Discuss the factors that led to the consumer movement and list some of its results.

A: The consumer movement refers to a social movement, led by consumer organisation to ensure protection…

Q: If the firm is minimizing cost it must also be maximizing profit. Agree or Disagree? Why?

A: Firms operating in a market incurs fixed costs and variable costs. Fixed costs do not change when…

Q: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

Q: Explain transaction costs?

A: Costs are the components that are included in the firm’s overall functioning wherein the firms in…

Q: Describe the procedure of Gauging Product Cost and Price?

A: The cost of production of a good or service is the aggregate value of the investment made by a…

Q: Services are products people buy. O True O False

A: Goods are the things that are tangible goods usually not always. For example: books, clothes, food…

Q: What is marginal revenue and marginal cost?

A: Marginal cost and marginal revenues are main concepts that determine th optimal output of the firm.

Q: If you're a manager in a highly competitive business such where should you put your most effort to…

A: As a manager ,the primary responsibility is to look in the profits of the business. Business can be…

Q: When will a business shut-down in the short-run?

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

Q: Why do more sales in not equal more profit

A: An expansion in deals/sales doesn't generally prompt an increment in benefit.  Most organizations…

Q: If Fernando can produce pizzas at a constant cost of $5 per pizza, how many pizzas does he produce,…

A:

Q: How many units should the firm produce to maximize profit?

A: Profit is maximized at the output level, for for which MR = MC.

Q: What products will your product compete against? Are there any similar products out there? Name and…

A: Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: How do you determine if a firm is profit maximizing?

A: A firm is profit maximizing if the firms total cost is less than is total revenue(TR = TC). We can…

Q: Imagine that you own your business. a) Think about your production process. Please explain the…

A: I own the business of making robots. a)In the production process of robots,my firm uses advanced…

Q: What is profit maximizing output?

A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…

Q: How do we measure the Profit Margin on Sales?

A: Profit margin is a type of profitability ratio that represents the percentage of sales that have…

Q: What is Profit Maximization?

A: Profit maximization is the process (or method) by which rational economic agents decide their…

Q: A restaurant should not stay open for an additional hour if it's _exceeds_ a) average benefit;…

A: Firms produce goods and services and try to maximize their profits by analyzing the market…

Q: Can you give examples of companies with perfect competition?

A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…

Q: Dave's Donuts sold 1,000 donuts. Total revenue was $400, and the cost of producing the 1,000 donuts…

A: The amount of money received by businesses from the sale of their products is referred to as total…

Q: Long-Term Competitiveness?

A: Competitiveness is the quality of being as good or better than others in the market. When there are…

Q: Explain profit ?

A: The average sales price multiplied by the number of units sold equals revenue. Net income is…

Q: What kind of business is a travel agency? What problems are solved with the help of a travel agency…

A: 1. A travel agency is a private merchant or government agency that offers tourism and travel related…

Q: How does a change in the response rate affect profit?

A: A response rate refers to a rate that shows the number of people or participants who have responded…

Q: What yardstick can a firm use to determine where it should produce?

A: To determine the level at which the firm should produce.

Q: What is the goal of the Multitasking machine?

A: Multitask machining is the ability to conduct specific unattended manufacturing operations, without…

Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…

A: At break even, total revenue is equals to total cost.