Exam 8: Profit Maximization and Supply

Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q² + 2q + 30 MC = .2q + 2 If P = 6 the profit-maximizing level of profits is

If the demand faced by a firm is elastic,selling one less unit of output will

If price is equal to short-run average variable cost,this price is known as

If an unregulated electric company is a monopolist,faces demand of Q = 100 - 50P,and has constant total costs,the profit-maximizing level of output is ?

Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?

If a firm's marginal revenue is below its marginal cost,an increase in production will usually

Suppose a farmer is a price taker for soybean sales with cost functions given by ? TC = .1q² + 2q + 30 MC = .2q + 2 If P = 6 ,the profit-maximizing level of output is

Suppose a farmer is a price taker for soybean sales with cost functions given by ? TC = .1q² + 2q + 100 MC = .2q + 2 The firm's supply curve is given by

If demand is inelastic,marginal revenue will be

The markup pricing technique involves determining the selling price of a good by adding a profit markup to minimum average cost.This would result in maximum profits only if