Marginal Revenue and Marginal Cost Relationship Questions

ch08 Student: ___________________________________________________________________________ 1. You are the manager of a firm that produces output in two plants. The demand for your firms product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. How much output should be produced in plant 1 in order to maximize profits? A. 1 B. 2 C. 3 D. 4 2. You are the manager of a firm that produces output in two plants. The demand for your firms product is P = 78 - 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be charged to maximize profits? A. $20.5 B. $40.5 C. $60.5 D. $80.5 3. You†¦show more content†¦Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is: A. 6. B. 5. C. 7. D. 8. 18. You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The profit-maximizing price is: A. 45. B. 55. C. 60. D. 50. 19. You are the manager of a monopoly that faces a demand curve described by P = 85 - 5Q. Your costs are C = 20 + 5Q. The revenue-maximizing output is: A. .85. B. 9. C. 10. D. None of the answers is correct. 20. You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firms cost function is C = 50 + 3Q2. The profit-maximizing output for your firm is: A. 10. B. 20. C. 30. D. 40. 21. You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firms cost function is C = 50 + 3Q2. Your firms maximum profits are: A. 250. B. 400. C. 450. D. 500. 22. You are the manager of a monopoly that faces a demand curve described by P = 63 - 5Q. Your costs are C = 10 + 3Q. The profit-maximizing output for your firm is: A. 3. B. 4. C. 5. D. 6. 23. You are the manager of a monopoly that faces a demand curve described by P = 63 - 5Q. Your costs are C = 10 + 3Q. The profit-maximizing price is: A. 20. B. 27. C. 33. D. 55. 24. You are the manager of a monopoly that faces a demand curve described by P = 63 - 5Q. Your costs are C = 10 + 3Q. Your firms maximum profits are: A. 0. B. 66. C.Show MoreRelatedMicroeconomy Homework1744 Words   |  7 PagesMicroeconomics - Homework 1 - due 28th January Choose the one alternative that best completes the statement or answers the question Tick off your answer in the table on page 7 – do not forget to write your name Economic concepts and reasoning 1) When the government chooses to increase public spending on domestic security, its choice ________. A) involves a tradeoff with other public services such as education, to allow more domestic security B) illustrates that scarcity does not always exist Read MoreEssay about Marginal Cost and Correct Answer1404 Words   |  6 PagesQuestion 1 5 out of 5 points Economic profit is defined as the difference between revenue and ____. 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