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- How does the goal of the firm influence the sales maximization and profit maximization decision.If you want to increase demand for your restaurantbut are unable to lower prices or increase advertising,what steps might you take?Attempts 2. Profit maximization of a seller in a competitive price-searchermarket Consider Unico Doughnut, a doughnut shop in a competitive price-searcher market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 (nuчßno 3.50 3.00 2.50 Q Search Profit Maximizing Outcome Profit
- How do companies make long-run pricing decisions?What kind of business is a travel agency? What problems are solved with the help of a travel agency and how? How does a travel agency fit in the competitive market?Why would good quality second hand cars withdraw from the market? Use economic theory to discuss this
- The total revenue of a fimm decreased after an increase of the price of the goods it sells. Explain why this can happen. Include a graph in your explanation. Indicate price effect and output effect in your graph.As you review the Facebook site, you note that packagingfor your company’s bread uses the words “heart-healthy.”Would you bring this to the attention of the marketing groupresponsible for product packaging? Or would you look fora way to obscure the package design online? Defend youranswer.Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product? A. dresses B. thread C. sewing machines
- The following graph shows Crest's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. Use the black point (plus symbol) to indicate Crest's profit-maximizing output and price. (?) Price, Cost, Revenue Demand ATC O True MR Quantity of Crest Toothpaste True or False: Crest's profit is positive. + Profit MaxDraw a diagram to indicate the profit-maximizing level of output, the profit-maximizing price, and the size of the profit.How a firm maximize it's profit?