Find marginal revenue at each positive level of output

Assignment Help Managerial Economics
Reference no: EM1372323

A perfectly competitive company has the following fixed and variable costs in short run. The market price for the company's product is $150.
Output FC VC TC TR Profit/Loss
0 $100 $ 0 $100 $ 0 -$100.00
1 $100 100 $200 $150 -$ 50.00
2 $100 180 $280 $300 $ 20.00
3 $100 300 $400 $450 $ 50.00
4 $100 440 $540 $600 $ 60.00
5 $100 600 $700 $750 $ 50.00
6 $100 780 $880 $900 $ 20.00

a. At what output rate does the firm maximize profit or minimize loss?
b. What is the firm's marginal revenue at each positive level of output? Its average revenue?
c. What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit-maximizing (or loss-minimizing) rate?

 

Reference no: EM1372323

Questions Cloud

What is the electric force acting on alpha particle : Assume the masses described in the preceding problem are 1kg and 100kg in that order. Compare the accelerations while they are interchanged.
Calculate point price elasticities of demand for customer : Calculate point price elasticities of demand for each customer product at activity levels identified in part A.
Does evidence indicate that firm size significant : Define ways MNCs can use to minimise/reduce/manage exposure to exchange rate risk and interest rate risk. Does evidence indicate that firm size significant.
Find the electrostatic force exerted on one sphere : A 15.0{rm cm}-diameter non-conducting sphere carries a total charge of 2.25 mu {rm C}, distributed uniformly throughout its volume. Graph the electric field E as a function of the distance r from the center of sphere from r = 0 to r = 30.0{rm{ cm}..
Find marginal revenue at each positive level of output : A perfectly competitive company has the following fixed and variable costs in short run. The market price for the company's product is $150.
What will gdp be in new equilibrium : Suppose that GDP is currently $25,000 and marginal propensity to consume is .50. If autonomous investment increases by $5,000, what will GDP be in new equilibrium.
Compute the time t for the pencil to hit the ground : The bolts on a car wheel require tightening to the torque of 90 N•m. If a 30 cm long wrench is used, what is the magnitude of the force necessary when the force applied at 53° to the wrench.
How does it affect level of investment and interest rates : How does it affect level of investment and interest rates. How does it affect individual consumer. Give at least three examples in your response.
Question about marginal productivity theory : What if a company employs ten workers and pays each $15 each hour. Further suppose that the MP of the 10th worker is five units of output

Reviews

Write a Review

Managerial Economics Questions & Answers

  Maximizing output labor cost

Suppose you have been appointed as Global Manager of a company that has 2-plants, one in the US and one in Mexico. Suppose, you cannot change the size of plants or amount of capital equipment.

  Calculate time weighted rate of return

A portfolio manager is being evaluated based on the time-weighted average rate of return. If the manager had achieved annual returns for the past three years of 2.5 percent, 14.5 percent and 9 percent on one initial investment of $500,000,

  Price change on total cost, total revenue and total profit

Wyandotte Chemical Corporation sells many chemicals to automobile industry. Wyandotte currently sells 30,000 gallons of polyol per year at an average price of $15 per gallon.

  Marginal physical product of labor

Use the following information for a company's output at various levels of employment to compute: its marginal physical product of labor schedule; its schedule,

  Explain barriers to entry and limit pricing

Assume that, prior to other company's entering the market, the maker of a new smartphone earns $100 million per year. By reducing its price by 50%,

  Find the marginal product and average product

Following are the Production Function: Q = 72X + 15X2 - X3, where Q = Output and X = Input The Marginal Product and Average Product when X = 6 are;

  Find the technical rate of substitution

Suppose a company that uses two inputs. The quantity used of input 1 is denoted by x_1 and the quantity used of input 2 is denoted through x_2.

  Determine economically efficient move

Business Week, in an article dealing with management, wrote, "When he took over furniture factory three years ago. Realized almost immediately that it was throwing away at least $100,000 a year worth of wood scrap.

  Compute the optimal price output combination

Assume that the demand for a gas station is given as PD = 2.06 - .00025QD. The marginal cost is $1.31 per gallon. At his current $1.69 price,

  Question about forex market

A 3*9 FRA has an agreement rate of 4.75 percent. You believe 6M libor in 3M will be 5.125 percent. You decide to take a speculative position in a FRA with a $1,000,000 notional value

  Calculate average variable, fixed and total cost

Use the following information of a company's total cost schedules to calculate its average variable cost, average fixed cost, average total cost, and marginal cost schedules.

  Finding output, revenues, costs, and profits

The Alex Corporation uses two inputs, A and B, to produce boats. The production function for boats is given through

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd