Represent, on a clearly labelled graph, the point(s) of short-run profit maximization for a firm with...

Represent, on a clearly labelled graph, the point(s) of short-run profit maximization for a firm with production technology given by y=f(x1,x2) where x2 is assumed to be fixed. USING ISO COSTS

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Rahul Sunny answered 2 years ago

Q3) Explain, with the aid of graph(s), why profit maximization for a firm is a perfectly...

Q3) Explain, with the aid of graph(s), why profit maximization for a firm is a perfectly competitive market implies that the short-run shutdown point is at the quantity where p=AVC(q).

What makes a business successful in monopolistic competition? Provide a short-run profit graph and long-run profit...

What makes a business successful in monopolistic competition? Provide a short-run profit graph and long-run profit graph.

1. 1. Discuss the conditions for profit maximization for the perfectly competitive firm in the short...

1. 1. Discuss the conditions for profit maximization for the perfectly competitive firm in the short run. In addition to the basic criteria, describe the cost and revenue situations on either side and why, in terms of cost and revenue, the firm will move toward that optimal point. Consider an avocado farmer operating as such a firm. He owns four acres of land on which to plant a single crop. To plant one acre of avocados, he must pay $30...

Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company.

4. How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or...

Profit maximization does not adequately describe the goal of the firm because I. profit maximization does...

Profit maximization does not adequately describe the goal of the firm because I. profit maximization does not require the consideration of risk II. profit maximization considers the timing of a project's return III. maximization of dividend payout ratio is a better description of the goal of a firm IV. both I and II V. None of the above Which of the following goals of the firm are synonymous (equivalent) to the maximization of shareholder wealth? I. profit maximization II....

1. Modeling Questions – Cost Functions and Profit Maximization A perfect competitive firm’s short-run cost function...

1. Modeling Questions – Cost Functions and Profit Maximization A perfect competitive firm’s short-run cost function is estimated to be Cy=10+18 y-4y2+0.6y3 , where y is the output, C(y) is the total cost. a.(2’) What is the firm’s short-run fixed cost? b.(2’) What is the firm’s short-run variable cost function? c.(12’) Derive the functions of MC, AVC, AFC, and AC. d Carefully graph your functions in the following combinations: TC, FC, and VC vs. y on a single...

1. Draw a graph of a monopolistically competitive firm that is currently earning a short run...

1. Draw a graph of a monopolistically competitive firm that is currently earning a short run profit. Be sure to include marginal revenue, demand, marginal cost and average total cost curves. What will happen to this firm as it enters the long run? 1b. What would you expect to happen to these initial firms as more and more pubs begin branching out into other markets? Multiple Choice/True False Questions: 1. The fact that pubs are now competing with firms like...

28. Suppose that a monopolistically competitive firm has an economic profit in the short run. in...

28. Suppose that a monopolistically competitive firm has an economic profit in the short run. in the long run, its economic profit will be zero. In the transition from short run to long run, which curve moved which way? Group of answer choices The ATC curve shifted down. The demand curve shifted left. The ATC curve shifted up. The demand curve shifted right. 29. The criterion for efficiency from the firm perspective is if the firm minimizes _______. The criterion...

A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...

A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed costs of D $2,250 and total variable costs (TVC) as is below. The firm can only produce integer amounts of output (Q): Q (Output) TVC (Total Variable Cost 0 0.00 1 2,500 2 4,000 3 5,000 4 6,200 5 7,600 6 9,360 7 11,500 8 13,860 9 16,450 10 19,200 11 22,310 3a. How much output should the firm produce if it can sell...

1. The Profit-maximizing Level of output for a perfectly competitive firm in the short run occurs...

1. The Profit-maximizing Level of output for a perfectly competitive firm in the short run occurs where: a. marginal revenue equals price B. Total revenue equals total cost C.marginal cost equals price D. Average revenue equals average total cost 2. Marginal revenue is a firms: A. Ratio of the change in total revenue to change in output. B. Profit per unit times the number of units sold C. Ratio of average revenue to total revenue D. Increase in profit when...

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