Why do firms produce where MR = MC? Why not at the lowest point on their ATC
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
This important idea the MR MC rule to profit maximization was first introdu...View the full answer
Answered By
BETHUEL RUTTO
Hi! I am a Journalism and Mass Communication graduate; I have written many academic essays, including argumentative essays, research papers, and literary analysis. I have also proofread and written reviews, summaries and analyses on already finished works. I am eager to continue writing!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
The diagram below shows a monopolist's MC and ATC curves as well as the industry demand and MR curves. a. What is the profit-maximizing price and level of output for the monopolist? b. What area in...
-
The MC curve intersects the AVC and ATC curves at their respective minimum points. 1. State the average-marginal rule. 2. Draw a graph depicting the relationships between MC, ATC, and AVC.
-
Why does the MC curve cut the ATC curve at the latters lowest point?
-
Table illustrates the quantities, marginal costs, average variable costs, and average costs of a competitive firm. Refer to table 4. How much is the unit profit at price =$30? [the problem is based...
-
Referring to the article and other sources which help explain new technology such as Whatis.com (www.whatis.com) explain how .NET and XML can help improve supply chain management.
-
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for...
-
Solve the following boundary value problem: \[y^{\prime \prime}(x)=f(x), \quad y(0)=0, \quad y(1)=0\] Hence solve \(y^{\prime \prime}(x)=x^{2}\) subject to the same boundary conditions.
-
David Ricardo of Iron Law, Inc. claims that he meets the company standard of spending an average of no more than $ 8 a day on business lunches. As company auditor, you take a random sample of 12 of...
-
Term Debt The Company has outstanding Notes, which are senior unsecured obligations with interest payable in arrears. The following table provides a summary of the Company's term debt as of September...
-
The post-closing trial balance for Heron Consulting Services, inc, at December 31 of the prior year is presented here. The company respond the following transactions during the current year: January...
-
If you were an entrepreneur in a perfectly com petitive market, would you attempt to innovate? Why or why not?
-
Why is the perfectly competitive firm's long-run supply curve identical to its marginal cost curve lying above its ATC?
-
Cynthia Andrade asks for your help in constructing a CVP graph. Explain to Cynthia (a) How to plot the break-even point, and (b) How to determine the level of activity and dollar sales at the...
-
Due to competition, Durango is considering lowering the unit sales price by 12% next year and increasing fixed marketing expenses by $60,000. If these changes are made, how many units must be sold...
-
On October 1, 2022, Deebo Mfg. got a 12-month loan of $400,000, bearing interest at 10% per year. Interest is payable in full at maturity on September 30, 2023. In connection with this loan, how much...
-
If f(x) = (4x-5)4 (3x + 6), find f'(x) using logarithmic differentiation.
-
What is (f ) '(0)?
-
Consider the following T-account for Accounts payable. Accounts Payable Debit Credit 10,500 8,800 4,800 ? Balance Compute the ending balance of the Accounts Payable account.
-
Porter & Sons is evaluating three different machines to be used in its workshop to polish marble. All three of the machines are equally risky. The cost of capital of Porter & Sons is 15%. The initial...
-
F.(3e* -2x 3 sin(2x)) is equal to 2 3 Cos 8. IT 3, t (4+@ 2 3, 1+o 1 4 Cos 4 4 1 3. 1 +4cos V7 (1+o 4 1 4 Cos 4 1+0 4-
-
For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a. required textbooks or mystery novels b. Beethoven recordings or classical music...
-
Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: a. As the price of tickets rises from $200 to $250, what is the price elasticity...
-
Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. a. if the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the...
-
Let f RR satisfy (0) = 1, f(1) = 2, f'(1) = -1, (3) = 0 and f'(3) = 0. (a) Approximate f(2) using a Hermite interpolating polynomial. (b) If C5 (R) and |(5)| is bounded by 4 estimate the error in (a).
-
[2 - JP - 2. GivenA = 30, B = { } [51] Is AB defined? Calculate AB. Can you calculate BA? Why? (20 pts)
-
1. In August 2013, a bank was offering 0.62% interest on its savings account, with interest reinvested daily. Assuming this rate of return continued for six years, how much would a deposit of $4,000...
Study smarter with the SolutionInn App