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.

Expert Solution

A perfectly competitive firm sells all its units of output at the constant price, which they take from the market. The price is determined by the market forces.

A perfectly comptetitive firm in order to maximize profit, produces at the point where marginal cost is equal to price.

Answer: Option (C)

Rahul Sunny answered 2 years ago

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...

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

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

If a firm can sell as much as it wants at the going price, and loses...

If a firm can sell as much as it wants at the going price, and loses its entire sales if it raises the price above the going price: Answers: a) its marginal revenue is greater than the price at each quantity sold. b) the average revenue curve is downsloping. c) the average revenue curve is horizontal. d) the demand curve is vertical.

1. A firm has market power if it can a. maximize profits.

1. A firm has market power if it cana. maximize profits.b. minimize costs.c. influence the market price of the good it sells.d. hire as many workers as it needs at the prevailing wage rate.2. Which of the following is not a characteristic of a competitive market?a. Buyers and sellers are price takers.b. Each firm sells a virtually identical product.c. Entry is limited.d. Each firm chooses an output level that maximizes profits.3. Suppose that a firm operating in perfectly competitive market...

Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints.

Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves.Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. Complete the first row of the following table. Suppose that the government forces the monopolist to set the price equal to marginal cost. Complete the second...

The primary goal of business strategy is to: Select one: a. Increase sales b. Maximize profits...

The primary goal of business strategy is to: Select one: a. Increase sales b. Maximize profits over the long term c. Balance the interests of competing shareholders d. All of the above

The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen?

The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen? How might agency costs get in the way? Explain

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing...

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing a price that is greater than their marginal cost. True False 20. As a consequence of the perfectly competitive firm producing the quantity of output at which: price equals marginal revenue and marginal cost, it will achieve "allocative efficiency" in the deployment of societies scarce resources. True False 21. In the "long-run," the perfect competitive achieves technical efficiency and the firm will produce at:...

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...

Question