The correct answer is: elastic a monopolist will maximize profits by: select one: a setting his price as high as possible b setting his price at the level that will maximize perunit profit c producing the output where marginal revenue equals marginal cost. Liberty university econ 213 quiz 8 complete solutions correct answers key question 1 total revenue minus total cost is equal to: question 2 in the short run, the cost of _____ is variable, whereas the cost of _____ is fixed. All of the other answer choices involving either total revenue or total cost are incorrect because profit-maximization occurs at the margin, ie the profit-maximization rule applies to marginal, not total, cost curves. Marginal cost is an increase in total cost that results from a one unit increase in output it is defined as: the cost that results from a one unit change in the production rate example: for example, the total cost of producing one pen is $5 and the total cost of producing two pens is $9, then the marginal cost of expanding output by one unit is $4 only (9 - 5 = 4) the marginal cost.
Figure 83 shows a firm's marginal cost, average total cost, and average variable cost curves the firm's total fixed cost is: 05/05 correct answer(s): b. Final exam answer key december 10, 2009 dr j friesen 3 hours no calculators, no aids allowed part 1 40 multiple choice questions @ 15 marks each indicate your answers on the bubble sheet provided 1) during the next hour john can choose one of the following three activities: playing basketball, watching television, or reading a book the opportunity cost of. Recent exam questions from chapter 7-solutions homepage review questions for economics 111 1 marginal revenue (mr) is the change in total revenue while marginal cost (mc) is the change in total cost since total revenue is increasing by less than total cost is increasing, marginal revenue is less than marginal cost marginal profit = mr - mc.
To answer this question, we would compare the marginal revenue product (mrp) to the marginal resource cost (mrc) of $20 if the mrp is greater than or equal to the mrc then we should employ the resource if the mrp is less than the mrc, we should employ fewer resources when examining the marginal revenue product, we see the law of diminishing. Correct answer: (a) the correct graph for a monopolistically competitive firm will show a downward-sloping d curve with a downward-sloping mr curve below it the firm’s price and output would be found at the. Changes in total costs and profit maximization a firm maximizes profit by operating where marginal revenue equals marginal cost in the short run, a change in fixed costs has no effect on the profit maximizing output or price. However, you are not sure of the correct answer but have some knowledge of the question and are able to eliminate one or more answer choices as wrong, your chance of getting the right answer is improved, and it may be to your advantage to answer such a question. The simple answer is diminishing marginal returns assuming costs are on the vertical axis and quantity is on the horizontal axis, marginal cost curves are usually positive, reflecting higher costs, after the initial period of down sloping caused by increasing efficiency.
There is a difference between average cost and marginal cost the average cost of a product is the total cost of making a product divided by the total number of products made if a company produces 500 hats and spends 3000 dollars to make the hats, the average cost of. Essay about marginal cost and correct answer 1404 words | 6 pages economic cost correct answer: total economic cost question 2 5 out of 5 points recently, the american medical association changed its recommendations on the frequency of pap-smear exams for women the new frequency recommendation was designed to address the family histories. D marginal cost curve that lies between the average total cost and average variable cost curves 7 which of the following is a feature of pure competition which of the following is a feature of pure competition.
Marginal cost is the rate of change of cost c(x) at the level of production x and is equal to the slope of the cost function at x o d fixed cost is the constant for a particular product and does not change as more items are made the number of units at which revenue just equals cost is the miarginalaost. Compare the marginal benefits to the marginal costs the fourth concept is to compare the marginal benefit to the marginal cost the term marginal means additional marginal benefit is the additional benefit (eg, the increase on a test score from studying one more hour the additional return from producing one more unit of output or. Marginal costs are variable costs consisting of labor and material costs, plus an estimated portion of fixed costs (such as administration overheads and selling expenses) in companies where average costs are fairly constant, marginal cost is usually equal to average cost. Best answer: you have already given some figures for average variable cost and these are verified correct in any case ,see the answers below: a the marginal cost and average variable cost for each level of production are as follows: q vc mvc avc 1 10 10 10 2 16 6 8 3 20 4 667 4 25 5 625 5 31 6 62 6 38.
Resource cost is equal to supply and price of the resource if a monopsony (ie a firm that has the power to pay less than the going price for a resource by limiting how much it uses of that resource) is present, the marginal resource cost of the. Marginal cost, marginal revenue, and marginal profit all involve how much a function goes up (or down) as you go over 1 to the right — this is very similar to the way linear approximation works say that you have a cost function that gives you the total cost. C)the marginal benefit of a good exceeds its marginal cost d)there is equity as well as efficiency in allocation of resources e)none of the above answers is correct. Answer: a 12) the marginal revenue curve for a perfectly competitive firm is a) an upward sloping curve b) a downward sloping curve c) a horizontal line d) none of the above answers is correct answer: c 13) at a firm's break-even point, its a) total revenue equals its total opportunity cost b) marginal revenue exceeds its marginal cost.