Question

In: Economics

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. Enter your responses as whole numbers Cost Curves 3.60 3.25 3.00 2.75 250 225 200 MC ATC AVC 으 150 a 12 1.00 0.75 0.50 025 0.00 0 100 200 300 400 500 600 00 800 800 Quantity (slices/day) reset When the price is S0.50 per slice, the profi-maximizing level of output is At the profit-maximizing level of output, the producers profit is: S 225 slices per day. 150 per day.

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, the producer's profit is: $_______ per day.

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...
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...
11. Given the table below, what is the profit maximizing output for the producer in the short‑run?
  11. Given the table below, what is the profit maximizing output for the producer in the short‑run? Output - Total revenue - Total cost            1                    2.00                                     1.00            2                    4.00                                     1.50            3                    6.00                                     2.50            4                    8.00                                     4.50            5                   10.00                                    7.00         a. 1 unit      b. 2 units      c. 4 units      d. 5 units 12. A competitive firm can incur losses but continue to operate in the...
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?
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
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.
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?
Answer the following questions. Assume that the price of pizza is $1 per slice and the price of a large Pepsi is $2.
7. Use the following table to answer the questions below. Quantity Consumed                   Total Utility                    Total Utility      (per week)                            of Pizza                       of Pepsi             0                                         0                                     0             1                                     242                                 668             2                                     552                               1200             3                                     792                               1632             4                                     996                               2016             5                                 1176                               2316             6                                 1344                               2556             7                                 1506                               2712             8                                 1626                               2736             9                                 1728                               2664             10                                 1818                               2448 Answer the following questions. Assume that the price of pizza is $1 per slice and the price of a large Pepsi is $2.         Calculate the...
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