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e. the marginal cost curve above the AVC. 3.What should a profit-maximizing monopolist do if she is currently producing where MR > MC? a. increase output until MR = MC b. decrease output until MR = MC c. shut down in the long run d. keep producing at …
1A) What should a profit maximizing monopolist do if she is currently producing where MC < MR? a. Decrease output until MC = MR. b. Increase output until MC = MR. c. Shut down in the long run. d. Operate only in the short run. e. Keep; Question: 1A) What should a profit maximizing monopolist do if she is currently producing where MC < MR? a.
1, What should a profit-maximizing monopolist do if they are currently producing at an output level where MC > MR? (a) produce more and raise the price. (c) produce less and decrease prices. (d) produce more and decrease prices. 2, Comparing monopoly to perfect competition, which of the following is false?
What should a profit maximizing monopolist do if she is currently producing where MC < MR? Increase output until MC = MR. If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will: restrict output to increase the price even higher.
Another way of thinking about the logic is of producing up until the point of MR=MC is that if MR>MC, the firm should make more units: it is earning a profit on each. If MR
The monopolist will select the profit-maximizing level of output where MR = MC, and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.
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.
The Profit Maximization Rule states that if a firm chooses to maximize its profits, it must choose that level of output where Marginal Cost (MC) is equal to Marginal Revenue (MR) and the Marginal Cost curve is rising.Feb 2, 2022
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.
A monopolist maximizes profits by choosing that output and price at which: marginal cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that the price is greater than the average variable cost, and that the marginal cost is rising at the profit-maximizing output.
A monopolist refers to an individual, group, or company that dominates and controls the market for a specific good or service. This lack of competition and lack of substitute goods or services means the monopolist wields enough power in the marketplace to charge high prices.Jul 4, 2020
The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.
Graphically, profit is the vertical distance between the total revenue curve and the total cost curve. This is shown as the smaller, downward-curving line at the bottom of the graph. The maximum profit will occur at the quantity where the difference between total revenue and total cost is largest.
Wealth Maximization consists of a set of activities that manage the financial resources intending to increase the value of the stakeholders, whereas, Profit Maximization consists of the activities that manage the financial resources intending to increase the profitability of the company.
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