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When profit is maximized in a perfectly competitive firm?
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
How can one determine economic profit by analyzing a graph?
To determine economic profit by analyzing a graph, one can look at the intersection point of the total revenue and total cost curves. Economic profit is calculated by subtracting total costs from total revenue. If the total revenue is higher than total costs, there is economic profit. If total costs are higher, there is economic loss.
What is the relationship between a firm's total revenue profit and total cost?
A firm's total revenue is the total income generated from selling goods or services, while total cost represents the expenses incurred in the production process. Profit is calculated as the difference between total revenue and total cost. Therefore, if total revenue exceeds total cost, the firm earns a profit; if total cost exceeds total revenue, the firm incurs a loss. This relationship highlights the importance of managing costs and maximizing revenue to achieve profitability.
Profit maximization using Total revenue and Total cost approach?
level of output to look at the total revenue and total cost curve directly
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
When profit is maximized in a perfectly competitive firm?
At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
How can one determine economic profit by analyzing a graph?
To determine economic profit by analyzing a graph, one can look at the intersection point of the total revenue and total cost curves. Economic profit is calculated by subtracting total costs from total revenue. If the total revenue is higher than total costs, there is economic profit. If total costs are higher, there is economic loss.
What is the relationship between a firm's total revenue profit and total cost?
A firm's total revenue is the total income generated from selling goods or services, while total cost represents the expenses incurred in the production process. Profit is calculated as the difference between total revenue and total cost. Therefore, if total revenue exceeds total cost, the firm earns a profit; if total cost exceeds total revenue, the firm incurs a loss. This relationship highlights the importance of managing costs and maximizing revenue to achieve profitability.
Profit maximization using Total revenue and Total cost approach?
level of output to look at the total revenue and total cost curve directly
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
Explain how the diminishing returns influences the shape of the variable cost and total cost curves?
how diminishing returns influences the shapes of the variable-cost and total-cost curves
How do you calculate marginal revenue cost by math and graphically and marginal in general?
Profit=Total revenue - Total cost
What is the formula for Total Revenue and Total Cost?
Total revenue equals the sale price of products multiplued by the total amount of units sold
How do you get the total revenue?
Total sales - Cost of goods sold = Revenue
How does a firm calculate its profit?
total revenue minus total cost
The difference between total revenue and total cost?
profit or loss
If the total revenue is 3000 cost of goods is 1500 and total selling expense is 500 what is the profit for the business?
If total revenue is 3000, the cost of goods is 1500, and total selling expense is 500 then the profit made is 1000.
