Question

In: Economics

Determine the profit maximizing quantity and profit levels; and then graph (in general form) the outcomes...

Determine the profit maximizing quantity and profit levels; and then graph (in general form) the outcomes for the production function ( standard form with q(K,L) curve ) , cost/revenue functions (with MC, AC, and P curve/line) and profit function ( profit (q) curve ) for the following all graphs have to display q*: 1. C(q)=1000+q^2, P=10000 2. C(q)=1000+4q^3, P=10000 3. C(q)=1000+q^1.5, P=10000 4. Explain the differences between your outcomes and give a plausible reason for the difference between 1 & 2 and then for 1 & 3. Specifically: what changed, what didn't, what the effects are, and why.

Solutions

Expert Solution

Rahul Sunny answered 6 months ago
Next > < Previous

Related Solutions

What is the profit maximizing principle? Why is it used to determine the optimal quantity of...
What is the profit maximizing principle? Why is it used to determine the optimal quantity of a product or service to produce? What are the important costs for decision makers to consider? For example, should sunk costs be considered or opportunity costs or both? Consider a recent decision you made. Did you consider opportunity costs? Sunk costs? Both?
Calculate and graph the profit maximizing price and quantity in output markets (monopoly) ACME Electricity provides...
Calculate and graph the profit maximizing price and quantity in output markets (monopoly) ACME Electricity provides electricity service in a rural community as a monopolist with no competitors. The following Table 1 shows price per unit and total costs associated with various amounts of electricity (in 100 kilowatts blocks) in the short-run: Table 1: Quantity of Electricity (in 100 kilowatt blocks) Price (in dollars) Total Costs (in dollars) 0 $50.00 1 $25.00 $60.00 2 $24.00 $69.00 3 $23.00 $77.00 4...
Section 1: Using marginal analysis to determine the profit maximizing price and quantity of resources in...
Section 1: Using marginal analysis to determine the profit maximizing price and quantity of resources in a factor market under perfect Orange Inc. sells cell phones in a perfectly competitive market in the short-run. Capital and labor are two resource factors used to produce the cell phones. Capital is fixed in the short-run but labor can vary. The market for hiring labor is a perfectly competitive market. Labor is measured in worker weeks. Each worker week costs $700 of wages...
Question: Determine the profit maximizing price and quantity of resources in factor markets under perfect and...
Question: Determine the profit maximizing price and quantity of resources in factor markets under perfect and imperfect competition by use of marginal analysis. I understand that firms will maximize profit or minimize loss by producing the output where marginal revenue equals marginal cost; however, does that apply to perfect and imperfect? I just feel like the answer requires more than the firms desire for MR = MC.
In a monopoly market, how does the profit-maximizing quantity compare to revenue-maximizing quantity? How does the...
In a monopoly market, how does the profit-maximizing quantity compare to revenue-maximizing quantity? How does the profit-maximizing price compare to revenue-maximizing price? Why?
How do you determine the profit maximizing (loss minimizing)quantity for the perfectly competitive firm...
- How do you determine the profit maximizing (loss minimizing) quantity for the perfectly competitive firm to produce? - Assume a competitive market has firms earning large economic profits. What is expected to happen over time in this competitive market and to firm's profits? - Why is the demand curve facing a monopolist downward sloping while the demand curve facing a perfect competitor is horizontal? - How can a monopoly maintain its single-seller status?  
Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company.
4. How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or...
Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit...
Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit maximizing quantity? Explain why a monopoly can make economic losses. Will the monopoly exit the industry if it is making economic losses?
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with demand, marginal revenue, marginal cost, and average total cost curves. Find the point where MR = MC and go straight over to the price axis. Find the point where demand hits marginal cost and go straight over to the price axis. Find the point where MR = MC, go straight up until you hit the demand curve, and then go straight...
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with demand, marginal revenue, marginal cost, and average total cost curves. Find the point where MR = MC and go straight over to the price axis. Find the point where demand hits marginal cost and go straight over to the price axis. Find the point where MR = MC, go straight up until you hit the demand curve, and then go straight...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT