The profit-maximizing quantity is the one at which the marginal revenue of the last unit was: O greater than the marginal cost. O less than the marginal cost. O equal to the marginal cost. O zero.
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The profit-maximizing quantity is the one at which the marginal revenue of the last unit was:
O greater than the marginal cost.
O less than the marginal cost.
O equal to the marginal cost.
O zero.
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- What is the marginal revenue gained when one more unit of output is sold? The price at which the extra unit is sold but adds the rise in revenue of the previous units that could have been sold at a higher price O a. O b. The price of the unit of output sold minus the production cost of that unit The price of the unit of output sold O c. Od. The price at which the extra unit is sold but subtracts the drop in revenue of the previous units that could have been sold at a higher priceIt is defined a condition where the total revenue is equal to the total cost, and an increase in demand will result in a profit for the operation. O A. Demand O B. Breakeven point O C. Supply O D. Optimal volumeThe profit maximizing rule states that a business maximizes profits when marginal cost equals Select one: O a. Variable costs O b. Fixed cost O c. Marginal revenue O d. None of the above
- You learn that a firm's average total costs (ATC) and average variable costs (AVC) are exactly equal. What does that mean? O Marginal cost is zero O ATC and AVC must be equal to zero O Average fixed costs (AFC) are zero O Economic profit is positive O Economic profit is negativeThe table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Marginal Cost (dollars) $1.60 Quantity (pairs of Average Total Cost |(dollars) $2.2 mittens) 25 30 2.00 2.17 35 2.45 2.21 40 3.55 2.38 45 4.00 2.56 50 5.50 2.85 55 6.00 3.14 60 8.50 3.58 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? 6 pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? %24 %24When large retailers like Costco offer products at a discounted price because they are able to negotiate cheaper rates with their suppliers compared to smaller competitors, they benefit from O Availability of compliments. O Learning-curve effects. O Experience-curve effects. Economies of scale.
- A firm is producing the profit-maximizing amount of output when it is producing where its curve intersects its curve. Select one: total cost; total revenue O average total cost; average variable cost O marginal cost; average total cost O marginal cost; marginal revenue O marginal cost; average variable costThe profit (in dollars) from the sale of x lawn mowers is II(x) = 70 x -0.07 x2 - 750. The correct interpretation of the marginal average profit of producing 40 mowers is Select one: O a. Can not tell. O b.At production level of 40 mowers a unit increase in production will increase the total profit by $0.40 per mower. O c. At production level of 40 mowers the average profit is increasing at a rate of $0.40 per mower. O d. At production level of 40 mowers the average profit is $0.40 per mower.Marginal cost is average variable cost when O a. equal to; average variable cost is minimized. O b. greater than; average fixed cost is minimized O c. equal to; average total cost is minimized O d. less than; total cost is maximized If Mark produces five pairs of earrings, his total costs are Number of TVC MC AVC TFC TC Earnings 100 1 50 2 3 46.67 4 300 5 270 O a. $320. O b. $370. O c. $400. O d. $360.
- Economic profit is Select one: O a. O b. equal to accounting profit equal to total revenue minus explicit costs O c. equal to total revenue minus both implicit and explicit costs O d. always greater than accounting profitA firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift altA firm will at the output where marginal cost increases O a. begin to experience diminishing returns O b. become profitable O c. begin to experience increasing returns O d. start to experience losses