Determine that the lowest sustainable average cost

Assignment Help Macroeconomics

Reference no: EM13180734

A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50?

Reference no: EM13180734

Questions Cloud

Find initial cost and net income : Stephen Zehnder, an enterprising engineer, wants to get into business. He is looking at the following two alternatives. He has compiled the cost data for both alternatives as shown in table below. If Stephen wants to have at least a rate of return..

Compute the concentration of cu in a solution : Calculate the concentration of Cu2+ in a solution prepared by adding 4.9×10^?3mol of CuSO4 to 0.480L of 0.35M NH3.

Compute the ph at the equivalence point barbituric acid : Calculate the pH at the equivalence point if 25.00 mL of 0.010 M barbituric acid (HC4H3N2O3) is titrated with 0.20 M NaOH. (Ka barbituric acid = 1.0 x 10^-5).

Compute the ph at the equivalence point barbituric acid : Calculate the pH at the equivalence point if 25.00 mL of 0.010 M barbituric acid (HC4H3N2O3) is titrated with 0.20 M NaOH

Determine that the lowest sustainable average cost : A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the p..

State nature valley trail mix : A "Nature Valley Trail Mix " chewy granola bar contains 140 calories (Cal). If this energy were to be used to heat up 4.25 L of water at 25 degrees Celsius

State sodium acetate buffer before and after the addition : sodium acetate buffer before and after the addition of a) .0070 moles KOH and b) .0070 moles HBR a strong acid. Assume volume remains constant

What is sams compensating variation for the proposed policy : Sam currently earns $30,000 per year. the governments is considering a policy that would increase sam's income by 12%, but raise all prices by 8%. what is sam's compensating variation for the proposed policy? can you compute it without knowing his..

State chemical equations for the reaction of calcium : Write chemical equations for the reaction of calcium with the following substances, making sure that the numbers and kinds of atoms are the same on both sides of the equations

User Account

All Pages