Using the revenue function given in the earlier question above, at an interest rate of 25%, if the firm makes it optimal choice, then its total profit would be? Revenue equal to $4.7k^0.5
A) 4.4
B) 4.85
C) 5.33
D) 5.75
previous question:
A firm uses capital, K, to produce revenue. The revenue function is given as Revenue = $4.7K0.5. If the interest rate is currently 21%, what is optimal K for the firm to choose?
Group of answer choices
2
3
4
5
In: Economics
Received a cash advance of $3500 from a client for the tax consultancy services to be performed in the next three months. The journal entry to record the transaction is:
Select one:
a. debit, service revenue $3500 and credit, cash $3500.
b. debit, service revenue received in advance $3500 and credit, cash $3500.
c. debit, cash $3500 and credit, service revenue received in advance $3500.
d. debit, service revenue received in advance $3500 and credit, service revenue $3500.
In: Accounting
1: If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the following is true?
a. None of the other options are correct.
b. The total revenue curve will become steeper, with an increase in slope on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
c. The total revenue curve will reach its maximum at a new, higher output than under the old price, P0, and total revenue would decline for further increases in output.
d. There will be no change to the total revenue curve of this individual firm.
e The total revenue curve will shift up vertically on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
2: A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where:
a. Average total cost is just tangent to marginal revenue
b. Marginal cost is equal to marginal revenue at a level greater than average variable cost
c. Marginal cost is equal to marginal revenue at a level greater than average variable cost AND average total cost is just tangent to marginal revenue
d. Marginal revenue exceeds average total cost
e. Marginal cost is minimized
In: Economics
1
If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the following is true?
a. None of the other options are correct.
b. The total revenue curve will become steeper, with an increase in slope on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
c. The total revenue curve will reach its maximum at a new, higher output than under the old price, P0, and total revenue would decline for further increases in output.
d. There will be no change to the total revenue curve of this individual firm.
e The total revenue curve will shift up vertically on the graph, with dollars on the vertical axis and firm quantity on the horizontal axis.
2
A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where:
a. Average total cost is just tangent to marginal revenue
b. Marginal cost is equal to marginal revenue at a level greater than average variable cost
c. Marginal cost is equal to marginal revenue at a level greater than average variable cost AND average total cost is just tangent to marginal revenue
d. Marginal revenue exceeds average total cost
e. Marginal cost is minimized
In: Economics
When price elasticity of demand is equal to unity, a small decrease in price:
increases total revenue.
decreases total revenue.
has no effect on revenues.
raises marginal revenue.
In: Economics
PURE MONOPOLY
IN-CLASS WORKSHEET 1
This question examines the pure monopoly market for wonky widgets. You will use a market demand curve to identify the maximum willingness to pay by consumers for different quantities of wonky widgets, the total revenue associated with selling a particular quantity, and the marginal revenue earned from each unit.
Wonky Widgets are produced and sold by a single firm, Walter’s Wonky Widgets. The monopolist faces a market demand characterized by the function:
P = 10 − 2Q
where Q is the number of wonky widgets that the monopolist produces and sells, and P represents consumers’ maximum willingness to pay for a particular quantity. The table below will help you identify and organize different relationships between quantity, price, total revenue, and marginal revenue.
Quantity (widgets) | Price (dollars) | Total Revenue (dollars) | Marginal Revenue (dollars) |
0 | ----- | ||
1 | |||
2 | $6 | ||
3 | $12 | $0 | |
4 | $2 | ||
5 | −8 |
Task 1: In the table above, identify consumers’ maximum willingness to pay for each quantity of widgets and fill in all blank cells in the “Price” column. You can find these values by plugging different quantities into the demand function above.
Task 2: In the table above, identify the total revenue that Walter’s Wonky Widgets earns when it produces and sells each quantity of widgets and fill in all blank cells in the “Total Revenue” column. Hint: Remember that Total Revenue = Price x Quantity.
Task 3: In the table above, identify the marginal revenue that Walter’s Wonky Widgets earns when it produces and sells each quantity of widgets and fill in all blank cells in the “Marginal Revenue” column. Hint: Remember that marginal revenue is the change in total revenue associated with producing each additional unit of output.
In: Economics
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
In: Economics
pls carefully review
Choose the correct statement.
A. The change in total revenue that arises from a price change is independent of the price elasticity of demand.
B. A rise in price decreases total revenue.
C. A rise in price increases total revenue.
D. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold.
In: Economics
Rental receipts for the period July 1, 2013, through June 30, 2014, were collected on June 30, 2013. The effects of these economic events on the 2013 financial statements for unearned revenue and rent revenue are ?
| Unearned Revenue | Rent Revenue | |
| I. | Increase | Increase |
| II. | Increase | Decrease |
| III. | Decrease | No effect |
| IV. | Decrease | Increase |
In: Accounting
Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,150. Fragmental collected the entire $9,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:
Multiple Choice
A debit to Rent Revenue and a credit to Cash for $3,450.
A debit to Rent Revenue and a credit to Unearned Rent for $3,450.
A debit to Cash and a credit to Rent Revenue for $9,200.
A debit to Unearned Rent and a credit to Rent Revenue for $3,450.
A debit to Unearned Rent and a credit to Rent Revenue for $5,750
In: Accounting