1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NISA [10]
2 years ago
8

The monopoly maximizes profit by setting a. price equal to marginal revenue. b. marginal revenue equal to marginal cost. c. pric

e equal to marginal cost. d. marginal revenue equal to zero
Business
1 answer:
Ksenya-84 [330]2 years ago
3 0

(C) price equal to marginal cost.

Monopoly is a market condition with only one seller of a product where there is barriers to entry of others and presence of no substitutes.

The level of profit is maximised in a monopoly when the marginal cost equal the marginal revenue. They choose an output and price certainly without exceeding the marginal revenue. The price is greater than average revenue of the production and get the profit maximise output.

In case monopoly quantity will be lower and the price will be higher than that of a competitive firm. Marginal revenue can only be zero when the production falls or not have been started yet.

To learn more about monopoly here,

brainly.com/question/5992626

#SPJ4

You might be interested in
both capital and labor​ double, given the production​ function, output will double . If output doubles when inputs​ double, the
Sergeu [11.5K]

Answer:

If output doubles when inputs​ double, the production function will be characterized by​ a <u>constant returns to scale</u>.

Explanation:

In economics, returns to scale refers to a long run situation that reveals to the proportionate change in output when capital and labor inputs become variable or change.

The three possible types of returns to scale are as follows:

1. Increasing returns to scale: This occurs when the proportionate change in output is greater than the proportionate change in capital and labor inputs.

2. Decreasing returns to scale: This occurs when the proportionate change in output is less than the proportionate change in capital and labor inputs.

3. Constant returns to scale: This occurs when the proportionate change in output is the same as the proportionate change in capital and labor inputs.

Based on the above explanation therefore, if output doubles when inputs​ double, the production function will be characterized by​ a <u>constant returns to scale</u>. This is because the the proportionate change (double) in output is the sames as the proportionate change (double) in inputs.

3 0
4 years ago
You are a manager for Herman Millera major manufacturer of office furniture. You recently hired an economist to work with engine
KIM [24]

Answer:

$4000  is the correct answer to the given question .

Explanation:

The marginal cost with compare to the labor can be written as

MC\ = \frac{dQ}{dL} \\MC =\frac{d\ ( 2(K)1/2(L)1/2\ )}{dL} \\\\MC=\frac{\sqrt{K} }{\sqrt{L} }

Here K=9 units  putting this value in the previous equation  we get

MC\ = \frac{\sqrt{9} }{\sqrt{L} }

MC=\frac{3}{\sqrt{L} }

We can find the value of labor by the given formula that are given below

V *MC=\ W\\400\ *\frac{3}{\sqrt{L} }\ =120\\ L=10

From the given question that are mention in question

Q = 2(K)1/2(L)1/2

Putting the value of K and L in the given equation we get

Q\ =2 * \sqrt{9} \ * \sqrt{100} \\Q\ = 60

So profit maximizing output is =$60 chairs as the chairs can be sold for  the $400 each so = $60 * $400 *10=$24000 chairs

As the competitive wage of $120 for 100 units as well as the total of $8,000 on the 9 units of capital equipment

=$20000

Therefore profit-maximizing level of output =$24000-$20000=$4000

6 0
3 years ago
A letter of credit:
torisob [31]

Answer:

d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller

Explanation:

A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A  letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.  

Banks issue a letter a credit against cash or other securities.  Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.

8 0
4 years ago
Marlon wants to save money over a long period of time. He does not need to have easy access to the money, and he is worried abou
Svetlanka [38]

Answer:

A. Bonds.

Explanation:

I majored in Business

3 0
3 years ago
You need $25,000 today and have decided to take out a loan at 7 percent for five years. Which one of the following loans would b
irina1246 [14]

Answer:

Amortize loan woul´d be the best loan

Explanation:

Even though there are no options in the question, the amortize loan coul´d be the best loan, with equal principal payments.

This one is a scheduled periodic payments that are applied to both principal and interests.  This one first pays off the relevant interests expense for the period, and then the payment reduces the principal

4 0
3 years ago
Other questions:
  • Using the tax table, determine the amount of taxes for the following situations: (Do not round intermediate calculations. Round
    5·1 answer
  • Ersatz kreme will sell its filling to hunky donuts only if hunky donuts agrees not to buy filling from other suppliers. this is
    6·1 answer
  • During periods of hyperinflation, prices increase rapidly over short periods of time. One of the worst cases of hyperinflation i
    11·1 answer
  • Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2006, and charged the $4,200 premium t
    13·1 answer
  • Jane, a stock analyst, is giving a sales presentation to a group of clients. She talks about the various investment options avai
    11·2 answers
  • In response to rapidly rising property taxes, California voters approved a statewide ballot initiative, Proposition 13, which fr
    10·1 answer
  • Suppose the initial inflation rate and inflation target are both 2%, that the real federal funds rate is 2%, and that the econom
    5·1 answer
  • Zippy had cash inflows from operations of $78,500; cash outflows from investing activities of $63,000; and cash inflows from fin
    7·1 answer
  • Answer the following questions about the stock you choose to pretend to track:
    11·1 answer
  • WWhich 4 list types can be directly imported into QuickBooks Online from Excel?hich 2 features in QuickBooks Online can help a p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!