In Figure 6.5, what rate of output (a) Maximizes total revenue? (b) Maximizes profit per unit? (c)
Question:
In Figure 6.5, what rate of output
(a) Maximizes total revenue?
(b) Maximizes profit per unit?
(c) Maximizes total profit? (Choose the higher level of output.)
Transcribed Image Text:
$18 Marginal cost 16 p = MC Profits decreasing (p < MC) 14 Price 12 Profits increasing (p > MC) 10 Profit-maximizing rate of output 4 МCв 2 3 4 5 6. QUANTITY (baskets of fish per hour) PRICE OR COST (per basket) (1) (4) (7) (3) (5) (6) Number Total Total Revenue Cost Marginal Total Profit of Baskets (per Hour) Price Price Cost $10.00 15.00 -$10.00 - 2.00 + 4.00 + 8.00 + 8.00 $13.00 $13.00 $13.00 13.00 13.00 13.00 13.00 $ 5.00 13.00 26.00 22.00 7.00 3 4 13.00 39.00 31.00 9.00 44.00 13.00 13.00 52.00 13.00 65.00 61.00 + 4.00 17.00 ABC DEF
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
a 5 baskets of fish b 3 baskets of fish c 4 baskets of fis...View the full answer
Answered By
Allan Simiyu
I am an adroit Writer. I am a dedicated writer having worked as a writer for 3 years now. With this, I am sure to ace in the field by helping students break down abstract concepts into simpler ideas.
5.00+
8+ Reviews
54+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
(a) Compute average fixed costs and average variable costs in Figure 5.3 for all rates of output. At what rate of output is (are) (b) Average fixed costs the lowest? (c) Average variable costs the...
-
Use Figure 7.2 to answer the following questions: (a) What rate of output maximizes total profit? (b) What is the MR at that rate of output? (c) What is the price? (d) If output is increased by 1...
-
Suppose the following data represent the market demand for catfish: Price (per unit) ....................................... $20191817161514131211 Quantity demanded (units per day) ...................
-
The number of letter misprints per page of a book, where 24 pages have been taken at random from this book, is given below. Draw and appropriate control chart and provide interpretation. Page 1 2...
-
Suppose that we have an ideal discrete-time lowpass filter with cutoff frequency c = /4. In addition, we are told that this filter resulted from applying impulse invariance to a continuous-time...
-
What is noise trader risk? How can noise trader risk lead to market inefficiencies?
-
People in this organization dont talk to one another anymore. Everything is e-mail, e-mail, e-mail. If you are mad at someone, you can just say it and then hide behind your computer. With these...
-
The 32 teams in the National Football League (NFL) are worth, on average, $1.17 billion, 5% more than last year. The following data show the annual revenue ($ millions) and the estimated team value...
-
) Jasmine bought 32 kiwi fruit for $16. How many kiwi can Lisa buy if she has $4?
-
A close-coiled helical spring has its free length as 120 mm. It absorbs 40 N-m of energy when fully compressed and the coils are in contact. The mean coil diameter is 80 mm. Find the diameter of the...
-
Suppose that the monthly market demand schedule for Frisbees is Suppose further that the marginal and average costs of Frisbee production for every competitive firm are Finally, assume that the...
-
Graph a situation where the typical catfish farmer is incurring a loss at the prevailing market price P1 (a) What is MC equal to at the best possible rate of output? (b) Is ATC above or below P1? (c)...
-
A corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 9.75 percent annually on a notional amount of 15,000,000 and receive...
-
On the planet Xgnu, 1 4 0 0 kryll = 1 blim. A book is presently being used at Xgnu University. The area of the cover of the book is 6 6 . 0 square krylls . What is its area in square blims?
-
The electric field 0.335 m from a very long uniform line of charge is 900 N/C. How much charge is contained in a section of the line of length 1.70 cm? Express your answer in coulombs. I VA lal 6.41...
-
Assume that Bob is considering an $8 million Series A investment in YelloBox in exchange of 5 million common shares. Following the Series A investment, YellowBox will have 20 million common shares...
-
A construction company needs to borrow $340 comma 000 for a new job. They decide to borrow the funds at 14% for 150 days. In 1980, the same note would have been at a rate of 23%. Find the difference...
-
A Kelvin thermometer indicates the same temperature as a Rankine thermometer. What is the temperature in Celsius? Input an integer.
-
At 6 am, an online company has sold 120 items that day. If the company sells an average of 30 items per hour for the remainder of the day, write an expression to represent the number of items that...
-
Why are stocks usually more risky than bonds?
-
What assumptions cause the immediate-short-run aggregate supply curve to be horizontal? Why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve....
-
Suppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown below: a. Use these sets of data to graph the aggregate demand and aggregate supply curves....
-
Suppose that a hypothetical economy has the following relationship between its real output and the input quantities necessary for producing that output: Input Quantity Real GDP 150.0 ......... $400...
-
Using AI answer the following question: Is accounting theory really necessary for the making of accounting rules? Discuss
-
Which of the following statements about QuickBooks Bill Pay are correct? Select all that apply. You can configure QuickBooks Bill Pay to pay bills automatically when they're added to QuickBooks...
-
Accounting I11) WE THE BEST Inc. has net sales revenue of $1,360,000, cost of goods sold of$761,100, and all other expenses of $301,000. The beginning balance of stockholders'equity is $411,000 and...
Study smarter with the SolutionInn App