5. Why does profit maximization imply that marginal revenue equals marginal cost? Why is it that in...

Question:

5. Why does profit maximization imply that marginal revenue equals marginal cost? Why is it that in a competitive market only, profit maximization implies that price equals marginal cost?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Microeconomics

ISBN: 9784492370292

6th Edition

Authors: John B. Taylor, Akila Weerapana

See More Books

Question Posted: Nov 05, 2024 04:00 AM

See More Questions

Please use the attachment for guidance. Complete each of the following economic problems. Problem A Use the national income data in the table below to compute the following: GDP. NDP. NI....
Clark had brain surgery. Insurance will not pay for the surgery until the deductible of $1,000 is hit. Then Clark's coinsurance of 80% / 20% kicks in. Clark has an out-of-pocket maximum of $7,500....
Problem 14 in Chapter 15 described a study examining the effectiveness of a 7-Minute Screen test for Alzheimer's disease. The study evaluated the relationship between scores from the 7-Minute Screen...
Problem 7.61 using the method of Sec. 7.6 solve Prob. 7.32. Problem 7.32: For the beam and loading shown, (a) Draw the shear and bending-moment diagrams, (b) Determine the maximum absolute values of...
5. Why does profit maximization imply that marginal revenue equals marginal cost? Why is it that in a competitive market only, profit maximization implies that price equals marginal cost?
Two different companies are offering a punch press for Company a charges $250,000 to deliver and install the device. Company A has estimated that the machine will have maintenance and operating costs...
Read the case study: Transforming Commissioning at Central India Oil Refineries Ltd ( CIORL ) Case ( Appendix 1 ) and answer the following questions: 1 Evaluate the contracting and subcontracting of...
4. Why does marginal cost increase as more is produced?
6. What is the relationship between an individual firms supply curve and its marginal cost curve?
=+3. List three vacation activities that attract senior citizens.
Members of the board of directors of Deluxe Salety have received the following operating income data for the year just ended Click the icon to view the operating income data) Members of the board are...
Team batting averages for Major League Baseball in a certain year are represented below. Find the variance and standard deviation for each league. Compare the results. Use a graphing calculator....
Your software automatically calculates discounts on the price of tickets for your customers based on purchase habits, with a maximum discount of 1 0 0 % for customers who have earned a complimentary...
Sandstorm Manufacturing Inc. makes two types of industrial component parts-the LE100 and the UL600. It annually produces 56,000 units of LE100 and 12,100 units of UL600 The company's conventional...
During your audit of Carla Pang Inc. you prepared the following bank transfer schedule. Check Bank Accounts Date Disbursed Date Deposited Number From To Amount Books Bank Books Bank 2001 City Bank...
Calculate the forces FA and FB that the supports exert on the diving board of Fig. 9-42 when a 58-kg person stands at its tip. (a) Ignore the weight of the board. (b) Take into account the boards...
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)

5. Why does profit maximization imply that marginal revenue equals marginal cost? Why is it that in...

Question:

Step by Step Answer:

Principles Of Microeconomics

Students also viewed these Business questions