Marginal Revenue and Marginal Cost Relationship Questions
ch08
Student: ___________________________________________________________________________
1.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. How much output should be produced in plant 1 in order to maximize profits? A. 1
B. 2
C. 3
D. 4
2.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are
MC1 = 3Q1 and MC2 = 2Q2. What price should be charged to maximize profits?
A. $20.5
B. $40.5
C. $60.5
D. $80.5
3.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are
MC1 = 3Q1 and MC2 = 2Q2. What price should be charged in order to maximize revenues?
A. $39
B. $47
C. $52
D. $56
4.
Which of the following is true under monopoly?
A. Profits are always positive.
B. P > MC.
C. P = MR.
D. All of the choices are true for monopoly.
5.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. The profit-maximizing output for your firm is:
A. 4/5.
B. 10.
C. 5.
D. 45.
6.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
A. 125.
B. 250.
C. 100.
D. 85.
7.
You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing output for your firm is:
A. 4.
B. 5.
C. 6.
D. 7.
8.
You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing price is:
A. 150.
B.
Student: ___________________________________________________________________________
1.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. How much output should be produced in plant 1 in order to maximize profits? A. 1
B. 2
C. 3
D. 4
2.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are
MC1 = 3Q1 and MC2 = 2Q2. What price should be charged to maximize profits?
A. $20.5
B. $40.5
C. $60.5
D. $80.5
3.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are
MC1 = 3Q1 and MC2 = 2Q2. What price should be charged in order to maximize revenues?
A. $39
B. $47
C. $52
D. $56
4.
Which of the following is true under monopoly?
A. Profits are always positive.
B. P > MC.
C. P = MR.
D. All of the choices are true for monopoly.
5.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. The profit-maximizing output for your firm is:
A. 4/5.
B. 10.
C. 5.
D. 45.
6.
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. Your firm's maximum profits are:
A. 125.
B. 250.
C. 100.
D. 85.
7.
You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing output for your firm is:
A. 4.
B. 5.
C. 6.
D. 7.
8.
You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profit-maximizing price is:
A. 150.
B.