Microeconomics (6th Edition)
Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
Question
Book Icon
Chapter 13, Problem 13.2.4PA

Subpart (a):

To determine

Profit maximizing output and the marginal revenue at the level.

Subpart (b):

To determine

Profit maximizing output and the marginal revenue at the level.

Blurred answer
Students have asked these similar questions
Maria manages a​ bakery, that specializes in ciabatta​ bread, and has the following information on demand and​ costs:   Ciabatta Bread Sold Per Hour​ (Q) Price​ (P) Total Cost​ (TC) 0 ​$6.00 ​$1.50 1 5.50 6.00 2 5.00 9.50 3 4.50 12.50 4 4.00 15.00 5 3.50 17.00 6 3.00 18.50 7 2.50 20.50 8 2.00 23.50 a. To maximize​ profits, Maria should sell nothing loaves of ciabatta bread per hour. ​(Enter your response as an​ integer.)
The makers of Panax pain reliever do a lot of advertising and have very loyal customers. In contrast, the makers of generic paracetamol do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Panax and generic paracetamol are the same and constant. 1. Draw a diagram showing Panax’s demand, marginal revenue and marginal cost curves. Label Panax’s price and mark-up over marginal cost. 2. Repeat part (1) for a producer of generic paracetamol. How do the diagrams differ? Which company has the bigger mark-up? Explain. 3. What factors would affect the extent to which the makers of Panax could engage in predatory or destroyer pricing to force out competitors in this market?
Andrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. For each level of output, calculate total revenue, marginal revenue, average cost, marginal cost, and profits. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? Price Quantity TC MC AC TR MR Profit $25.00 0 $130  ---  ---       $24.00 10 $275           $23.00 20 $435           $22.50 30 $610           $22.00 40 $800           $21.60 50 $1,005           $21.20 60 $1,225
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Microeconomics A Contemporary Intro
Economics
ISBN:9781285635101
Author:MCEACHERN
Publisher:Cengage
Text book image
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Text book image
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning