Q: EXPLAIN RELATIONSHIP BETWEEN THE MARGINAL REVENUE AND THE AVERAGE REVENUE.
A: According to the given question Marginal revenue in simple words we can say that is the introduction…
Q: marginal profit is $30 and marginal revenue is $84 Calculate marginal cost
A: The given information is as follows:- Marginal profit= $30 Marginal revenue = $84 We need to find…
Q: What is the Imperfect competition that refers to any form of market structure other than perfect…
A: Perfect competition refers to a market in which there is many seller and buyer dealing in a…
Q: The application of the marginal cost pricing principal in a decreasing cost industy would lead…
A: According to the given question The cost principle basically determines the practice of setting the…
Q: Do firms really equate their marginal cost with marginal revenue?
A: Answer
Q: Should the Marginal revenue exceed the marginal cost? Why?
A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…
Q: How to calculate the Marginal cost and the Revenue of producing 1, 2,...15
A: Marginal cost can be defined as the change in total cost when one more unit of extra output is…
Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?
A: Given that the market structure is monopolistic competition, the profit maximizing condition is MC=…
Q: The value of marginal revenue is $35 and the value of marginal cost is $30 Is the firm maximizing…
A: # The values of marginal revenue and the marginal cost helps us gain the idea whether the firm is…
Q: What is the relationship between revenue cost and profit?
A:
Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…
A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…
Q: Can the marginal revenue be negative??? True/False
A: Marginal revenue refers to the amount of additional revenue thay a producer gets when he produces…
Q: Economic profit is a ) P(Q ‐ ATC) b ) PQ/ATC. c ) (P + ATC)Q d ) (P ‐ ATC)Q
A: Economic profit refers to the difference between total revenue and the sum of implicit and explicit…
Q: Soft drink industry has been historically profitable why? compare the economies of the concentrate…
A: Soft drink Industries are profitable because:- These industries needed lower investments. This can…
Q: Use the table to compute the marginal revenue and marginal cost
A: Marginal revenue is given as the additional revenue generated by producing one more unit of a good.…
Q: Marginal profit is $4 and marginal revenue is $39 Calculate marginal cost
A: Given: Marginal profit=$4 Marginal revenue=$39 To find: Marginal cost
Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…
A: At the point when an organization doesn't follow economic theory and charges costs below the…
Q: If you are a manager in a highly competitive business such where should you put your most effort to…
A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…
Q: Define the term cost of revenue?
A: Revenue is defined as the amount of money or income generated by a firm for a given period of time.…
Q: Draw the cost-volume-profit diagram?
A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…
Q: Calculate the value of Marginal revenue when marginal cost is $73 and the marginal profit is 0
A: # the marginal profit is given as the difference between the marginal revenue which is collected by…
Q: How do you define 'profit
A: The main objective of the firm in whether competitive or imperfect competition market is Profit…
Q: What are the advantages of pure competition?
A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…
Q: If you're a manager in a highly competitive business such where should you put your most effort to…
A: As a manager ,the primary responsibility is to look in the profits of the business. Business can be…
Q: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…
A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom
Q: Why must the marginal revenue be equal to the marginal cost for a producer? Explain.
A: Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit…
Q: A. Define marginal revenue and marginal cost.
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…
A: Imperfect competition is that market structure which does not include Perfect competition. It…
Q: Fill in the blank. "For a firm to be in equilibrium, Marginal Revenue (MR) and Marginal Cost (MC)…
A: The change in the total costs arising when a quantity is increased and the total cost of producing…
Q: What does that mean in terms of long-run profit?
A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…
Q: Which 'Economies of Scale' creates imperfect competition and Why?
A: Economies of scale refers to a situation where there is fall in per unit output of average cost with…
Q: In perfect competition, if the marginal cost increases which way does the curve shift? what are some…
A: Perfect competition is one of the market structures out of 4 types of market structures in an…
Q: Define the term Unit-Profit?
A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…
Q: Can the given Marginal revenue be negative ? True or false
A: According to the given question It is the amount of the marginal revenue which usually whatever will…
Q: Compare marginal revenue, marginal cost, and marginal revenue product.
A: The concepts of marginal revenue, marginal cost and the marginal revenue product are used by the…
Q: Marginal revenue (MR) is ____ when total revenue is maximized.
A: Marginal revenue is the revenue that can be earned by selling an additional unit of output. Total…
Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…
A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…
Q: Discuss where does the shutdown being and why? What does the company has to do to get back to…
A: The answer is given below
Q: Explain manufacturing firms should use demand leading instead of demand trailing capacity strategy.
A: A lead limit technique (lead request procedure) is a proactive methodology that adds or takes away…
Q: To compute Economic Profits, which costs are used? Illustrate
A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…
Q: How do you calculate marginal cost and marginal revenue?
A: Marginal revenue: Marginal revenue refers to the additional revenue that made by selling of one…
Q: is equal to average variable cost. is greater than marginal revenue. equals marginal revenue.
A: Consumer surplus shows the additional utility obtained by the consumer after consuming all units of…
Q: Degree of competition and define it's types.
A: There are four degrees of competition. Monopoly : in monopoly there is only one seller and hence…
Q: Marginal revenue and marginal cost are $850 and $700 respectively Calculate the value of Marginal…
A: The information being given to us is as follows:- Marginal revenue = $850 Marginal cost = $700 We…
Q: A firms total profit equals?
A: The amount of money a company makes by selling its goods or services at a specific price is revenue.…
Q: What is the meaning of economic profit. Support your answer by example?
A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…
Q: Distinguish clearly between Marginal Revenue and Marginal Costs using suitable examples.
A: Marginal revenue is defined as the additional revenue after selling one more unit of output.
Q: 1. In perfect competition, price equals marginal cost. Why is this not possible when there are…
A: In a perfectly competitive market, it can be seen that the market output is one at which price…
Marginal revenue must exceed marginal cost.Explain why?
Step by step
Solved in 2 steps
- How do you define 'profit'?I. Desktop Publishing Software, Inc Desktop Publishing Software, Inc., develops and markets software packages for business computers. Although sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severely retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out." The marketing and accounting departments have provided management with the following monthly demand and cost information: P = $1,000 - $1Q TC = $50,000 + $100QPrice = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic profit equal?
- What is the cost revenue? Explain with example?What happens when a company doesn't follow economic thoery and charges pries below the marginal revenue point? Or doesn't realize the economies of scale?Thinking on the Margin to Increase Profitability Have you ever walked into a restaurant for lunch and found it almost empty? Why, you might ask, does the restaurant even bother to stay open? It might seem that the revenue from so few customers could possible cover the cost of running the restaurant. Provide an opinion using the concepts of sunk costs, marginal cost and marginal revenue.