Profit maximizing level of output

Reference no: EM1370230

Suppose that a perfectly competitive company is currenly producing 5,000 units of output and is earning $10,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. Is this firm producing the profit maximizing level of output? How do you know?

Reference no: EM1370230

Questions Cloud

Write program which permits the user to enter students name : Write the program which permits the user to enter students' names followed by their test scores and outputs following information (suppose that maximum number of students in class is 50)

Explain what is the role of leadership in the development : Explain What is the role of leadership in the development and implementation of strategic choice

Revise the scrambled paragraph for clarity and flow : Revise the scrambled paragraph for clarity and flow - An audience-centered approach involves understanding and respecting the members of your audience and making every effort to get your message across in a way that is meaningful to them.

Merits and demerits of industrial ecosystem : Suppose you're a city planner working on new industrial park and contemplating the use of industrial ecosystem. Describe the major advantages and disadvantages of industrial ecosystem which you would consider in making your decision.

Profit maximizing level of output : Suppose that a perfectly competitive company is currenly producing 5,000 units of output and is earning $10,000 in total revenue.

Explain some research and come up with a real example : Explain some research and come up with a real example of how effective decisions can positively impact the business

Explain method for combining two trees-heap-order property : Assume two binary trees, T 1 and T 2 , hold entries satisfying heap-order property. Explain method for combining T 1 and T 2 into a tree T whose internal nodes hold union of entries

Business problem from professional work experience : Business problem from your professional work experience - Find a business problem from your own professional work experience or literature-articles from newspapers, business journals, business magazines, etc.

Find the profit maximizing price and level of production : Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2

User Account

All Pages