Question
In: Economics
7. If the price searching firm depicted in the graph wanted to maximize its profits then it should produce__units.
USE THE GRAPH BELOW TO ANSWER THE NEXT 2 QUESTIONS.
7. If the price searching firm depicted in the graph wanted to maximize its profits then it should produce__units.
a. Q1 b. Q2 c. Q3 d. Q4
8. If the goal of the price-searching firm is to maximize revenues (instead of profit) then it should produce__ units.
a. Q1 b. Q2 c. Q3 d. Q4
Solutions
Expert Solution
QUESTION: 7
If the price searching firm wanted to maximize its profit then it should produce at
SOLUTION:
the option (a) will be correct here i.e., Q 1 units
To maximize the profit, a firm choose to produce at that level where MR= MC .
QUESTION: 8
If the goal of the price searching firm is to maximize its revenue ( instead of profit) then it should produce at
SOLUTION:
the option (a ) will be correct here i.e., Q1 units
For revenue maximization TR = P1 * Q1
Rahul Sunny answered 2 years agoRelated Solutions
7) In order to maximize profits, the firm should adjust its output level to that point...
7) In order to maximize profits, the firm should adjust its
output level to that point at which marginal
cost equals average revenue. This statement is true for
1. perfect competition
2. monopoly
3. monopolistic competition
4. oligopoly
A) 2 and 3
B) 2, 3, and 4
C) 1 and 3
D) 1 only
It is often assumed that the goal of the firm is to maximize profits for its...
It is often assumed that the goal of the firm is to maximize
profits for its owners, the shareholders. Is the firm’s goal of
profit maximization always in society’s best interests? Be sure to
defend your answer and cite your sources.
It is often assumed that the goal of the firm is to maximize profits for its...
It is often assumed that the goal of the firm is to maximize
profits for its owners, the shareholders. Is the firm’s goal of
profit maximization always in society’s best interests? Be sure to
defend your answer and cite your sources.
True or False with an explanation. 1. A firm should maximize its profits when unit costs...
True or False with an explanation.
1. A firm should maximize its profits when unit costs of
production are lowered to their minimum.
2. When marginal revenues are equal to marginal costs, a company
is at its profit maximizing level of output.
3. For a concert ticket you win for free with no resale value,
the marginal benefit of actually going to the concert must be at
least $150, if the next best activity costs $50, but you value it...
A perfectly competitive firm seeking to maximize its profits would want to maximize the difference between?
Question 1.A perfectly
competitive firm seeking to maximize its profits would want to
maximize the difference between?Select one:a. either a or d.b. its marginal
revenue and its marginal cost.c. its total revenue
and its total cost.d. its average revenue
and its average cost.e. its price and its
marginal cost.Question text 2.A profit-maximizing
monopolist sets?Select one:a. output where demand
equals average total cost.b. output where
marginal cost equals average revenue.c. output where
marginal cost equals marginal revenue.d. the product price
where...
A monopoly will maximize its profits and minimize its losses when A. Price of the product...
A monopoly will maximize its profits and minimize its losses
when
A. Price of the product = the Demand for the Product
B. MR=MC
C. MC=ATC
D. AVC = Marginal Revenue
In order to maximize profits, a firm that can sell all it wants without affecting price should produce Select one:
In order to maximize profits, a firm that can sell all it
wants without affecting price should produce Select one:a. where average variable costs are minimized.b. where marginal cost is equal to average variable costs.c. where marginal cost is equal to price.d. where marginal cost is a minimum.
A firm has hired you as an analyst to determine the quantity it should produce to maximize profits.
A firm has hired you as an analyst to determine the quantity it
should produce to maximize profits. Fill in the table, and provide
the quantity of goods the monopoly should produce to maximize
profit in the space below. Do NOT use commas to separate thousands.
Use a space if you'd like. (e.g. write 2000 or 2 000 instead of
2,000. Laulima uses periods and commas as decimal points, so
writing 2,000 makes Laulima think your answer is 2.000.)PriceQuantityTotal CostTotal...
. Economic environment is important to a firm’s ability to make profits. Every firm will maximize profits...
. Economic environment is important to a firm’s ability to make
profits. Every firm will maximize profits by operating
at the minimum point of its average total cost curve. Is this
statement true or false? Explain using diagrams for different
market models. Which market model necessitate this
condition?
Economic environment is important to a firm’s ability to make profits. Every firm will maximize profits...
Economic environment is important to a firm’s ability to make
profits. Every firm will maximize profits by operating at the
minimum point of its average total cost curve. Is this statement
true or false? Explain using diagrams for different market models.
Which market model necessitate this condition?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
ADVERTISEMENT