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Q1) A Explain by giving example the meaning of Economic profit
B) meaning of law diminishing return support your answer by giving example
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- in which of the following statement is true? (choose one letter only) a. the Marginal Revenue is the approximate revenue from the production and sale of the x+1 unit after x units have been sold.b. the Marginal Cost is the approximate cost of producing the x−1 unit before x units have been produced. c. the Marginal Profit is the profit from the production and sale of the xth unit. d. All of these e. none of the aboveKnowledge Thinking Communication Application /2 /4 /4 /4 3. A used car dealership rents 210 cars for $9 a day. They want to increase the price to maximize their profits. They notice that if they increase the price by $1.25 that they have 10 fewer rentals. a. Create an equation for profit for the car dealership rental sales. b. Determine the price of the rental that maximizes profit.As long as the marginal benefit of producing each successive unit is greater than the marginal cost, a firm increase total profits by ______ (a. Increasing b.decreasing c. stopping) Its production. SO even after marginal cost begins to rise (as diminishing returns set )producers are likely _____ (a. Continue b. Not continue) to producing until marginal cost equals the marginal benefit from selling the good.
- (a) Calculate the value of marginal profit when marginal revenue is $400 and marginal cost is $700 (b) Is the firm getting benefits?1. What makes a certain behavior unethical? * a.If it might cause harm to yourself. b.If it might cause too much happiness to others. c.If it might cause confusion to others.Carter wants to save up some money and decided to sell lemonade. He wants to figure out what's the best price to sell it to maximize profit. Lemonade SALE 10 8 4+ 44 00 & please add own needed variables, completely up to you. Revenue question. Thx!
- Economics 1. CityGas is the only supplier of heating gas in Country K. It has a total cost function of C = 240 + 15Q. a. Find the marginal cost of CityGas. Show your steps. b. Based on your result in (a), show the marginal cost of CityGas in a graph. c. Making use of the graph in (b), show the profit- maximizing output level, and price of CityGas. (No calculation is required). d. i. Identify one key feature of the average cost of CityGas. Explain why this implies CityGas is a monopoly in the market of heating gas in Country K. ii. Besides (d)(i), briefly explain TWO other causes of monopoly power in general.A market research study of current and potential customers of drones found that “service after the sale” was their biggest issue with their current BATNO. If you were going to go into the business of building and selling drones, you would. A. Price your drones lower than the competition. B. Design a drone with a longer battery life (and therefore longer flight time) than what is currently available. C. Put a better camera in your drone than that which is currently available. D. All of the above. E. None of the above.Discuss the significant of product differentiate in imperfect market. Use example to support your answer
- QUESTION 4 Use the graph to determine the extemal marginal cost of a producing a honey bun. Market for Honey Buns $9.00 $5.00- $4.50 $4.00 $0.50 $1.00 $4.50 Ⓒ$5.00 500 600 SMC S = PMC D=PMB = SMB QExample of law if Diminishing ReturnsEconomics How would the principle agent problem differ from other major theories(profit maximization, revenue maximization etc.) that explain the behaviour of firm. explain
