In perfect competition, a firm can maximize profit by producing at a quantity where price Is lower than the firm's competitors. Is equal to the firm's marginal revenue. Is equal to the firm's average total cost. Is equal to the firm's marginal cost.
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- The marginal cost to produce one bottle of developer is $5. There is no fixed cost. Note that this is a market demand, not a firm's individual demand schedule. 1)Calculate total revenue, total cost, marginal revenue and total profit. Quantity Demanded : 0, 10, 20, 30, 40, 50, 60, 70, 80 Price: 40, 35, 30, 25, 20, 15, 10, 5, 0 2) If the market for developer is perfectly competitive, what quantity will be produced? What price will be charged? What will the firm’s profit be? Write a sentence explaining how you determined each of those three answeA firm’s marginal cost is $5. If it charges a price of $20, the price elasticity of demand for the product of this firm is: a. −0.25. b. −0.50. c. −0.75. d. −1.33. e. None of the above.A perfectly competitive hardware manufacturer has a total revenue of $85 million, total variable costs of $45 million, and fixed costs of $10 million. What is the firm’s producer surplus?
- Profits are maximized at the output at which marginal cost equals marginal revenue. If the market price falls below the minimum average variable cost: * the firm should shut down. the firm should produce more. the firm should produce less. the firm should make a discount in amount of marginal cost None of the above.Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240In perfect competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product. True or false
- Generally, firm demand within an industry is:A. Likely to have greater price elasticity than the industry demand as a wholeB. Likely to have less price elasticity than the industry as a demand wholeC. Not relevant to industry demandD. None of the aboveWhen the competitive firm maximizes profit, its marginal cost of an additional unit of output is always equal to the: Minimum of average total cost. Minimum total cost. Price. Maximum total revenue.Demand function for service is P = -0.5Q + 94 The marginal cost and also the average cost of providing this service is 11. What is the price of this service if there is perfect competition in this market?
- Which of the following is not a characteristic of a perfectly competitive market. One firm's product is a perfect substitute for every other firm's product. There are no barriers to entry. Sellers are price makers. It has many buyers.If a firm is a price taker, then its marginal revenue will always equal * a)price. b)zero. c)total cost. d)one.Marginal revenue is A) the change in total revenue from a one-unit increase in the quantity sold. B) less than price for a perfectly competitive firm. C) another name for total revenue. D) the economic profit from producing an additional unit of output. E) the change in total cost from producing an additional unit of output.