Marginal revenue equals average cost

Assignment Help Microeconomics
Reference no: EM131031371

The profit-maximizing principle of marginal analysis says that firms maximize profits by choosing output such that:


marginal benefit (or revenue) is greater than or equal to marginal cost.
total benefit (or revenue) equals total cost.
price equals the minimum of the average variable cost.

marginal revenue equals average cost.

Reference no: EM131031371

Questions Cloud

Quantity where price is equal to marginal cost : Which of the following statement(s) are true for a perfectly competitive firm that is seeking to maximize profits?The best production choice is at a quantity where price is equal to marginal cost.
Which the firm maximizes : 1.To find the output at which the firm maximizes its profits you MUST know the firm's A. ATC                                       B. AVC C. AFC
Discuss the positioning of boost juice in malaysia : Given the competition from the large number of new market entrants and also the local roadside drinks and juice stalls, develop an appropriate marketing communication strategy for Boost Juice in Malaysia
Legitimate finite probability model : (a) Why is this a legitimate finite probability model? (b) What is the probability that the person chosen is a 15- to 19-year-old who lives with others?
Marginal revenue equals average cost : The profit-maximizing principle of marginal analysis says that firms maximize profits by choosing output such that: marginal benefit (or revenue) is greater than or equal to marginal cost. total benefit (or revenue) equals total cost.
A perfect competition outcome : Price competition in oligopoly leads to a perfect competition outcome . how far is this true?
Assignment of probabilities to the six faces : If a die is loaded so that 6 comes up with probability 0.2 and the probabilities of the 2, 3, 4, and 5 faces are not affected, what is the assignment of probabilities to the six faces?
Different pieces of information in a structured manner : Overview - Linking different pieces of information in a structured manner is important. The simplest way to ensure that your work is structured in such a way is to prepare an essay plan before you start
1 seed is 120$, and farmer may earn 2 bushels of wheat : If 1 seed is 120$, and farmer may earn 2 bushels of wheat from 1 seed, then 5 bushels of wheat from 2 seed and 8 bushels of wheat from 3 seeds then the total cost is increasing in which of the following ways if there are no any fixed cost, a. increas..

Reviews

Write a Review

Microeconomics Questions & Answers

  Identify how the process might differ from a centrally plan

Explain the process or mechanism underlying how a market-based economic system allocates scares resources. Identify how this process might differ from a centrally planned or command economy.

  Explain positive supply shock and negative supply shock

Suppose that the economy is currentlyat potential output. Also suppose that you are an economicpolicy maker and that a college economics student asks youto rank, if possible, your most preferred to least preferred type of shock

  Efficiency in gas pipeline and electricity wires businesses

Critically assess the view that independent regulatory agencies are necessary to achieve the best possible level of efficiency in gas pipeline and electricity wires businesses.

  Solve for the equilibrium input price and final price

Reconsider the "double marginalization" model. Solve for the equilibrium input price and final price when there are N downstream firms compete in Cournot fashion.

  What function were cigarettes best

While watching Stalag 17, consider the unconventional form of money that was being used, namely cigarettes. Describe how cigarettes addressed each of the 3 functions of money.

  The marginal revenue is 300 find the short-run condition

a pure monopolist sells output for 4.00 per unit at the current level of production. at this level of output the

  1 governments in australia are concerned about the high

1. governments in australia are concerned about the high level of house prices?using ideas of consumer and producer

  What is the employment-to-population ratio approximately

In an economy, 20 million people are full-time workers, 5 million are part-time workers, 2 million are unemployed, and 6 million are not in the labor force. Assume that all people in this economy are 16 years or older. What is the employment-to-po..

  Buying and selling of bonds by the central bank

Which of the following refers to the buying and selling of bonds by the central bank?         discounting       reserve requirement changing

  What stable monetary policy has been highly erratic

The velocity of M1 money has moved erratically in the past several years because Answer of low and stable rates of inflation of regulatory changes allowing banks to pay interest on checkable deposits interest rates have been stable monetary policy..

  Find dirks expected utility from prospect

Find Dirks expected utility from this prospect - Compare the variance of the risky prospect with the pooling scheme and without the pooling scheme.

  Define the budget deficit is of tremendous concern

The budget deficit is of tremendous concern and all law makers agree that some measures should be taken to reduce it. However, The Republicans see the issue as a spending problem, while the Democrats see it as a revenue problem.

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