4. At the profit-maximizing level of output, a monopolist will always operate where: A. Price is greater than marginal cost B. Price is greater than average revenue C. Average total cost equals marginal cost D. Total revenue is greater than total cost
May 17, 2017 · Question 9 1 / 1 pts At the profit-maximizing level of output, a monopolist will always operate where: Price is greater than marginal cost Correct! Price is greater than average revenue Average total cost equals marginal cost Total revenue is greater than total cost Since the demand curve for a Monopolist is downward sloping, the MR curve will fall below the Demand …
1. At the profit-maximizing level of output, a monopolist will always operate where. A. Price is greater than marginal cost B. Price is greater than average revenue C. Average total cost equals marginal cost D. Total revenue is greater than total cost
At the profit-maximizing level of output, a monopolist will always operate where: A. price is greater than marginal cost. B. price is greater than average revenue. C. average total cost equals marginal cost. D. total revenue is greater than total cost. 1. Only a 2. Only b 3. Only c 4.
The profit-maximizing quantity will occur where MR = MC—or at the last possible point before marginal costs start exceeding marginal revenue. On Figure 4, MR = MC occurs at an output of 4. The monopolist will charge what the market is willing to pay.
The level of output that maximizes a monopoly's profit is when the marginal cost equals the marginal revenue.
A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost). Maximum profit is the level of output where MC equals MR.
A monopolist maximizes its profits by producing to the point at which marginal revenue equals marginal cost. The monopolist then charges the maximum price for this amount of output, which is the price that consumers are willing to pay for that quantity of output.
A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.
The profit-maximizing choice for a perfectly competitive firm will occur where marginal revenue is equal to marginal cost—that is, where MR = MC. A profit-seeking firm should keep expanding production as long as MR > MC.
Profits are therefore maximized when the firm chooses the level of output where its marginal revenue equals its marginal cost. To illustrate the concept of profit maximization, consider again the example of the firm that produces a single good using only two inputs, labor and capital.
Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns. Influential factors such as sale price, production cost and output levels are adjusted by the firm as a way of realising its profit goals.
In economics, profit maximization is the short run or long run process by which a firm may determine the price, input and output levels that lead to the highest profit. Neoclassical economics, currently the mainstream approach to microeconomics, usually models the firm as maximizing profit.
Profit maximization occurs where the marginal cost curve intersects the marginal revenue curve, and this is at an output of 6.
A rule that says profit is maximized by producing the quantity of output at which the marginal revenue of the last unit produced is equal to its marginal cost. at which the marginal revenue of the last unit produced is equal to its marginal cost. That is, MR = MC at the optimal quantity of output.
1. The profit maximizing level of output for a single-price monopolist occurs where MR = MC. The linear demand curve P = 100 – Q has a marginal revenue of MR = 100 – 2Q. By equating marginal revenue and marginal cost (100 – 2Q = 2Q) we get a quantity of 25.