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What is marginal profit?
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
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.
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
What is marginal profit?
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
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.
The level of profit maximizing output is reached when marginal cost is?
equal to marginal revenue
A perfectly competative firms marginal cost exceeds its marginal revenue at its current output To increase its profit the firm will?
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point
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.
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
The equality of marginal revenue and marginal cost is essential for profit maximization in all market structures because if?
Marginal revenue and marginal cost are equal, any other output level will result in reduced profit.
When can monopolist earn an economic profit?
A monopolist earns economic profit when the price charged is greater than their average total cost. To maximize profits, monopolies will produce at the output where marginal cost is equal to marginal revenue. To determine the price they will set, they choose the price on the demand curve that corresponds to this level of production.
How can marginal revenew and marginal costs help set the most profitable putput level?
The most profitable output level is when marginal costs equals marginal revenue. When marginal revenue is larger than marginal cost, that means that more product can be produced for more profit.
When a perfectly competitive firm is at its profit maximizing level of output you can say that it is?
is producing where price exceeds marginal costs
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
A manager urgues that output should be expanded so long as average revenue exceeds average cost Does this make sense to you?
This strategy is incorrect because they should decide the optimal quantity on the marginal revenue and marginal costs rather than the average revenue and average costs. It may not hold that the average revenue being higher than the average cost would lead to profits for the firm. To decide if they should produce an additional product, the firm should consider the additional cost involved with the production of this extra cost and the additional revenue incurred from the sale of this product. If this marginal revenue exceeds the marginal cost, then the firm should produce that additional unit. This decision is to be taken at all levels of output, and the firm should produce until the point where MR=MC.
