Purchase Solution

Profit and Loss

Not what you're looking for?

Ask Custom Question

1. The Global Marketing Group, LLC operates in a monopolistic competitive industry with the following Cost and Revenue data:

Average Total Cost = $5.00; Quantity sold = 5000 Units; Average Revenue = $9.00; Marginal Revenue = $4.00; Marginal Cost = $4.00:

(a) What is the profit maximizing output level for the firm?

(b) What is the Average Profit or Loss for the firm?

(c) What is the Total Profit or Loss for the firm?

Purchase this Solution
Solution Summary

The solution goes into a great amount of detail related to the Profit and Loss question being asked. The solution is very easy to follow along and can be easily understood by anyone with a basic understanding of the concepts. The solution answers all the question(s) being asked in a succinct way. Overall, an excellent response.

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Perfect competition and monopoly comparison using specific examples that include ATC, Quantity sold, price, MC, MR, etc.

    (b) The Average profit or loss is (Price) - (ATC) = $9 - $5 = $4 (It charges the same price for all and on average they cost$5) (c) The Total profit or loss for the firm is the Average Profit * Quantity sold = $4 * 5000 =$20,000 (profit) Using simple

  • concept of monopoly welfare loss

    h) Calculate profit or loss if the firm decided to close the plant in the short run. i) Graph TR/TC and show/explain profit/loss and break even values. j) Graph demand, marginal revenue, average total cost, marginal cost and shade profit or loss.

  • Determining profit maximizing output level

    (b) What is the Average Profit or Loss for the firm? (c) What is the Total Profit or Loss for the firm?

  • net loss from the merger

    Suppose a merger will increase the price to $14 and reduce the total quantity sold from 200 to 150. A. COMPUTE -- What is the consumer surplus [loss] associated with the merger. B. COMPUTE -- What was the profit before the merger? after?

  • Income Statement Preparation

    It discusses profit and loss accounting.

  • Call Put Case Study

    For example, if the stock price is $14 when options expire, stock's profit/loss will be $l4 - $32.25 = - $18.25 (i.e., a loss), long put option's profit/loss will be $25 - $14 - $2.5 = $8.5 (i.e., a profit), and long call option's profit/loss will be

  • Losses/gains on a futures contract

    Calculate your profit/loss in USD on Tue and Wed. See the attached file.

  • Equal Profit/Loss

    The profit/loss will be equal when: 12 * x - 220,000 = 20 * x - 340,000 8 * x = 120,000 x = 15,000 At that level the profit for #65 = -$40,000 (loss of $40,000) and the profit for #66 = -$40,000 (loss of $40,000).

  • Operations Management :Capacity Planning

    Therefore, choose machine A with lower net loss and lower break-even point. The solution explains which machine should be purchased to maximize the profit at given level of output.

  • This addresses the Torvill Construction Company exercise.

    (b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2010, 2011, and 2012. (Ignore income taxes.)

View More Related Solutions