# Economics Homework -- Maximizing Profits....

• Kyle Jones
In summary, the medical facility is faced with the following information concerning each MRI they provide. Q=2100-.5P MR=4200-4Q TC=400Q+5000 MC=$400. 1. Find profit maximizing level of output (Q*). Find P at Q*.MR = MC4200 - 4Q = 4003800 = 4QQ = 950P = 4200 - 2QP = 4200 - 2(950)P =$2300
Kyle Jones
Hello, I need help with parts 4b-4d and to know if everything I've done is correct.A medical facility is faced with the following information concerning each MRI they provide. Q=2100-.5P MR=4200-4Q TC=400Q+5000 MC=$4001. Find profit maximizing level of output (Q*). Find P at Q*. MR = MC 4200 - 4Q = 400 3800 = 4Q Q = 950 P = 4200 - 2Q P = 4200 - 2(950) P =$23002. What is Total Revenue when the firm produces Q*? What is Total Cost when the firm produces Q*?

TR = PxQ
TR = 2300 x 950
TR = $2,185,000 TC = 400Q + 5000 TC = 400 x 950 + 5000 TC =$385,0003. What is ATC at profit maximizing level of output? What is the firm’s profit?

ATC = TC / Q
ATC = 385,000 / 950
ATC = $405.26 Profit = TR – TC Profit =$2,185,000 - $385,000 Profit =$1,800,0004. Is this a perfectly competitive firm or a non-perfectly competitive firm? WHY?
The firm is a non-competitive firm, because P is not equal to MC. The firm is non perfectly competitive because the MR curve is downward sloping.
a. If this is a perfectly competitive firm what will happen for them to achieve their long run profit position? What is the profit position(s)?

The firm will earn supernormal profits in the shorter run, but long run it will earn normal profits.

b. If this is a monopolistic competitive firm what will happen for them to achieve their long run profit position? What is the profit position(s)?

c. If this is a monopoly what will happen for the firm to achieve their long run profit position? What is the profit position(s)?
d. If this is an oligopoly what will happen for the firm to achieve their long run profit position? What is the profit position(s)?

5. Assume the government places a price control at P=$1500: 1. What kind of price control is this? This is a price ceiling. 2. Give a positive statement concerning this price control. A price ceiling above the equilibrium price has no effect on quantity supplied. 3. Give a normative statement concerning this price control. The price ceiling is too low from the equilibrium price. 4. What will happen to the market when this price control is in place? The price ceiling creates a shortage when the price is below the market equilibrium price. Last edited by a moderator: Kyle Jones said: Hello, I need help with parts 4b-4d and to know if everything I've done is correct.A medical facility is faced with the following information concerning each MRI they provide. Q=2100-.5P MR=4200-4Q TC=400Q+5000 MC=$4001. Find profit maximizing level of output (Q*). Find P at Q*.

Are these
Q=2100-.5P MR=4200-4Q TC=400Q+5000 MC=$400 supposed to be separate statements, to be separated by commas, or be on separate lines, for example? So, do you mean Q=2100-.5P MR=4200-4Q TC=400Q+5000 and MC=$400?

If so, how are we supposed to know what the symbols stand for? I can guess what some of them mean, but I have no idea what is MR, for example.You need to do a better job of explaining.

Yes to answer your first question, I didn't separate them very well.

MR = Marginal Return
TC = Total Cost
MC = Marginal Cost

TR = Total Revenue
Q = Quantity
P = Price
ATC = Average total cost

I'm 90% certain the questions I answered are correct. I'm more concerned with problems 4B-4D. I don't have a clue about those honestly.

## 1. What is the goal of maximizing profits in economics?

The goal of maximizing profits in economics is to increase the revenue generated by a business or organization while minimizing costs and expenses. This allows for a higher return on investment and ultimately leads to increased profitability.

## 2. What are the main factors that affect a company's ability to maximize profits?

There are several factors that can affect a company's ability to maximize profits, including market demand, competition, pricing strategies, production costs, and efficiency of operations. External factors such as government regulations and economic conditions can also play a role in a company's profitability.

## 3. How can a business determine the optimal level of production to maximize profits?

A business can determine the optimal level of production by analyzing various factors such as production costs, market demand, and pricing strategies. This can be done through cost-benefit analysis and finding the point where marginal revenue equals marginal cost.

## 4. What are some common strategies for maximizing profits?

Some common strategies for maximizing profits include increasing sales and revenue, decreasing costs and expenses, implementing efficient production processes, and adjusting pricing strategies. Businesses can also explore new markets and expand their product or service offerings to increase profits.

## 5. How can a business maintain long-term profitability while maximizing short-term profits?

To maintain long-term profitability while maximizing short-term profits, a business should focus on sustainable growth and strategic planning. This includes investing in research and development, maintaining a strong brand and customer loyalty, and continuously adapting to changes in the market. It is also important to have a long-term perspective and not sacrifice long-term sustainability for short-term gains.

• Biology and Chemistry Homework Help
Replies
1
Views
3K
• Biology and Chemistry Homework Help
Replies
1
Views
2K
• Calculus and Beyond Homework Help
Replies
3
Views
6K
• General Math
Replies
4
Views
3K
• Biology and Chemistry Homework Help
Replies
1
Views
3K
• Calculus and Beyond Homework Help
Replies
8
Views
2K
• General Math
Replies
1
Views
6K
• Precalculus Mathematics Homework Help
Replies
8
Views
4K
• General Math
Replies
1
Views
3K
• Math Proof Training and Practice
Replies
46
Views
10K