Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Question: a. When selling e-books, music on iTunes, and downloadable software, the marginal cost of producing and selling one more unit of output is essentially zero: MC = 0. Let's think about a monopoly in this kind of market. If the monopolist is doing its best to maximize profits, what will marginal revenue equal at a firm like this?

b. All firms are trying to maximize their profits (TR - TC). The rule from part a tells us that in the special case where marginal cost is zero, "profit maximization" is equivalent to which of the following statements?

- "Maximize total revenue"

- "Minimize total cost"

- "Minimize average cost"

- "Maximize average revenue"

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92653127

Have any Question?


Related Questions in Microeconomics

Question the initial price of a cup of coffee is 1 and at

Question: The initial price of a cup of coffee is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. a) Calculate the (arc) price elasticity of demand f ...

Question your company is considering whether to retain the

Question: Your company is considering whether to retain the highest-quality raw materials supplier available. Assuming that it really is the best supplier, does this ensure that you will make an economic profit? Explain. ...

Question in 1980 the inflation rate in the us was 125 at

Question: In 1980, the inflation rate in the US was 12.5%. At that time, the consensus outlook claimed inflation could not decline by more than 1% per year. That turned out to be incorrect, as it fell to 3.8% in 1982 and ...

Question suppose you are in charge of a public-health

Question: Suppose you are in charge of a public-health campaign to improve prenatal development in the United States. Due to funding constraints you can only focus on one factor. What factor would be the focus of your ca ...

Question watch the video servant leadership - joe schmitt

Question: Watch the video "Servant Leadership - Joe Schmitt." Discuss why this is a good example of leadership through acts of service in terms of the way the actions of the leader demonstrate integrity and personal char ...

Question again our seller starts with demand q 12 - p and

Question: Again our seller starts with demand Q = 12 - P and marginal production costs of $4 per unit. The seller's transaction cost is $1 per unit, and buyers' are $2 per unit. a. Show that profit-maximizing output is 2 ...

Question the price of licenses for tractors owned by

Question: The price of licenses for tractors owned by farmers who grow X falls. The cost of a license is independent of how many days the tractor is used. Will profits on the typical farm increase by more than, less than ...

Question 1 what is the key difference between the models

Question: 1. What is the key difference between the model's parameters and endogenous variables? 2. What is the difference between endogenous and exogenous variables? The response must be typed, single spaced, must be in ...

Question the lei consumer expectations and ism then napm

Question: The LEI, consumer expectations, and ISM (then NAPM) surveys all predicted a much more robust recovery in 1991-2 than actually happened. What factors intervened to keep real growth at an unusually low rate early ...

Question explain why government budget deficits crowd out

Question: Explain why government budget deficits crowd out private investment spending in a closed economy, but crowd out net exports in a small open economy. Assume prices are flexible and that factors of production are ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved