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A monopolist will set its production at a level where marginal cost is equal to?
A monopolist will set production at a level where 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.
What is the relationship between marginal revenue and marginal cost in determining the optimal level of production for a firm?
The relationship between marginal revenue and marginal cost in determining the optimal level of production for a firm is that the firm should produce at a level where marginal revenue equals marginal cost. This is because at this point, the firm maximizes its profits by balancing the additional revenue gained from producing one more unit with the additional cost of producing that unit.
When a firm produces a level of output on the production function?
Marginal physical product is zero
At the most profitable level of production a firms marginal cost will be the market price?
equal to
What is a level of production in which the marginal production decreases with new investment?
diminishing marginal returns
What level at which the marginal production goes up with new investment?
The level at which marginal production goes up with new investment is generally referred to as the point of diminishing returns. Beyond this point, each additional unit of investment yields a smaller increase in output or productivity. This occurs as resources become more scarce or inefficiently allocated, resulting in a decrease in the marginal return on investment.
A monopolist will set its production at a level where marginal cost is equal to?
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
How can capital durability eventually decrease the level of investment?
How can capital durability eventually decrease the level of investment?
What does profit maximizing quantity of output mean?
Its the level of production where marginal cost is equal to marginal revenue.
What is the relationship between marginal revenue and marginal cost in determining the optimal level of production for a firm?
The relationship between marginal revenue and marginal cost in determining the optimal level of production for a firm is that the firm should produce at a level where marginal revenue equals marginal cost. This is because at this point, the firm maximizes its profits by balancing the additional revenue gained from producing one more unit with the additional cost of producing that unit.
WHAT IS production equilibrium?
Production equilibrium occurs when a firm produces a level of output where marginal cost equals marginal revenue. At this point, the firm maximizes its profit, as any increase or decrease in production would lead to lower profits. In a broader economic context, it can refer to a state where supply equals demand, resulting in stable prices in the market. This equilibrium ensures that resources are allocated efficiently in the production process.
When a firm produces a level of output on the production function?
Marginal physical product is zero
At the most profitable level of production a firms marginal cost will be the market price?
equal to
What is the marginal revenue of capital?
The marginal revenue of capital refers to the additional revenue generated from employing one more unit of capital in the production process. It is an important concept in economics, as it helps firms determine the optimal level of capital investment. If the marginal revenue of capital exceeds the cost of using that capital, firms are incentivized to invest further; if it falls below that cost, they may reduce their capital investment. Ultimately, it helps in assessing the efficiency and profitability of capital utilization.
What is the relationship between marginal cost and marginal revenue in determining optimal production levels?
The relationship between marginal cost and marginal revenue in determining optimal production levels is that a company should produce at a level where marginal cost equals marginal revenue. This is because at this point, the company maximizes its profits by balancing the additional cost of producing one more unit with the additional revenue generated from selling that unit.
What level is marginal cost reaching a minimum?
Marginal cost reaches a minimum at the output level where the additional cost of producing one more unit equals the additional revenue generated from that unit. This typically occurs when production is optimized, often associated with the lowest point on the marginal cost curve. Beyond this point, increasing production leads to higher marginal costs due to factors like diminishing returns. Therefore, finding this minimum level is crucial for maximizing profitability.
