How to find profit maximizing quantity from table below?
Quantity
Price
Total Revenue
Marginal Revenue
Marginal Cost
Profit
10
12
120
12
8
25
11
12
12
12
13
12
14
12
How to find profit maximizing quantity from table below?
|
Quantity |
Price |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Profit |
|
10 |
12 |
120 |
12 |
8 |
25 |
|
11 |
12 |
|
|||
|
12 |
12 |
|
|||
|
13 |
12 |
|
|||
|
14 |
12 |
|
Related textbook solutions
Related questions
Chapter 9
What is the profit-maximizing level of output and price?
What is the amount of total profit?
|
Quantity |
Price |
Total Revenue (dollars) |
Marginal revenue |
Total Cost |
Marginal cost |
|
1 |
22 |
6 |
6 |
||
|
2 |
20 |
14 |
8 |
||
|
3 |
18 |
26 |
12 |
||
|
4 |
16 |
44 |
18 |
||
|
5 |
14 |
72 |
28 |
||
|
6 |
12 |
112 |
40 |
||
|
7 |
10 |
166 |
54 |
||
|
8 |
8 |
236 |
70 |
Q7
Marginal cost is
| a. |
total revenue divided by the quantity of output. |
|
| b. |
total profit minus total costs. |
|
| c. |
the change in total cost brought about by selling an additional unit of the good. |
|
| d. |
the change in total revenue brought about by selling an additional unit of the good. |
|
| e. |
the change in total revenue minus the change in total costs. |
4 points
Q8
[Table 1] The dollar amounts that go in blanks (A) and (B) are, respectively,
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| d. |
$11 and $12. |
4 points
Q9
[Table 1] The dollar amounts that go in blanks (C) and (D) are, respectively,
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
$11 and $11. |
|
| b. |
$10 and $10. |
|
| c. |
$10 and $11. |
|
| d. |
$11 and $12. |
4 points
Q10
[Table 1] The demand curve facing the firm represented by the information in this table is
Table-1
|
(1) |
(2) |
(3) |
|
|
Quantity Sold |
Marginal Revenue |
|
$10 |
10 |
|
|
$10 |
11 |
(A) |
|
$10 |
12 |
(B) |
|
$10 |
13 |
(C) |
|
$10 |
14 |
(D) |
| a. |
downward-sloping. |
|
| b. |
upward-sloping. |
|
| c. |
horizontal. |
|
| d. |
vertical. |
4 points
Q11
[Table 2] The dollar amounts that go in blanks (E) is:
Table 2
|
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
|
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
|
|
Price |
Cost |
Cost |
Revenue |
|||
|
$10 |
10 |
80 |
$100 |
$20 |
||
|
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
|
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
|
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
|
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
| a. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| d. |
$11 |
4 points
Q12
[Table 2] The dollar amounts that go in blanks (F) is:
Table 2
|
-1 |
-2 |
-3 |
-4 |
-5 |
-6 |
-7 |
|
Quantity Sold |
Marginal Revenue |
Marginal |
Total |
Total |
Profit |
|
|
Price |
Cost |
Cost |
Revenue |
|||
|
$10 |
10 |
80 |
$100 |
$20 |
||
|
$10 |
11 |
(A) |
8 |
88 |
$110 |
$22 |
|
$10 |
12 |
(B) |
(E) |
97 |
(G) |
(I) |
|
$10 |
13 |
(C) |
(F) |
107 |
(H) |
(J) |
|
$10 |
14 |
(D) |
11 |
118 |
$140 |
$22 |
| a. |
$8 |
|
| b. |
$9 |
|
| c. |
$10 |
|
| d. |
$11 |
QUESTION 17
[Table 2] This firm will maximize its profit if it produces at the point when:
| a. | Profit is maximized. | |
| b. | Total revenue is maximized. | |
| c. | Total Cost is minimized. | |
| d. | All of the above | |
| e. | None of the above |
4 points
QUESTION 18
[Table 2] This firm will maximize its profit if it produces at the point when:
| a. | Profit is maximized. | |
| b. | Marginal cost is equal to marginal revenue | |
| c. | Firm cannot be better off by producing more or less quantity | |
| d. | A quantity of 13 units | |
| e. | All of the above |
4 points
QUESTION 19
[Table 2] This firm will maximize its profit if it produces the following quantity:
Table 2
| -1 | -2 | -3 | -4 | -5 | -6 | -7 |
| Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
| Price | Cost | Cost | Revenue | |||
| $10 | 10 | 80 | $100 | $20 | ||
| $10 | 11 | (A) | 8 | 88 | $110 | $22 |
| $10 | 12 | (B) | (E) | 97 | (G) | (I) |
| $10 | 13 | (C) | (F) | 107 | (H) | (J) |
| $10 | 14 | (D) | 11 | 118 | $140 | $22 |
| a. | $9 | |
| b. | $10 | |
| c. | $11 | |
| d. | $13 | |
| e. | $14 |
4 points
QUESTION 20
[Table 2] If price increases from $10 to $11, this firm will maximize its profit if it produces the following quantity:
Table 2
| -1 | -2 | -3 | -4 | -5 | -6 | -7 |
| Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
| Price | Cost | Cost | Revenue | |||
| $10 | 10 | 80 | $100 | $20 | ||
| $10 | 11 | (A) | 8 | 88 | $110 | $22 |
| $10 | 12 | (B) | (E) | 97 | (G) | (I) |
| $10 | 13 | (C) | (F) | 107 | (H) | (J) |
| $10 | 14 | (D) | 11 | 118 | $140 | $22 |
| a. | $9 | |
| b. | $10 | |
| c. | $11 | |
| d. | $12 | |
| e. | $14 |
4 points
QUESTION 21
A perfectly competitive firm should increase its level of production as long as
| a. | total revenue is less than total cost. | |
| b. | the total revenue curve is rising. | |
| c. | marginal revenue is greater than marginal cost. | |
| d. | the marginal revenue curve is rising. |
