Question Details

[answered] Background Profit maximization is the assumed goal of the f


Background

Profit maximization is the assumed goal of the firm. That is, the firm?s goal is to maximize profits subject to its costs. Market structures such as Competition, monopoly, monopolistic competition and oligopoly all have the goal of profit maximization and these markets can also be identified by their characteristics.

Table 1

Characteristics

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Few of sellers

Identical Product

Free entry & exit

Long run zero economic profit

Market power; ability to influence price & output

Product differentiation

Downward sloping demand curve

Many sellers

Single seller of product with no close substitutes

Mutual interdependence & Strategic Pricing

Price takers


Instructions: Table 1 above, contains distinguishing characteristics of four market structures covered in this course.

Question 1 Place an X in the column space provided that corresponds with each market structure. (Note, some characteristics may apply to more than one market structure).

(20 points)

.

Assessment codes CT, VC

Table 2

Quantity

Price

Total Revenue

Marginal Revenue

Total Cost

Marginal Cost

0

$15

0

$8

----

1

14

14

14

11

3

2

13

26

12

16

5

3

12

36

10

26

10

4

11

44

8

39

13

5

10

50

6

57

18


Question 2. Instructions. Answer the questions below

a) From Table 2 above, complete the missing values for total revenue (TR) Marginal revenue (MR,) and marginal cost (MC) (20 points)

b) From your completed table values in question a) above, find the profit-maximizing level of output. (10 points)

c) From Table 2 above, fully explain how the ATC (average total cost) data would enable you to find the per unit profit at the profit maximizing level of output. (10 points)

Assessment Codes CT, VC, WC & EQS,

Question 3 Instructions: Answer the graphing questions in the space below

a) From table 2, Graph price, quantity, marginal revenue and marginal cost curves.

(20 points)

b) What is price at the profit maximizing level of output (show on the graph)? (10 points)

c) Calculate the average total cost at all levels of output, and use the information to show the per unit profit at profit maximizing level of output. (10 points)

Assessment Codes CT, VC, EQS


Background

 

Profit maximization is the assumed goal of the firm. That is, the firm?s goal is to maximize

 

profits subject to its costs. Market structures such as Competition, monopoly,...

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001005432.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now