Let the demand facing a firm for its product be expressed by the following functions Q=25-0.5P Where Q=quantity and P=price, and cost function as C=25-2Q+4Q2 Compute a) Profit maximizing output, b) Justify profit maximizing output
The profit maximization is a point where the price is at a level where one finds a balance between demand and supply and price below or above this point will cause an increase in demand or increase in supply respectively.
David Morson
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Profit-maximizing price is found at the quantity where MR=MC, marginal revenue=marginal cost. You will have to graph both marginal revenue and marginal cost and find the point of intersection. That is the profit-max quantity, but then you will have to find its corresponding price. In perfect competition, price=marginal revenue, which is constant, but in an imperfect economy, you will have to find the demand at the profit-max quantity and find the corresponding price from the demand curve.
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
is producing where price exceeds marginal costs
The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.
the point where the marginal cost curve intersects the marginal revenue curve
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
because the Price is Right
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
true
is producing where price exceeds marginal costs
The best way to find the profit maximizing level of to calculate it using the profit maximizing formula. To calculate it you need to know margins and how long it takes you to do each task.
the point where the marginal cost curve intersects the marginal revenue curve
The answer depends on what information you have about profits per units sold, or on the costs and revenues per unit.
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
The monopolist can choose either the price or the quantity, but choosing one determines the other - they come in pairs.
how to calculate profit maximizing water level under quadratic cost function
rational, self interested consumers rational, profit maximizing firms competitive markets with price taking behavior
Yes, the term "not-for-profit" doesn't mean those organizations do not aim at maximizing profits. Just they are not distributing the profits to their shareholders or owners but using the profits to achieve the organizations' goals.