Answer:
In perfect competition, market demand and market supply determine the price. A firm's total revenue equals the market price multiplied by the quantity sold. As output increases, total revenue increases. But total cost also increases. Because of decreasing marginal returns, the total cost eventually increases faster than total revenue.
-The total number of dollars received by a firm (or firms) from the sale of a product; equal to the total expenditures for the product produced by the firm (or firms); equal to the quantity sold (demanded) multiplied by the price at which it is sold.
A. that if the market price exceeds average cost, profits will be positive. B. that if the market price is below average cost, then profits will be negative. C. total revenues are the quantity produced multiplied by the price. D. whether the firm is earning profit if …
price of the product multiplied by the quantity sold. the law of diminishing returns helps to explain why: marginal cost increases, in the short run, as more output is produced ... refer to figure 6.2 for a perfectly competitive firm. If the price is $4, the profit-maximizing rate of output is: 32 units. Refer to figure 6.2 for a perfectly ...
Total revenueTotal revenue is the total receipts a seller can obtain from selling goods or services to buyers. It can be written as P × Q, which is the price of the goods multiplied by the quantity of the sold goods.
1. When a competitive firm doubles the amount it sells, the price remains the same, so its total revenue doubles.
Marginal cost represents the incremental costs incurred when producing additional units of a good or service. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced.
Total revenue is the price of each unit sold multiplied by the quantity of product sold. Total revenue is what the firm receives in exchange for output sold.
its total cost is less than $9,000. When a competitive firm triples the amount of output it sells, a. its total revenue triples.
Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits.
A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume—they rise as production increases and fall as production decreases.
An economic profit or loss is the difference between the revenue received from the sale of an output and the costs of all inputs used, as well as any opportunity costs. In calculating economic profit, opportunity costs and explicit costs are deducted from revenues earned.
revenue, in economics, the income that a firm receives from the sale of a good or service to its customers. Related Topics: business organization income. See all related content → Technically, revenue is calculated by multiplying the price (p) of the good by the quantity produced and sold (q).
Total revenue, which is the full amount of total sales, is calculated by multiplying the total amount of goods and services sold by their prices. Marginal revenue is the increase in revenue from selling one additional unit of a good or service.
Elasticity means that as the price increases, the total units sold decrease and, as a result, so does total revenue.
Question 2 A firm’s product price multiplied by the total number of items sold is called total revenue A firm’s total revenue is equal to price multiplied by quantity.
charge a lower product price. convert the production process into an “assembly line”. hire fewer workers. Specialization and an assembly line production process will enable a firm to capitalize on economies of scale.
may vary the size of its factory but may not vary the number of workers hired. In the short run at least one input is fixed. Typically the fixed input is capital.
Washburn has four distinct price points for its guitar lines: entry, intermediate, professional, and collectors based on the fact that each line has very different production costs, market demand, and sales level. Thus, Washburn has implemented a _______ pricing objective.
It is the difference between the price and perceived benefits. It is the ratio of profit to total revenue. It is the sum of the fixed costs and variable costs. It is the sum of the list price and incentives and allowances. It is the product of unit price multiplied by the quantity sold.
There is high price transparency in the market of the product.
If a firm's marginal revenue is below its marginal cost, an increase in production will usually
If the demand faced by a firm is inelastic, selling one more unit of output will
c. the marginal revenue curve would shift to the right
d. the firm can vary several inputs in the short run
A) the quantity supplied at any particular price depends on the monopolist s demand curve.
C) The profit maximizing output is the one at which the difference between total revenue and total cost is largest.
For a monopolist, at every output level, average revenue is equal to price.