Describe profit maximization in terms of marginal revenue and marginal cost.
Answer to relevant QuestionsExplain what is different between firms in monopolistic competition and firms in oligopoly? What does this difference mean for prices and quantities and for economic profit.A major airline estimates that the demand and marginal revenue functions for first class and excursion fares from New York to Paris are:First Class: P = 4,200 – 2Q MR = 4,200 – 4QExcursion: P = 2,200 – .25Q MR = ...Amazon.com and Apple have recently agreed to sell ebooks for $9.99. Do you think this price reflects marginal cost? Is it too high or too low? Explain.An oil company recently evaluated a proposed investment for improvements in a particular type of refining equipment. According to the analysis, such improvements would require an investment of $15 million and would result in ...What follows is some standard accounting information for each of the firms shown. Can you tell which firm is the most successful?Explain.
Post your question