What will be the profit-maximizing output and price

Assignment Help Microeconomics
Reference no: EM131764347

Questions -

Q1. Olivia's Optimum Olive Oil, Inc., a single-price monopoly, faces the following demand schedule and total cost figures for their premium virgin olive oil

Price

Quantity Demanded

Total Revenue

Marginal Revenue

Quantity Produced

Total Cost

Marginal Cost

$10

0

 

 

0

1

 

8

1

 

 

1

3

 

6

2

 

 

2

7

 

4

3

 

 

3

13

 

2

4

 

 

4

21

 

0

5

 

 

5

31

 

Complete the table above and then use that information to answer the questions which follow:

Q2. What will be the profit-maximizing output and price?

Q3. What will be the amount of total profit at the above price/output combination?

Q4. Draw a diagram showing this profit maximization, being sure to include all relevant graphs and labeling everything, including the profits.

Q5. Compared to a perfectly competitive firm producing olive oil, is Olivia's output decision efficient? Explain your answer.

Reference no: EM131764347

Questions Cloud

What is the firm fixed cost : In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. What is firm's fixed cost
Critical analysis - mastering change management : Evaluate the strengths and weaknesses of the opinions of the author and discuss both the positive and negative points based on your overall judgment
How is the rejection region defined : Discuss how the institutions of government and economy may affect the healthcare institution. How is the rejection region defined.
Discuss most companies prefer to use normal costing : In most cases businesses prefer normal costing instead of assigning actual overhead costs to jobs. Why do most companies prefer to use normal costing
What will be the profit-maximizing output and price : What will be the profit-maximizing output and price? What will be the amount of total profit at the above price/output combination
What does the patient have and why : A patient came to the clinic with fever, loss of appetite and abdominal pain. The lab results came out to be 72% Neutrophil, 4% M, 24% L.
Prepare the journal entry to record valentinis wages : Assuming a 6.2 percent social security tax rate and a 1.45 percent Medicare tax rate
Code for the specific condition : Report the ICD-10-CM code for the specific condition. No unspecified codes are accepted
Theoretical models of change - mastering change management : Discuss your own point of view on how change can be implemented based on your evaluation. Relate your critical analysis to any of the theoretical models

Reviews

Write a Review

Microeconomics Questions & Answers

  Interpret the estimated logit model

What is the probability that a household with an income of 20,000 will own a car? And at an income level of 25,000? What is the rate of change of probability at the income level of 20,000?

  Write down an explanation of the meaning of MC

With two goods, X and Y, what is the utility-maximizing formula - what, in words, is the profit-maximization rule and write down an explanation of the meaning of MC

  In an economy in equilibrium

In an economy in equilibrium, production of the equilibrium quantity of aggregate output demanded generates enough income to purchase that output. aggregate expenditure equals real GDP.

  What is the profit maximization output for this monopolist

What is the profit maximization output for this monopolist? How much total revenue does it earn at this profit maximization level of the output? Suppose that the marginal cost increases to $20. How does total revenue change?

  Name the factors that affect economic development

Name the factors that affect economic development in some countries

  In the 1992 presidential elections ross perot was speaking

in the 1992 presidential elections ross perot was speaking of nafta which both of the other candidates george h.w. bush

  Discuss the problem of equity dilution

The directors of Ace Airlines have decided to incentivize their 1,000 employees by issuing every one of them 200 shares of stock.

  Are data consistent with theory of purchasing power parity

In December 2012, you needed 25 percent more pesos to buy one U.S. dollar than you had needed in December 2002. Over the same time period, the consumer price index in Mexico increased 51.1 percent and the consumer price index in the United States ..

  Consumption function-what is the equilibrium level

Assume the consumption function is C=200+0.75(Y-T), I=100; G=100; T=100. What is the equilibrium level of Y?

  How are exchange rates determined

How are exchange rates determined?  What is the significance of currency devaluations to the home country?  To other countries?

  Risk-free interest rate r

Suppose an individual lives two periods. In period 1 she works full time and makes $100. In period 2 she enters partial retirement and makes $20. She can borrow and save at the constant, risk-free interest rate r.

  Determine the firms profitability

Analyze the differences in costs of production and determine the firm's profitability. Specifically, if market prices change, what does this mean for the profitability of each business?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd