Question

In: Economics

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 over to the price axis.
Find the minimum point on the ATC curve and go straight over to the price axis.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

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...
Construct a graph illustrating the monopolist's profit-maximizing level of output and price. Use a straight-line demand...
Construct a graph illustrating the monopolist's profit-maximizing level of output and price. Use a straight-line demand curve, and show MR, MC, and ATC. On your graph, shade in the area that represents the monopolist's profit. Explain how to measure profit, and why this area shows profit. Suppose a monopolist can only charge a single price. On a new graph, illustrate the monopolist's profit, the consumer surplus, and the deadweight loss.
what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $0.50 per slice?
For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $0.50 per slice? Instructions: In the graph below, label all three curves by double-clicking on the ?? to select the appropriate label.When the price is S0.50 per slice, the profit-maximizing level of output is _______  slices per day.At the profit-maximizing level of output,...
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...
How do a competitive firm, monopolist and monopolistically competitive firm determine its profit-maximizing level of output...
How do a competitive firm, monopolist and monopolistically competitive firm determine its profit-maximizing level of output and price? Explain your answer.
answers plz 13) At a firm's profit-maximizing level of output, its price is $200 and its...
answers plz 13) At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm Group of answer choices should shut down if its short-run average fixed cost is less than $25. has a profit of $25 per unit of output. has a loss of $100 per unit of output. should shut down if its short-run average variable cost exceeds $25. 14) In long-run equilibrium under perfect competition, Group of answer...
For competitive firms, they set marginal cost equal to market price at profit-maximizing level of output....
For competitive firms, they set marginal cost equal to market price at profit-maximizing level of output. In the short run, marginal revenue curve faced by a competitive firm is downward-sloping. Competitive firms always produce a positive amount of output in the short run (q > 0). Competitive firms earn zero economic profit in the long run equilibrium. All these are True False Questions
1. How are the firms profit maximizing output and price determined in the short run? long...
1. How are the firms profit maximizing output and price determined in the short run? long run? 2. Are the firms demand curve and the industrys demand curve the same? why or why not? 3. What are the relationships among the different average costs and marginal costs in the short run and long run? 4. How are firms supply and the industrys supply curves determined in the short and long run?
What is the profit maximizing level of output for a firm with the marginal cost function MC
What is the profit maximizing level of output for a firm with the marginal cost function MC = 1.6Q2-15Q+60 and a marginal revenue function MR = 280-20Q?
Assume at the firm's profit-maximizing level of output, q, is such that P = AVC(q). In...
Assume at the firm's profit-maximizing level of output, q, is such that P = AVC(q). In this case, the firm will be: a. earning economic profit = 0. b. breaking even. c. incurring an economic loss. d. earning a positive economic profit.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT