Maximum economic profitrequires that (1)marginal revenue (MR) equals marginal cost (MC)and (2) MC not be falling with output. Economies of scaleis defined as decreasing long-run cost per unit as output increases. Diseconomies of scale is defined as increasing long-run cost per unit as outpu...
a firm can maximize profit by producing a quantity of goods that makes marginal revenue equal to marginal cost. For example, if a T-shirt company can produce shirts for $5 each, it should continue producing shirts until its marginal revenue equals $5. ...
• As usual, marginal revenue equals the price times one minus one over the elasticity of demand.• If preferences are of the S-D-S type, the elasticity of demand is a given constant. → elasticity of demand at elasticity(1) 随便看 freebees freebie freebies freebirth freebirther free...
revenue at any level of output from average revenue at the same output provided we know the point price elasticity of demand on the average revenue curve. If the price elasticity of a firm’s average revenue curve at a given level of output is equal to one marginal ...
A monopolist should set its price such that the difference between the price and marginal cost as a percentage of price equals the inverse of the elasticity of demand of its product.The profit-maximizing output and price of a monopolist occur at output level at which its marginal revenue is ...
Answer: B Diff: 1 Section: 10.1 8) To find the profit maximizing level of output, a firm finds the output level where: A) price equals marginal cost. B) marginal revenue and average total cost. C) price equals marginal revenue. D) all of the above E) none of the above Answer: E...
For a profit-maximizing firm, the price level equals its marginal revenue (MR) when ___. A.in an oligopolistic market. B.in a monopolistic situation. C.in a perfectly competitive market. D.sales rise with the increase in price level. 点击查看答案 第6题 边际收益(marginal revenue) 点击...
aTo maximize profits in the monopoly model, a firm has to charge a price so that the marginal cost equals the marginal revenue 要最大化赢利在独占模型,企业必须收取价格,以便边际成本合计边际收入[translate] abehavior of these drugs.[translate] ...
At the point of intersection of demand and supply, demand equals supply Thus, {eq}... Learn more about this topic: Producer Surplus Overview, Formula & Example from Chapter 3/ Lesson 61 32K Learn the producer surplus def...
Marginal revenue is the additional revenue that a producer receives from selling one more unit of the good that he produces. Becauseprofitmaximization happens at the quantity where marginal revenue equalsmarginal cost, it's important not only to understand how to calculate marginal revenue but also ...