Describe relationship between marginal revenue and cost

Reference no: EM13177778

Short run profit maximization A monopolistically competitive firm faces the following demand and cost structure in the short run:
Output Price FC VC TC TR Profit/loss
0 $100 $100 $0 ___ ___ ___/___
1 90 ___ 50 ___ ___ ___/___
2 80 ___ 90 ___ ___ ___/___
3 70 ___ 150 ___ ___ ___/___
4 60 ___ 230 ___ ___ ___/___
5 50 ___ 330 ___ ___ ___/___
6 40 ___ 450 ___ ___ ___/___
7 30 ___ 590 ___ ___ ___/___

a. complete the table
b. What is the highest profit or lowest loss availability to this firm?
c. Should this firm operate or shut down in the short run? Why?
d. What is the relationship between marginal revenue and marginal cost as the firm increases output?

Reference no: EM13177778

Questions Cloud

At what rate is the angle between string and horizontal : A kite 100ft above the ground moves horizontally at a speed of 8fts. At what rate is the angle between the string and the horizontal decreasing when 200ft of string have been let out?

Find the yield to maturity of the securities : a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today ?a security paying $ 50 every six months for the next five years (beginning six months from now), plus the return of the face value of $1,000 at ..

How much is her monthly mortgage payment : Amanda Thomas buys a house for $206,400 with a down payment of 20% of the price. If she takes out a 30-year mortgage at 6% compounded monthly, how much is her monthly mortgage payment?

What is the maximum height of the javelin : A javelin is thrown in the air. It's height is given by h(x)= -1/20x^2+8x+6, where x is the horizontal distance in feet from the point at which the javelin is thrown.

Describe relationship between marginal revenue and cost : What is the highest profit or lowest loss availability to this firm?Should this firm operate or shut down in the short run? Why? What is the relationship between marginal revenue and marginal cost as the firm increases output?

Explain how to factor the following trinomials forms : Explain how to factor the following trinomials forms: x2 + bx + c and ax2 + bx + c. Is there more than one way to factor this? Show your answer using both words and mathematical notation.

Find the distance d of the fire from the line segment ab : Two fires towers are 30 kilometers apart, tower A being due west of tower B. A fire is spotted from the towers, and the bearings from A and B are E 14 N and W 34 N. Find the distance d of the fire from the line segment AB.

Find probability that exactly 3 boys will be selected : Suppose that a class contains 15 boys and 30 girls, and that 10 students are to be selected at random for a special assignment. Find the probability that exactly 3 boys will be selected.

Explain importance of small difference in the rate of growth : After 25 years, the level of GDP in the second country is more than 25% larger than that of the first country. Why? And what does this show of the importance of small differences in the rate of growth?

User Account

All Pages