Megatron is a competitive firm operating under the following conditions: Price of output is $15, the profit maximizing level of
1 answer:
Answer:
Firm should be shut down in short run
Explanation:
We have given price of output = $15
Total economic cost = $650000
Total number of units for maximizing profit level = 40000
So average economic cost
As the average economic cost is greater than price of the output
So firm should be shut down in short run
Answer will be firm should be shut down in short run
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Answer:
a. Marginal Revenue = 5
b. Maximum profit = $144
c. Q optimum = 12 ; P optimum = $17
d. Social cost = $72
Explanation:
Step 1. Given information.
- MC=AC=5
- P=29-Q
Step 2. Formulas needed to solve the exercise.
- Total Revenue=TR=P*Q=(29-Q)*Q=29Q-Q2
- Marginal Revenue=dTR/dQ=29-2Q
Step 3. Calculation.
Set MR=MC for profit maximization
29-2Q=5
2Q=29-5
Q=12 -----profit maximizing output
P=29-Q=29-12=$17 -------profit maximizing price
Total Profit=(P-AC)*Q=(17-5)*12=$144 ------Maximum Profit
Lerner's Index=(P-MC)/P=(17-5)/17=0.7059
<h2></h2><h2>TAKE A LOOK TO THE ATTACHED IMAGE</h2>Profit is shown by rectangular shaded area.
Socially optimal price P=MC=$5 --------Socially optimal price
We know P=29-Q, Set P=5
5=29-Q
Q=24 ---------Socially optimal output
Social Cost is equal to dead weight loss. It is shown by triangular area DWL
Social Cost=1/2*(17-5)*(24-12) =$72
Answer:
forced distribution
Explanation:
Based on the rest of the sentence it can be said that the missing term is forced distribution. This is a system that requires managers to evaluate each individual and rank them typically into one of three categories. These categories are excellent, good, and poor and allow managers to indicate if the employee should be terminated, is doing good, or is in-line for promotion as indicated in the graph below. This term is also known as the vitality curve or bell curve.
