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The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
How does a monopolistically competitive firm determine its profit-maximizing price?
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
What is the profit maximizing point on the graph for this particular business model?
The profit maximizing point on the graph for this business model is where the marginal revenue equals the marginal cost.
How can one determine the profit maximizing output from a table?
To determine the profit-maximizing output from a table, look for the quantity where the marginal revenue equals the marginal cost. This is the point where the firm maximizes its profit.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
How does a monopolistically competitive firm determine its profit-maximizing price?
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
What is the profit maximizing point on the graph for this particular business model?
The profit maximizing point on the graph for this business model is where the marginal revenue equals the marginal cost.
How can one determine the profit maximizing output from a table?
To determine the profit-maximizing output from a table, look for the quantity where the marginal revenue equals the marginal cost. This is the point where the firm maximizes its profit.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
How do you find a monopolist's profit maximising...?
The monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.
The price charged by a profit-maximizing monopolist occurs at?
the point where the marginal cost curve intersects the marginal revenue curve
Why is the profit maximizing point when MRMC?
The profit-maximizing point occurs when marginal revenue (MR) equals marginal cost (MC) because at this point, the additional revenue gained from selling one more unit is equal to the additional cost of producing that unit. This ensures that the firm is maximizing its profits by producing the optimal quantity of goods or services.
Explain the relationship between marginal cost marginal revenue and profit?
Given that P=R-C where P is profit, R revenue and C cost, it follows that marginal profit dP/dQ = dR/dQ-dC/dQ where P,R and C are all functions of the output Q. Maximizing profit means setting dP/dQ = 0. Then dR/dQ = dC/dq where dR/dQ and dC/dq are marginal revenue and marginal cost respectively.
How do you achieve the profit maximizing price?
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
Where will A profit maximizing firm produce?
Where the marginal benefits equal marginal costs.
Why is profit maximized when marginal revenue equals marginal cost?
Profit is maximized when marginal revenue equals marginal cost because at that point, the additional revenue gained from selling one more unit is equal to the additional cost of producing that unit. This balance ensures that the company is making the most profit possible, as any further increase in production would result in higher costs than revenue gained.
