"On a cost graph, take difference between the revenue rectangle(price times quantity) and the cost...

"On a cost graph, take difference between the revenue rectangle (price times quantity) and the cost rectangle (average cost times quantity). Then you can find the firm's profit"

what is revenue rectangle and cost rectangle?

Expert Solution

Rahul Sunny answered 2 years ago

For a monopolist, marginal revenue equals Multiple Choice Price. Price times quantity. The change in total...

For a monopolist, marginal revenue equals Multiple Choice Price. Price times quantity. The change in total revenue divided by the change in quantity. The change in quantity divided by the change in total revenue

Use the cost and revenue data to answer the questions. Quantity Price Total revenue Total cost...

Use the cost and revenue data to answer the questions. Quantity Price Total revenue Total cost 1010 9090 900900 675675 1515 8080 12001200 825825 2020 7070 14001400 10251025 2525 6060 15001500 12501250 3030 5050 15001500 15001500 3535 4040 14001400 18501850 If the firm is a monopoly, what is marginal revenue when quantity is 2525 ? MR = $ Not a valid number tools x10y What is marginal cost when quantity is 1515 ? MC = $ Not a valid number...

Complete the following cost and revenue schedule. Price Quantity Demanded Total Revenue Marginal Revenue Total...

Complete the following cost and revenue schedule. Price Quantity Demanded Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost 200 0 240 180 10 360 160 20 500 140 30 660 120 40 840 100 50 1040 80 60 1260 60 70 1500 40 80 1760 20 90 2040 a. At what rate of output are profits maximized within this range? b. What are total profits at that output rate?

The difference between total revenue and total cost is: marginal revenue. nominal revenue. average revenue. economic...

The difference between total revenue and total cost is: marginal revenue. nominal revenue. average revenue. economic profit or loss. Total revenue is a firm's: difference between revenue and cost. ratio of revenue to quantity. change in revenue resulting from a unit change in output. total output times the price of that output

Describe the difference between demand and quantity demanded? What is the difference between supply and quantity...

Describe the difference between demand and quantity demanded? What is the difference between supply and quantity supplied ? Describe the equilibrium.

The quantity demanded is 12 minus price, and the quantity supplies equals three times the price....

The quantity demanded is 12 minus price, and the quantity supplies equals three times the price. How much consumer surplus and producer surplus is there at equlibrium? What if the government were to impose an excise tax of four follars per unit? What would be the tax revenue and how large would the deadweight loss be?

16. Total profit for a firm is calculated as a. (price minus average cost) times quantity...

16. Total profit for a firm is calculated as a. (price minus average cost) times quantity of output. b. total revenue minus total cost. c. Both a and b. d. None of the above. 17. In the short run, if the price is less than average variable cost, a firm operating in a competitive market will a. shutdown. b. exit. c. increase the price. d. increase the quantity. 18. When a restaurant stays open for lunch service even though few...

A company has the following data: • Revenue (Price x Quantity) = $750,000 • Variable cost...

A company has the following data: • Revenue (Price x Quantity) = $750,000 • Variable cost per unit = $65 • Units sold (Quantity) = 5,000 • Total costs = $625,000 • The company has no semi-variable costs The company will open a new branch that will increase its fixed costs by $125,000. Determine the following: a) Price of each unit. b) Total variable cost. c) Total fixed costs before the new branch. d) Total fixed costs after the new...

Relationship between Price, Quantity Demanded and Quantity Supplied There is an inverse relationship between price of...

Relationship between Price, Quantity Demanded and Quantity Supplied There is an inverse relationship between price of a good and the quantity demanded and a direct relationship between the price of a good and the quantity supplied. For example, an increase in the price will cause a decrease in the quantity demanded and an increase in the quantity supplied. Choose a good or service and speculate how the quantity demanded or supplied will change with a given change in price. (Pick...

Suppose that a monopoly faces the demand, marginal revenue, and cost schedules below. Quantity Price Marginal...

Suppose that a monopoly faces the demand, marginal revenue, and cost schedules below. Quantity Price Marginal Revenue Marginal Cost Average Total Cost 1 230 230 100 150 2 210 190 100 125 3 190 150 100 116.6666667 4 170 110 100 112.5 5 150 70 100 110 6 130 30 100 108.3333333 7 110 -10 100 107.1428571 8 90 -50 100 106.25 9 70 -90 100 105.5555556 10 50 -130 100 105 What quantity maximizes profit? The monopoly Q =...

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