U.S. firms collectively devote the largest portion of their total R&D spending to Multiple Choice о о о innovation and diffusion. applied research (pursuing invention). basic scientific research. financing start-up firms.
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- The table below presents the production quantity, total revenue, and total cost of a company in its production process. Using the Excel program, you make a graph that represents the total income and total cost. Determines the level of economic gain or loss for eadch production level. Identifies the point where the gain is maximized. Identifies which of the four market structures studied this example belongs to. Explain your answer in a paragraph of at least five sentences. Quantities in production Total income Total cost 0. 0. 27.23 1 36 55.69 21 72 81.68 3. 108 105.19 144 123.75 180 141.08 216 155.93 252 174.49 8. 288 198.00 9. 324 226.48 10 360 259.88 396 303.19 11 12 432 371.25 13 468 445.50 504 536.25 14 15 540 605.00 OFocus 5:48 AM ds English (United States) ) G ESP 2/23/202 4. 5.Not for profit hosptials, do they eliminate the need to have a for-profit hosptial?Distinguish between technical efficiency and economic efficiency
- Homework(Ch 15) 4. Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per can) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 MC 0 0.5 ATC 1.5 MR 1.0 2.0 2.5 3.0 QUANTITY (Thousands of cans of beer) 3.5 4.0 + Monopoly Outcome OL Profit Loss a I' nExplain manufacturing firms should use demand leading instead of demand trailing capacity strategy.Table 15-4 Price per Dose $80 72 Quantity Demanded (dose) 0 1 2 3 4 5 6 24 7 16 8 Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 15-4 shows the demand and the total cost schedule for the firm. 64 56 48 40 32 Total Cost of Production (dollars) $80 Refer to Table 15-4. What is the amount of Shakti's profit? $68 $72 $124 $192 82 88 100 124 164 208 268 340
- Student Resources Working at Clayton.... 3/3 practice Gigantic Pharmaceutical Corporation has a patent on a prescription drug, making it the only manufacturer of that prescription drug. Gigantic is currently earning a positive economic profit. (a) Draw a correctly labeled graph for Gigantic and show each of the following. (i) The profit-maximizing quantity, labeled QG (ii) The profit-maximizing price, labeled PG (iii) The average total cost curve, labeled ATC (iv) The area representing the consumer surplus, shaded completely (b) Suppose the demand for the prescription drug increases, and Gigantic hires its warehouse workers in a perfectly competitive labor market. (i) What will happen to Gigantic's demand for warehouse workers? Explain. (ii) What will happen to the wage rate Gigantic pays its warehouse workers and the number of warehouse workers it hires? (c) After Gigantic's patent expires, another firm enters the prescription drug market and produces an identical drug that sells for…QUESTION 11 Use the following graph to answer questions 33 & 34. Price and cost $40 30 23 20 10 0 MR MC 150 200 AR=D ATC ATC Quantity per day Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC. Before the innovation reduced the cost (i.e., ignore ATC), the firm's maximum economic profit was SO ⒸS30 $750 $1,500 $3,000 54,500How does managerial economics help to assess operational issues faced by private business firms.
- Shakti Inc. has been granted a patent for its arnica toothache balm. The table to the right shows the demand and the total cost schedule for the firm. What is Shakti's profit minus maximizingoutput? A. 4 units B. 6 units C. 7 units D. 5 units Price per dose (Dollars) Quantity Demanded (Dose) Total Cost of Production (Dollars) $80 0 $80 72 1 82 64 2 88 56 3 100 48 4 124 40 5 164 32 6 208 24 7 268 16 8 340Distinguish between accounting profit and economic profit. Provide examples to support your answer.?The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 a) At the price of $2.20 per ice tea, what is the firm’s profit maximizing level of output? Why is this the profit maximizing level of output for the firm? b) If the market price is $8 per ice tea and the firm is producing six (6) ice tea per hour, is the firm maximizing profit or not? Why or why not? If the firm is not maximizing profit, what should it do to maximize profit? c) At the price of $8 per ice tea, what is the firm’s profit-maximizing level of output? Why is this the profit maximizing level of output? What is the firm’s economic profit at…