Marginal Revenue - Competitive Firms

Related BrainMass Solutions

• Calculating profit maximizing output level

  In case of perfectly competitive firm marginal revenue is equal to market price. So, Marginal Revenue at 60th units=$12 b. What level of output should this firm produce in order to maximize profit or minimize losses?

• Profit-maximizing output

  Long term equilibrium under perfect competition: If firms are perfectly competitive, industry is making short term surplus (profits), more firms will enter the industry.

• Marginal Cost

  If Marginal Revenue is 34, the firm needs to produce the quantity where Marginal Cost is also $34 (which is 5 units). c) Profit maximizing level of output is 5 units. At 5 units, Marginal Cost=Marginal Revenue. 3.

• Monopolies, Oligopolies and Market Structure

  cost d. marginal revenue equals marginal cost 5.

• Monopolist and Monopolistically competitive markets

  b. marginal revenue is equal to marginal cost.

• perfectly competitive market, monopolistic market, monopolistic competitive market and an oligopolistic market

  In a perfectly competitive industry the price is determined by the intersection of the marginal cost and demand curve which is also the marginal revenue curve.

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• Marginal Cost Analysis

  Answer 1: At socially efficient levels of output the total Marginal Cost = Marginal Revenue Total Marginal Cost = 10Q + 5Q = 15Q Marginal Revenue = 90 - 2Q Thus at Profit Maximization Level 15Q = 90 - 2Q => Q = 5.29 Answer 2: For a competitive

• firms in compeitive markets

  Revenue = 30 X 15 - (100 + 15^2) = 125. 2) In competitive equilibrium, firms revenue is 0. So we let p be the competitive eq. price.