Q: How do you calculate the revenue of a firm that produces only one good?
A: ANS TR is the value of the total number of goods sold by a firm in monetary terms. It is the product…
Q: for the profit of a firm to be maximum?
A: To find : First order condition.
Q: optimal number of units that should be produced and sold each month and at a profit occurs (instead…
A: ANSWER: a. Profit = Total Revenue (TR) - Total Cost (TC) Profit should be greater than zero, if the…
Q: What is the goal of a firm?
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: How many airplanes would a competitive firm produce if the market price was $14?
A:
Q: If the price of the good is 0.70$ And the firm is producing 100 units what would the profit be -10 5…
A: Marginal cost alludes to the extra expense to produce each extra unit. Average total cost is the…
Q: which market has free entry
A: Perfect competition is defined as the market structure in which there are large number of sellers in…
Q: Competition determines market price because the more that toy is in demand (which is the competition…
A: When demand increases,supply remaining same. Equilibrium price increases.
Q: The graph shows the cost curve of a firm in a competitive market. If the market price is $30, what…
A: A competitive market is characterized by a large number of buyers and sellers. Each seller will be…
Q: What is price taker meaning?
A: A price taker is a seller (or buyer) that has no influence on price. Price takers that are sellers…
Q: What is the firm's profit if the price is P1? What is the firm's profit if the price is P2?
A: A perfectly competive firm produces at level of output where P = MC ie price equals marginal cost.…
Q: A firm should shut down in the short run if it is not covering its
A: To find : When should firm shut down.
Q: Is there perfect competition in the food delivery market? Why and How?
A: Monopoly, Oligopoly, Monopolistic Competitive forces, and Perfect Competition are the four market…
Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…
A: In a market with perfect competition, every manufacturer offers the same products or services. There…
Q: Definition of Perfect market
A: A firm in any kind of market structure works with the objective of maximizing its profit and a firm…
Q: Why are sellers in perfect competition unable to increase prices?
A: Perfect competition is a market structure characterized by large number of firms selling homogenous…
Q: In what situation would a company give a discount?
A: Company is a profit making as well as employment generating organization. It provides the consumers…
Q: Who said “The customer experience is the next competitive battleground” ?
A: Customer experience refers to the perception of a business by the customers. It is formed when a…
Q: magine that you arrive at an economics experiment with six other people and are told that you will…
A: Number of units Total Revenue = P*Q Marginal Revenue 1 4*1 = 4 0 2 3*2 = 6 2 3 2*3 = 6 0 4…
Q: What kind of business is a water refilling station? What problems are solved with the help of a…
A: 1) A water refilling station is a business where the supplier provides safe, and drinkable water to…
Q: In __________ market structure, the firm's are price maker
A: Firms can be either price maker i.e ( having full control over setting prices) or they can be price…
Q: Why would good quality second hand cars withdraw from the market? Use economic theory to discuss…
A: The used-car industry is frequently used to explain the consequences of imperfect information. In…
Q: on. What are the profit-maximizing level of output and price respectively?
A: Profit maximizing level of output in monopoly achieved where monopoly's Marginal Revenue (MR) =…
Q: Which of the following statements is true ?
A: Correct answer is option B . A firm should increase quantity as long as price is greater than…
Q: Which line segment best reflects the supply curve for this firm? F MC ATC B Quantity CF (c) DF (d)…
A: In perfect competition, there are a large number of buyers and sellers who produce homogeneous…
Q: How do you find Profit maximization using total cost and total revenue curves in a price takers…
A: Answer: Note: since you have mentioned curves so here I am explaining it graphically. In perfect…
Q: How equilibrium price is determined under perfect competition?
A: Under perfect competition, both producers and consumers are price takers.
Q: How do you determine if a firm is profit maximizing?
A: A firm is profit maximizing if the firms total cost is less than is total revenue(TR = TC). We can…
Q: Suppose postal service of pakistan is facing increased competition from firms providing overnight…
A: Demand refers to the willingness and the ability to pay for particular good or service.
Q: View the video at the link below and share your thoughts on the economic concepts that you believe…
A: Yes it is TRUE that in order to raise prices a firm has to possess market power as the market forces…
Q: What are the requirements for a perfect competition market?
A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…
Q: Do you think firms really try to maximize profits? Do firms (especially small ones) know what prices…
A: Economist generally assume that firms act as profit maximisers. Economists don’t think there’s…
Q: How low would the market price haveto fall before the firm decided to produce nothing?
A: During production, firm incurs various costs. Some costs are fixed while some are variable. Fixed…
Q: Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best…
A: Consumer: It refers to the people who buy goods and services from the market. The producer will be…
Q: Which is most likely the result of healthy competition in the market?
A: Healthy market competition promotes good customer service, high-quality goods, and competitive…
Q: When the typical seller in a market has economic profits, then:
A: Profits are the excess of revenue receipts over the costs incurred by a firm in the production of…
Q: How to Estimate demand, costs, and profits?
A: When talking about demand We estimate the price elasticity of demand.
Q: What is Market competition?
A: The market is a place where the buyers and the sellers interact with each other and the exchange of…
Q: The Surgeon General's report will cause consumers to demand tuna at every price. In the short run,…
A: A perfectly competitive industry of good T is in long-run equilibrium at a quantity equal to 600…
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- Your friend is going to start a business. One important decision he/she has to make is setting prices for the products. In economics, a firm may set its prices differently under different situations. Based on the economic theories learned in this course, explain to your friend how a profit-maximizing firm should set its prices under different situations.How do you determine if a firm is profit maximizing?What are these mismatched trends telling us about how demand and supply work in the market?
- Please draw a demand curve. Label everything possible.If you are the manager of a company, and you recently discovered that your goods are considered by your consumers as inferior goods, what will you do?This company wants to maximize its profit in the short run. How much is a profit-maximizing quantity and price in the short run? Why? How much is its profit at that profit-maximizing quantity?
- Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run?How does technological advancement affect short and long demand?Question 4 Of 20 The graph shows the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the demand (D) curve is the same as the MR curve for such a firm. Assume that the ATC cost curves are representative of other firms in the industry. Given the current price, this firm will D = MR MC earn zero economic profit. earn a negative economic profit. earn a positive economic profit. Quantity In the long run, this market will experience exit by some firms. experience entry of additional firms. MR/MC ($)