MC = MR

Related BrainMass Solutions

• Calculating MC and MR for given functions

  d(Total Revenue)/dQ = 170-10Q d (Profit)/dQ = d(Total Revenue)/dQ - d(Total Cost)/dQ Marginal Profit M(Pi)= MR-MC We are given MR=MC , i.e M(Pi) =MR-MC=0 Put MR = MC 170-10Q = 50+10Q 20Q = 120 Q =6 So, At output level of 6, MC=MQ and

• Long-run perfectly competitive firms

  than MC and minimum ATC, but equal to MR d. greater than MR and MC, but equal to minimum ATC For firms in perfectly competitive industries: Select one: a.

• Follow-Up Question Regarding Solving for Price and Quantity

  What is the formula used to equate MC and MR?

• Marginal Revenue and Marginal Cost Relationship

  price until MR =MC.

• Calculating market share of the given firms

  Firm N will produce 5 million units as after this output level MC>MR. Firm N will produce 6 million units as after this output level MC>MR.

• Price Elasticity of Demands

  They do this by setting MR=MC. It may be the case that MR=MC at the inelastic end of the demand curve. So, the first part could be false.

• how output and price are determined in monopolistically competitive markets

  Monopolies maximize their profit where MC = MR. The difference between MR and MC is the profit per unit. So the profit per unit is decreasing as the difference between MR and MC shrinks (MR - MC.

• Economics - Average Fixed Cost

  MR = MC, they will only produce where MR>MC and they can sell all of it

• Economics - Revenue Maximization

  MR = MC b. MR = 0 c. MR = P d. MR < MC a. MR = MC

• Determining the Optimal Price and Output Combination for an Airline Flying on the Charlotte - Chicago Route

  Business Customers MR=600-2Q MC=$200 Put MR=MC 600-2Q=200 2Q=400 Q=200 P=600-Q=600-200=$400 The airline should charge $400 from business customers.