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ElenaW [278]
3 years ago
5

If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that a. ma

rginal revenue exceeds marginal cost. b. marginal cost exceeds marginal revenue. c. total cost exceeds total revenue. d. None of the above is correct.
Business
1 answer:
kvv77 [185]3 years ago
4 0

Answer:

a. Marginal revenue exceeds marginal cost.

Explanation:

<u>Note</u>: <u>The words "profit is not maximized" have been interpreted as, "the firm at current level of output earns profits, but not maximum profits it can earn." The answer provided herein is based upon this assumption.</u><u> </u>

Marginal revenue (MR) refers to the addition to total revenue when an additional unit of output is sold.

Similarly, marginal cost (MC) refers to the addition to total cost of production, when an additional unit is produced.

For an optimal level of production, and as a condition for profit maximization under perfect competition,

MR = MC and the marginal cost should increase post the level of output at which MR = MC.

If a competitive firm operates at a level wherein profits are not maximized, but the firm does earn profits, it indicates the stage of production wherein the marginal revenue exceeds the marginal cost.

Thus, as firm produces more and more units of output, it would reach a stage wherein marginal revenue would equal marginal costs and profits shall be maximized.

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Regardless of quantity in long-run equilibrium, the industry price cannot exceed the?
Crank

An extremely large number of vendors, each of whom makes a comparable or same product, make up a competitive market. The total of all these unique outputs, which each provider produces as a small portion of the market as a whole, represents the production of that industry. This includes dry cleaners, corner stores, barbershops, and florists.

A market that has just one supplier is considered a monopolist at the other extreme. Examples include the fact that the National Hockey League is the only provider of top-notch professional hockey matches in North America, Hydro Quebec is the province of Quebec's sole electricity supplier, and Via Rail is the only provider of passenger rail services between Windsor, Ontario, and the city of Quebec.

Equilibrium: What Is It?

When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or under supply raises prices, which decreases demand.

To learn more about Equilibrium from the given link.

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3 0
2 years ago
"Suppose you wish to have $5,500 in 18 years. Use the present value formula to find how much you should invest now at 6% interes
Irina-Kira [14]

Answer:

The amount of investment should be $1926.891 approximately

<u>Explanation:</u>

The following formula has been used to calculate the amount of investment

A = P(1+r/100) ^n

where: A = future value , P = present value , R = rate of interest , N = time period

Hence , applying the formula, we get,

$5500 = P (1+6/100) ^18

Hence P=$5500/ (1.06) ^18

=$1926.891(approx)

7 0
3 years ago
The total number of points of work a team can accomplish in each scrum period is called? ________.
sasho [114]
Hey there!

The correct answer to your question is "velocity."

The total number of points of work a team can accomplish in each scrum period is called velocity.
Velocity is basically the rate of points you can receive in each course of working.

I hope this helps you.

Have a great day! :)
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4 years ago
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The group with purpose: Centers give students the option to work independently, in groups of their choosing based on interests, or in mixed- or leveled-ability groups. All grouping choices must be deliberate and based on the character and goal of each activity.

Give students meaningful tasks: Centers activities in all subject areas should be engaging, difficult, and, whenever possible, give students a chance to practice skills in real-world contexts. This means that activities should assist students in making connections between their classroom learning and real-world situations or in forming practical habits of mind.

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