Complete Table 2 At what point will Turing will be at the most efficient point o
ID: 1189718 • Letter: C
Question
Complete Table 2
At what point will Turing will be at the most efficient point of production?Is it producing at this level?Why or why not?
What is the optimum point of production from the monopolist point of view ?How do you prove it? What are the net revenues at which profits are maximized?
Will the monopolist’s profit decrease in the long run ? What conditions will need to prevail for the monopolist to extract excessive economic profits?Explain.
(1) Quantity per day, Q (given) (2) Price (3) Total revenue, TR (4) Total cost, TC (5) Average total cost, ATC (6) Marginal cost, MC (7) Marginal revenue, MR (8) Net revenue, NR 0 $16 25 1 15 35 2 14 41 3 13 45 4 12 47 5 11 50 6 10 53 7 9 58 8 8 67 9 7 79 10 6 100Explanation / Answer
As per the given details company would make good profits when its able to poduce 6units per day on net revenue basis. As per the given question there are no details shared about at what volume they are planning to produce.
From a monopolist point of view no one in the market would be avalible to servive due to monopolist advantage. To be a monopolist you need to meet the customer/clients deamand at lower cost of funds, in the present scenario we need to produce 7units per day as we are able to meet the demand with lowcost of funds i.e 8.28perunit
Net revenue for 7units will lead to maximize profit per unit, yes in the long run monopolist may not work as the mafacturer is faing loss in both the cases i.e when he is producing very less or very high units, he is able to make prfit at the intermediate level, hence to maintain this he shouldn't be monopolist.
1) Quantity per day, Q (given) (2) Price (3) Total revenue, TR (4) Total cost, TC (5) Average total cost, ATC Average Revenue (6) Marginal cost, MC (7) Marginal revenue, MR (8) Net revenue, NR 0 $16 $0 25 $16 25 ($9) $0 1 15 $15 35 35 ($20) 17.5 ($3) ($20) 2 14 $28 41 20.5 ($7) 13.66667 $0 ($13) 3 13 $39 45 15 ($2) 11.25 $2 ($6) 4 12 $48 47 11.75 $0 9.4 $3 $1 5 11 $55 50 10 $1 8.333333 $3 $5 6 10 $60 53 8.833333 $1 7.571429 $2 $7 7 9 $63 58 8.285714 $1 7.25 $2 $5 8 8 $64 67 8.375 ($0) 7.444444 $1 ($3) 9 7 $63 79 8.777778 ($2) 7.9 ($1) ($16) 10 6 $60 100 10 ($4) 9.090909 ($3) ($40)Related Questions
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