Question: Draw a perfectly elastic demand curve on top of a
Draw a perfectly elastic demand curve on top of a standard U-shaped average total cost curve. Now add in the marginal cost and marginal revenue curves. Find the profit maximizing point, MR = MC. Indicate the firm’s total revenues and total cost.
Answer to relevant QuestionsThe demand function is Q = 100 – .5P. The cost function is TC = C = 100 + 60(Q) + (Q)2 a. Find MR and MC.b. Demonstrate that profit is maximized at the quantity where MR = MC.c. Derive the relationship between marginal ...Draw a demand curve for a firm with market power. Portray the situation where the firm is earning economic profits. Now illustrate what occurs as entry occurs and rivals begin competing with that firm.Magazines are sold both through newsstands and subscriptions. Advertising accounts for up to one-half of the revenues of magazines like Time and Sports Illustrated. How should a publisher determine the price of subscriptions ...Haven’t there always been “knowledge” workers, people who do more than what a robot could do? Why then is such a big deal made of the “knowledge economy” and the “knowledge worker” in recent years?Capital markets enable us to spend large sums of money that don’t belong to us? Would it be necessary to create an internal capital market if a firm was to be led by market based management? Explain
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