This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Figure 13-15 to answer the following questions. a. What is the profit-maximizing output ... (Read 67 times)

appyboo

  • Hero Member
  • *****
  • Posts: 527
on: Jun 29, 2018
Refer to Figure 13-15 to answer the following questions.
 
  a. What is the profit-maximizing output level?
  b. What is the profit-maximizing price?
  c. What is the average total cost at the profit-maximizing output level?
  d. What area represents the firm's profit?
  e. At which output level are economies of scale exhausted?
  f. Does this graph most likely represent the long run or the short run? Why?

Question 2

Music writer Anthony Kuzminski praised rock star Tom Petty in a 2007 article in the online Unrated Magazine. Kuzminski wrote: Something Petty never can get enough credit for is his fan-friendly attitude.
 
  He kept ticket prices for his concerts at 50 when other acts this summer are charging upwards of 100 for stadium gigs. Petty could charge more, but he doesn't see the point. He has stated time and time again he still makes millions when he's on the road, regardless of his ticket prices. He is the last of the fan friendly rock stars out there. Use economic reasoning to write a rationale for Tom Petty's decision to charge prices for his band's (Tom Petty and the Heartbreakers) concerts that are less than market clearing prices.
  Source: Anthony Kuzminski, Tom Petty & The Heartbreakers at the Vic Theater http://www.unratedmagazine.com/


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zacnyjessica

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 29, 2018
Answer to Question 1

a. The profit maximizing level of output is Q4.
b. The profit-maximizing price is P4.
c. The ATC at the profit-maximizing output level is P2.
d. The firm's profit is represented by area P2P4ed.
e. Economies of scale are exhausted at output Q3.
f. Since the graph displays a profit, it most likely represents the short run.

Answer to Question 2

Tickets to Tom Petty's concerts consistently sell at prices lower than tickets to concerts by other well-known rock bands. This means that he and the Heartbreakers earn lower profits in the short run but his actions ensure the loyalty of concert goers, and profits, in the long run.


appyboo

  • Member
  • Posts: 527
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Recombinants are meiotic output different from meiotic input Recombinants are meiotic output different from meiotic input
Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco. Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco.
When the exhaust is lean, the output of a zirconia oxygen sensor is below 450 mV. When the exhaust is lean, the output of a zirconia oxygen sensor is below 450 mV.
Inferring Productivity from Data on Output and Factor Accumulation Inferring Productivity from Data on Output and Factor Accumulation
How much voltage does the resistor drop in Figure 10-2? How much voltage does the resistor drop in Figure 10-2?
What is the total resistance of the circuit in Figure 1? 150 What is the total resistance of the circuit in Figure 1? 150
Video: Conduction of action potentials

For a complete list of videos, visit our video library