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.
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
Rahul Sunny answered 2 years agoRelated 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.
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