« previous next »

Author Question: The demand curve and marginal revenue curve for red rubber balls are given as follows: Q = 16 - P ... (Read 22 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
The demand curve and marginal revenue curve for red rubber balls are given as follows:
 
  Q = 16 - P MR = 16 - 2Q
  What level of output maximizes profit?
  A) 0
  B) 4
  C) 5.5
  D) 6
  E) B, C and D all maximize profit.

Question 2

Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza cheese increases (ceteris paribus), what is the expected impact on Ronny's profit-maximizing output decision?
 
  A) Output increases to cover the higher input cost
  B) Output increases because the marginal cost curve shifts upward
  C) Output decreases because the marginal cost curve shifts upward
  D) Output decreases because the price of pizza must also increase


scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

The oxygen isotope curve illustrates the ratio between 16O and 18O. The oxygen isotope curve illustrates the ratio between 16O and 18O.
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
The Radioactive Decay Curve The Radioactive Decay Curve
Look at Table 4.2.2. Consumers learn that the rubber ducks wear out batteries quickly. As a ... Look at Table 4.2.2. Consumers learn that the rubber ducks wear out batteries quickly. As a ...
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Typical bacterial population growth curve showing the initial lag phase Typical bacterial population growth curve showing the initial lag phase
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library