Marginal cost is equal to marginal revenue

Assignment Help Macroeconomics
Reference no: EM13332987

In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is a crucial notion to understand. Without it one can't effectively analyze profits.Does this make sense? Pleas explain

Reference no: EM13332987

Questions Cloud

What are the best investment strategies : What are the prospects for profitable investments infinancial markets? Do markets follow a random walk so that profitsare mostly a matter of chance? Is it possible to outguess themarket? What are the best investment strategies?
Explaimn the assumption of law of diminishingmarginal : Define economics. also explain the use of studyingeconomics as a subject.Q.2. Explaimn the assumption of law of diminishingmarginal utility. also give the exceptions of this law ofdiminishing marginal utility and show the pratical importance ofthis l..
What should be the salvage value of the def model : What should be the salvage value of the DEF model at the end of 10 years so that you would be indifferent between the two models?
What is the peak value of the magnetic field strength : If the electric field in an EM wave has a peak value of 0.45X10^-4 V/m, what is the peak value of the magnetic field strength
Marginal cost is equal to marginal revenue : In economics, when you plot cost and revenue on the Price-Quantity axis, the profit maximization condition is when marginal cost is equal to marginal revenue. This is a crucial notion to understand. Without it one can't effectively analyze profits.Do..
How far up along the hill does she travel before stopping : A woman on a bicycle traveling at 10m/s on a horizontal road stops pedaling as she starts up a hill inclined at 3.0 degrees to the horizontal
How much of the cars weight is supported by the rear wheels : A 1500 kg car is driven onto a pair of ramps so that it fronts wheels have been raised 0.3 m above the rear wheels. How much of the car's weight is supported by the rear wheels
Which model of planned change best suits the david jones cas : Which model of planned change best suits the David Jones case study
What average thermal power is produced as the rock stops : A 20.0kg rock slides on a rough horizontal surface at 5.50 m/s and eventually stops due to friction. What average thermal power (Watts) is produced as the rock stops

Reviews

Write a Review

Macroeconomics Questions & Answers

  Can we conclude that relevant geographic market is larger

A firm, which is the only supplier of a good located in a particular town, is accused of engaging in anticompetitive tactics in order to protect its monopoly position in that town. As part of its defense, the firm has argued that the geographic an..

  What are the two effects of every price change

What are the two effects of every price change Given two goods, "x" and "y", if the price of "x" increases (all else equal), what do each of the effects say will happen to the consumption of "x"? After the change, what can we say about the quantit..

  Rise in ac and mc

Explain why both marginal and average costs are believed to eventually increase in the short run.

  Question about discount rate

Determine what would happen to GDP if a significant number of house spouses who were previously stay home to care for their children began taking jobs and placing their children in day care?

  Ilustrtate what has this got to do with consumer surplus

A typical university football programs requires alumni to join one of several booster club each club gets seats in different parts of the stadium before the person can buy season tickets. Ilustrtate what has this got to do with consumer surplus.

  Why companies oppose laws allowing re-importation of drugs

How does the demand curve faced by a purely monopolistic seller differ from that confronting a purely competitive firm Why does it differ Of what significance is the difference Why is the pure monopolist's demand curve not perfectly inelastic

  Describe the normal reasons why a currency undergoes

Describe the normal reasons why a currency undergoes asignificant depreciation and what were the importantcharacteristics of the Asian countries involved in the crisis?

  Details of investing in market based portfolio

Based on current dividend yields and expected capital gains, expected rates of return on portfolios A and B are 11 percent and 14%, respectively. The beta of A is 0.8, while that of B is 1.5.

  Question about adverse selection and finance

Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.

  Explaining the short run and long run impact

Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.

  Output and supply function of firm and market

What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?

  Illustrate what factors will increase or decrease the level

Illustrate what factors will increase or decrease the level of international capital mobility between one nation and the rest of the world.

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