# What is the maximum amount of profit the firm can earn?

What is marginal reven Show more Question Refer to the following table showing a monopolists demand schedule: What is marginal revenue for a price decrease from \$50 to \$40? Question 1 options: \$9000 \$24000 \$30 \$20 \$40 Question A monopoly is producing a level of output at which price is \$80 marginal revenue is \$40 average total cost is \$100 marginal cost is \$40 and average fixed cost is \$10. In order to maximize profit the firm should Question 2 options: produce more. keep output the same. produce less. shut down. Question 3 A manger of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of \$1800. The firm employs a single variable input labor which costs \$600 per worker each week. In order to maximize profit the manager should hire ________ workers per week. Question 3 options: 9 10 12 18 Question 4 A firm with market power faces the following estimated demand and average variable cost functions: where Qd is quantity demanded P is price M is income and PR is the price of a related good. The firm expects income to be \$40000 and PR to be \$2. Total fixed cost is \$100000. What is the estimated demand function for the firm? Question 4 options: Qd = 71000 500P Qd = 39000 200P Qd = 39000 500P Qd = 40000 200P Question 5 A monopolistic competitor is producing a level of output at which price is \$200 marginal revenue is \$100 average total cost is \$210 marginal cost is \$100 and average variable cost is \$180. In order to maximize profit the firm should Question 5 options: increase output. keep output the same. decrease output. shut down. Question 6 Refer to the following figure: The above graph shows the demand and cost conditions facing a price-setting firm. What is the maximum amount of profit the firm can earn? Question 6 options: -\$180 -\$80 \$60 \$120 none of the above Question 7 A firm with market power faces the following estimated demand and average variable cost functions: where Qd is quantity demanded P is price M is income and PR is the price of a related good. The firm expects income to be \$40000 and PR to be \$2. Total fixed cost is \$100000. What is the estimated marginal revenue function for the firm? Question 7 options: MR = 48 0.002Q MR = 78 0.002Q MR = 78 0.004Q MR = 48 0.004Q Question 8 A firm with market power faces the following estimated demand and average variable cost functions: where Qd is quantity demanded P is price M is income and PR is the price of a related good. The firm expects income to be \$40000 and PR to be \$2. Total fixed cost is \$100000. What is the profit-maximizing choice of output? Question 8 options: 8000 units 10000 units 12000 units 16000 units 0 units the firm shuts down Question 9 Refer to the following table showing a monopolists demand schedule: If price falls from \$20 to \$10 then Question 9 options: MR = -\$10 and demand is inelastic. MR = \$10 and demand is elastic. MR = \$30 and demand is elastic. MR = -\$30 and demand is inelastic. none of the above. Question 10 Refer to the following figure: The above graph shows the demand and cost conditions facing a price-setting firm. When output is 50 units what will happen to total revenue if the firm sells another unit of output? Question 10 options: Total revenue will increase \$13.50. Total revenue will increase \$11.00. Total revenue will increase \$9.00. Total revenue will increase \$6.00. none of the above. A manger of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of \$1800. The firm employs a single variable input labor which costs \$600 per worker each week. In order to maximize profit the manager should hire ________ workers per week. Show less

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