Given a diagram for a competitive firm, price or marginal revenue, be able to determine the...

Given a diagram for a competitive firm, price or marginal revenue, be able to determine the profit maximizing quantity. Given the profit maximizing quantity, ATC and AVC, be able to determine how much the firm would lose if they were to produce versus shut-down. Lastly, state whether the firm should produce or shut down.

Expert Solution

Rahul Sunny answered 2 years ago

How is market price, average revenue and marginal revenue related for a perfectly competitive firm and...

How is market price, average revenue and marginal revenue related for a perfectly competitive firm and why?

1- For a perfectly competitive firm, marginal revenue: is less than price. is equal to price....

1- For a perfectly competitive firm, marginal revenue: is less than price. is equal to price. decreases as the firm increases output. is greater than price. 2-Which of the following are characteristics of a monopoly market structure? In a monopoly, there is only one firm in the industry. no close substitutes are available. firm(s) have little to no price-setting power. there are low barriers to entry into the market. 3-You own a small deli that sells sandwiches, salads, and soup....

Marginal revenue for a firm in a competitive market is constant, but this is not the...

Marginal revenue for a firm in a competitive market is constant, but this is not the case for a monopolist. So, the marginal revenue of a monopolist might change for different quantities of production. Please explain why.

8) For a perfectly competitive firm, marginal revenue is

8) For a perfectly competitive firm, marginal revenue isA) equal to the price.B) less than the price.C) undefined because the firm's demand curve is horizontal.D) greater than the price.and10) A perfectly competitive firm will maximize profit when the quantity produced is such that theA) firm's marginal revenue is equal to its marginal cost.B) price exceeds the firm's marginal cost by as much as possible.C) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.D) firm's total revenue is...

For a perfectly competitive firm, marginal revenue is identical to Select one: a. a and c...

For a perfectly competitive firm, marginal revenue is identical to Select one: a. a and c above b. marginal cost at every quantity. c. all of the above d. average cost at every quantity. e. price at every quantity. (wrong)

If referencing a perfectly competitive firm: Marginal Revenue (MR) = marginal costs (MC) at 1,000 units...

If referencing a perfectly competitive firm: Marginal Revenue (MR) = marginal costs (MC) at 1,000 units of production. The price per unit of the product is $22 at this output. The TOTAL FIXED COSTS (TFC) at this output=$10,000. AVERAGE TOTAL COSTS (ATC) = $25 per unit at this output. 1) Should the firm continue to produce at this output? Why or why not? 2) What is the total profit or loss at this level of production? Show calculation.

A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist...

A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist maximizes profit at the point where marginal revenue exceeds marginal cost. true or false Price discrimination is a rational strategy for a profit-maximizing monopolist when there is no opportunity for customers to engage in arbitrage across market segmentations true or false When regulating a monopoly with average cost pricing, the monopoly is able to enjoy a zero economic profit and the deadweight loss of...

Why is the marginal revenue curve for a perfectly competitive firm the same as its demand...

Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

5. Answer the following on marginal revenue. a. Suppose a firm operates in a perfectly competitive...

5. Answer the following on marginal revenue. a. Suppose a firm operates in a perfectly competitive market where the market price is $100. What is the marginal revenue for selling an additional unit for this firm? Please explain how the marginal revenue compares to price. b. Suppose a firm operates in monopolistically competitive market where it sells 5 units at a price of $30 per unit. If it lowers its price to$29, it sells 6 units. What is the marginal...

In a monopolistic competitive firm explain why demand isnt the same to the marginal revenue

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