Its profit maximizing price and output levels

Assignment Help Business Economics
Reference no: EM131112888

Which of the following statements is true?

(A) The MC curve of a profit maximizing firm must increase and cuts its MR curve from above at the firm's maximum output

(B) The MC curve of a profit maximizing firm lies below its MR curve then rises and cuts its MR curve from below at its profit maximizing price and output levels

(C) The MC curve of a profit maximizing firm must decline and cuts its MR Curve from above at the firm's profit maximizing output level

(D) none of the above

Reference no: EM131112888

Questions Cloud

Willingness to pay price for romantic novel : (Evadney's willingness to pay price for a romantic novel is $50 but she pays $20 for the book, the difference between the indicated prices represents her) Suppose Evadney's reservation price remains unchanged as in #Q64 above but the actual price she..
Determining the undertaking in the face : The national debt has now exceeded 18 trillion dollars. Is fiscal policy that adds to the deficit worth undertaking in the face of so much debt?
Restrict media coverage of terrorist attacks : Should the government be able to regulate or restrict media coverage of terrorist attacks? Why or why not - should the public always have a right to know of existing terrorist threats? Why or why not?
Would be liable for nicole torts or criminal acts : Whether or not CARDWARE Inc. would be liable for Nicole's torts/criminal acts if she is considered to be an independent contractor. Be sure to note the difference in outcome if she is determined to be an employee.
Its profit maximizing price and output levels : The MC curve of a profit maximizing firm must increase and cuts its MR curve from above at the firm's maximum output. The MC curve of a profit maximizing firm lies below its MR curve then rises and cuts its MR curve from below at its profit maximizin..
View of fdi as domestic job export : Outward FDI: Some Americans feel that U.S.-based firms should not undertake FDI in other countries because it results in expanding business opportunities in those countries and does not benefit the United States. What is your position on this view..
What are effects of placing universal binding minimum wage : What are the effects of placing a universal binding minimum wage on a labor market that is otherwise perfectly competitive? What are the effects if the minimum wage is not universal (that is if there is a sector of the labor market not covered by the..
Summary for the current and future strategy : In this assignment we will talk about Starlink company in Qatar as communications and media retail and logistics business also as outercourse for Ooredoo Qatar to hiring employees. The summary for the current and future strategy must be explained a..
Represent a corporate strategic change : Explain how the introduction of the 365 store chain represent a corporate strategic change. What business challenges will Finance have to address following the introduction of the 365 store chain?

Reviews

Write a Review

Business Economics Questions & Answers

  Two identical firms have access to a spring

Two identical firms have access to a spring. Their marginal cost of bottling water from the spring is a constant 10¢ per bottle. The market demand for bottled spring water is P = 250−20Q, where P is the price (in cents per bottle) and Q is the quanti..

  Perfect complements and draw an indifference curve map

For each of the following pairs of items, say if they are perfect substitutes, imperfect substitutes, or perfect complements and draw an indifference curve map.

  Firm in perfectly competitive market will produce no output

A firm in a perfectly competitive market will produce no output in the short run if the price is below $20 but will produce if the price is above $20. The smallest quantity they will produce in the short run is 6. Firms will earn 0 economic profits i..

  Represent an example of perfect competition

In your opinion, does the Houston Medical Center, in which many hospitals gather, represent an example of perfect competition, monopolistic competition, collusive oligopoly.

  Solve for the amount of labour and capital in each industry

Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..

  Agreement was unenforceable

Population growth in developing nations has proceeded at unprecedented rates ower the past few decades.

  Income inequality increased to its highest level

Discuss whether each statement is an example of positive economics or normative economics or if it contains elements of both: an increase in the personal income tax will slow the growth rate of the economy.

  Proposed project make sense at a discount rate

Suppose Mayor Emanuel proposes a project that will cost $200,000 today, $100,000 next year and 15,000 to dispose of it in ten years when the project is completed. Once finished three years from today, it is expected to generate a net income of 40,000..

  Would the typical firms demand curve be price inelastic

Assume that the skateboard industry is monopolistically competitive. Assume that skateboard manufacturers are earning short-run economic profits. At the profit maximizing price you identified in part a, would the typical firm’s demand curve be price ..

  Determine her utility maximizing quantities

Assume Hailey's Utility Function is U = x^2 y . The price of X is $8 per unit and the price of Y is $2 per unit. Her income is currently $240 / month. Determine her utility maximizing quantities of x and y. Suppose the price of X goes down to $4 per ..

  Describe if the demand for the following products is price

Describe if the demand for the following products is price elastic or price inelastic, and explain your answer.

  Discuss how aim be only to keep the structural deficit zero

If you were desinging such an amendment, do you think it would be better to require that the actual budget deficit be kept at zero each year, or should the aim be only to keep the structural deficit at zero? Discuss.

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