(a) profits will be maximized at a level of output of units, and (b) at this...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) profits will be maximized at a level of output of units, and (b) at this level of output, profits will be $_____. (Show your calculations.) (c) Is this firm operating in a perfectly competitive market? If this firm is in a perfectly competitive industry and is a typical firm which is making profits, what adjustment will occur in the price of the product, and how will this affect the profits of this typical firm? What will be the final equilibrium level of the price? 4. $25 20 15 10 200 400 600 Marginal cost per unit 800 Average cost per unit Average revenue ( Marginal revenue) per unit 1000 Output For the firm whose costs and revenues are shown in the graph above, (a) profits will be maximized at a level of output of units, and (b) at this level of output, profits will be $_____. (Show your calculations.) (c) Is this firm operating in a perfectly competitive market? If this firm is in a perfectly competitive industry and is a typical firm which is making profits, what adjustment will occur in the price of the product, and how will this affect the profits of this typical firm? What will be the final equilibrium level of the price? 4. $25 20 15 10 200 400 600 Marginal cost per unit 800 Average cost per unit Average revenue ( Marginal revenue) per unit 1000 Output For the firm whose costs and revenues are shown in the graph above,
Expert Answer:
Answer rating: 100% (QA)
a Profits will be maximized at a level of output of 600 units This can be identified at the point wh... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Which C++ construct is designed to implement ADTs? (p. 599) What distinguishes a class constructor from other member functions? (p. 601)
-
Leslie in as administrative manager with a number of exciting new ideas about how to change organizational procedures and run the company more efficiently. However, she soon ran into opposition from...
-
Consider the following problem max c+C2x2 - 45x3 x1,x2, x3 s.t. a11x112x2 + a13x3 b, a21x1a22x2 + a23x3
-
The IQ and VIQ are tools insurance producers use to learn more about internal assumptions regarding factors that ultimately control policy performance. They have information in all of the following...
-
In yeast, the ad mutation requires adenine for growth, and the in mutation requires inositol for growth. The wild-type alleles of these two mutations are AD and IN. C. C. Lindegren analyzed 48...
-
Do you expect the viscosity of glycerol, C3H5(OH)3, to be larger or smaller than that of 1-propanol, C3H7OH? Explain? (a) Glycerol (b) 1-Propanol
-
Payables are: a. Customers who pay cash b. Customers who owe money to the business c. Suppliers who are owed money by the business d. Suppliers who have been paid by the business
-
Allied Corporation has one temporary difference at the end of 2014 that will reverse and cause deductible amounts of $40,000 in 2015, and $70,000 in 2016. Allieds pretax financial income for 2014 is...
-
! Required information Part 1 of 4 [The following information applies to the questions displayed below.) 66 oints On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner...
-
Monica wishes to assess whether she should invest in both or only one of the investments listed below. Her required annual rate of return is 8%. What would you recommend to Monica? Investment Q...
-
Uber Ventures is formed with Alice contributing $95,000 in cash and $55,000 worth of equipment, and Bob contributing $70,000 in cash and $40,000 worth of inventory. Prepare a comprehensive balance...
-
How do internal structural inefficiencies and bureaucratic entanglements impede the adaptability and resilience of organizations operating within complex socio-economic landscapes ?
-
Last month 2 7 , 0 0 0 direct labor hours were worked at an actual cost of $ 2 3 6 , 3 8 5 and the standard direct labor hours of production were 2 9 , 8 8 0 . The standard direct labor cost per hour...
-
What is not considered a key component of investment strategy process?
-
How do structural deficiencies and systemic inefficiencies manifest within the context of organizational decline in technologically-driven industries ?
-
Prepare the entries necessary to record the transactions below. Morgan requires that dance instruction be paid in advance either monthly or quarterly. On January 1 , Morgan received $ 4 , 1 5 5 for...
-
Required information [The following information applies to the questions displayed below] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future...
-
At 31 December 20X9, the end of the annual reporting period, the accounts of Huron Company showed the following: a. Sales revenue for 20X9, $ 2,950,000, of which one- quarter was on credit. b....
-
Sue consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of...
-
Suppose the messiness of apartments is measured on a scale from 0 to 100, with 0 the cleanest and 100 the messiest. Suppose also that the distribution of apartments by messiness is as shown in the...
-
The Philadelphia Police Department must decide how to allocate police officers between West Philadelphia and Center City. Measured in arrests per hour, the average product, total product, and...
-
October 20X1, Little Raven plc issued 50,000 debentures, with a par value of 100 each, to investors at 80 each.The debentures are redeemable at par on 30 September 20X6 and have a coupon rate of 6%,...
-
On 1 October year 1, RPS plc issued one million 1 5% redeemable preference shares. The shares were issued at a discount of 50,000 and are due to be redeemed on 30 September Year 5. Dividends are paid...
-
(a) Who are considered to be the potential users of financial reports? (b) What do you consider to be their information needs? (c) How would you expect a consideration of user needs to influence...
Study smarter with the SolutionInn App