moving down the elastic segment of the monopolist’s demand curve‚ total revenue is: A. Increasing‚ and marginal revenue is negative. B. Decreasing‚ and marginal revenue is positive. C. Decreasing‚ and marginal revenue is negative. D. Increasing‚ and marginal revenue is positive. 2. Suppose that a monopolist calculates that at present output and sales levels‚ marginal revenue is $1.00 and marginal cost is $2.00. He or she could maximize profits or minimize losses by: A. Decreasing price and increasing
Premium Economics Marginal cost Monopoly
following The total satisfaction received from consuming a particular amount of a product 2 Which best express the law of diminishing marginal unity? The less of a product is consumed‚ the greater is the marginal utility of the product 3 Refer to the above table. What is the marginal utility of the fourth unit? 80 4 If the total utility is increasing‚ then marginal utility: May either be increasing or decreasing‚ but it must be greater than zero 5 Assume that a consumer purchases a combination
Premium Economics Costs Marginal cost
again that labor is the variable input and capital is the fixed input. Specifically‚ assume that the firm owns a piece of equipment having a 500-bhp rating. a. Complete the following table: |LABOR INPUT L (NO. OF WORKERS)|TOTAL PRODUCT TPL (=|MARGINAL PRODUCT MPL |AVAERAGE PRODUCT APL | | |Q) | | | |1 | | | | |2
Premium Marginal cost Economics of production
Business Proposal Timothy Anderson ECO 561 Daniel Rowe July 16‚ 2012 Business Proposal A current issue with home health care and senior citizens is the need for medicine and food. In the current state of the economy with the rise and gas prices and the need of people to still commute‚ people have to figure out ways to get to and from pharmacies and grocery stores. In the economy two markets that will not fail in recession are discount retail food and medicine because people need both to
Premium Economics Costs Marginal cost
revenuecurve.Further‚ in monopoly‚ since average revenue falls as more units of output are sold‚the marginal revenue is less than the average revenue.In other words‚ under monopolythe MR curve lies below the AR curve. The Equilibrium level in monopoly is that level of output in which marginal revenueequals marginal cost.The producer will continue producer as long as marginal revenueexceeds the marginal cost.At the point where MR is equal to MC the profit will bemaximum and beyond this point the producer
Premium Economics Marginal cost
Question 1 4 out of 4 points Economic theory is a valuable tool for business decision making because it Selected Answer: identifies for managers the essential information for making a decision. Question 2 4 out of 4 points Consider a firm that employs some resources that are owned by the firm. When accounting profit is zero‚ economic profit Selected Answer: must be negative and shareholder wealth is reduced. Question 3 4 out of 4 points Suppose Marv‚ the owner-manager
Premium Economics Costs Marginal cost
(Gwartney‚ Stroup‚ Sobel‚ Macpherson).” To increase a price takers profit‚ they decide on the production amount based on the costs and price chosen by the market. It also tells us in the text that a price taker will expand its output until marginal cost equals marginal revenue. After researching price markets‚ I was intrigued to find out that price takers are created from the lack of market control. A price taker is a buyer or seller that has no market control and is not able to affect the price of a
Premium Economics Gasoline Cost
TV Listings Magazines‚ Inc. 1. Increased Circulation in Culver City‚ Florida Change in Output 20‚000 Copies Change in Cost Marginal Cost per copy Paper Cost $2‚240 $0.11 Binding $380 $0.02 Delivery $260 $0.01 Total Cost $2‚880 $0.14 The cost to TV Listings for an additional 20‚000 issue is $2‚880. Based on our analysis‚ the variable cost that is affected on the additional issues are paper‚ binding and delivery cost. The only variable cost that
Premium Marginal cost Costs Variable cost
electricity generation. b. Determine the long-run marginal cost function for electricity generation. c. Holding plant size constant at 150‚000 kilowatts‚ determine the short-run average variable cost and marginal cost functions for electricity generation. d. For a plant size equal to 150‚000 kilowatts‚ determine the output level that minimizes short-run average variable costs. e. Determine the short-run average variable cost and marginal cost at the out- put level obtained in Part (d).
Premium Marginal cost Costs Economics
units) # of units (FC / V + Q) Break-even point = (FC + DEP) / (P– V) Total production cost: TPC = (material cost + variable labor exp) (production) + FC = (V x Q) + FV Marginal cost per pair: MCPP = material cost + variable labor exp Avg cost per pair: ACPP = TPC / production Total revenue: TR = (# of items) x (Marginal cost per pair) ACCT break even = (FC + DEP) / (P-V) contribution margin Cash break-even point: when OCF = 0 Q = FC / (P-V) Financial break-even: when NVP = 0 FC + (OCF)
Premium Rate of return Variable cost Costs