7.2: Profit maximization.
Lindsey's marginal revenue from the second bear is $_____.
16.0
Lindsey's profit-maximizing price is $_____.
16.0
How many teddy bears should Lindsey produce?
4.0
In the example in the text, Dean's marginal revenue from selling the 40,000th bushel of corn is $_____.
4.0
n the example in the text, if Dean's ATC at the optimal level of output was $3.20, his (profit/loss) ______ Word AnswerWrite your response here would be $ ______
Profit / 40000.0
Marginal cost is the cost of producing _____.
d. an additional unit of output
In the example in the text, if Dean's farm produces the 40,001st bushel of corn, its total revenue will _____ and its profit will _____.
d. increase; increase
In the example in the text, if Dean's ATC at the optimal level of output was $4.20, his (profit/loss) _______ would be $______
loss / 10000.0
If Lindsey produces her optimal quantity of teddy bears, her (profit/loss)_______ will be $ _____
loss / 28.0
In the example in the text, if Dean's farm produces its 50,002nd bushel of corn, its total revenue will _____ and its profit will _____.
a. increase; decrease
A perfectly competitive firm's profit-maximizing level of output is where _____.
b its marginal revenue equals its marginal cost
When a perfectly competitive firm's marginal cost is decreasing, selling an additional unit of output _____ its profit.
b. always increases
Marginal revenue is the revenue received from selling _____.
b. an additional unit of output
Suppose a perfectly competitive firm is producing 100 units of output facing diminishing marginal returns. Its marginal cost equals the market price where 95 units are produced. If the firm increases its output from 100 to 105 units, its total revenue will _____ and its profit will _____.
b. increase; decrease
We can calculate a firm's profit as _____. (Check all that apply.)
b.TR - TC e.(P − ATC)×Q
If the demand curve facing a firm is horizontal, its marginal revenue _____.
c. equals the market price
If Lindsey increases her output from 2 to 3 teddy bears per day, her total revenue will _____ and her profit will _____.
c. increase; increase