Define the marginal revenue curve at an output level

Assignment Help Econometrics

Reference no: EM13202460

At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1000 units. What is the firm's current profit? What is likely to occur in this market, and why?

Reference no: EM13202460

Questions Cloud

What is her profit - loss : An investor writes (or sells) one put option contract. If the price of gold in the spot market at the maturity date of the option is $1095, what is her profit-loss - The spot rate for the euro when the forward contract matures is $1.50/€. What is h..

What is the profit position of the firm at the moment : Arrow now sells 100,000 silk shirts at $100 each. The material per shirt costs $40 and labor costs are $50 per shirt. The firm has $1.2m. in fixed costs. Price elasticity of demand for such shirts is -4. The firm is considering lowering the price ..

What is the current profit to the exporter : BMW sells 5,000 vehicles in the US. The export price is €40,000. The exchange rate is €1= $1.25. US price elasticity of demand for the German import, in terms of the $ price, is-2. The cost of each vehicle is €30,000. What is the current € profit ..

Determine does the bank now hold excess reserves : Suppose a depositor comes to the bank and withdraws $200 in cash. Show the banks new balance sheet assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves Is it meeting the required reserve ratio

Define the marginal revenue curve at an output level : At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve.

What is annual rate of return with continuous compounding : The interest rates in Canada and the United States are 6% and 5% per annum, respectively, with continuous compounding. The spot price of the Canadian dollar is $0.8000.

Develope a cumulative frequency distribution : Missy Walters owns a mail-order business specializing in clothing, linens, and furniture for children. She is considering offering her customers a discount on shipping charges for furniture based on the dollar-amount of the furniture order.

Determine percent frequency distribution of the car colors : Roger believes the colors chosen by customers who special-order their cars best reflect most customers' true color preferences. He has taken a random sample of 40 special orders for Mustang coupes placed in the past year. The new color options are..

Is the firm charging the optimal price for thimajigs : Suppose Thimajigs have a variable cost of $10 per unit and currently sell for $25. Price elasticity of demand for Thimajigs Et = -3.0 (A) Is the firm charging the optimal price for Thimajigs Demonstrate how you know.(B) Should the price be changed I..

User Account

All Pages