Maximizing Profit Practice- Micro Topic 3.5

Maximizing Profit Practice- Micro Topic 3.5

Assessment

Interactive Video

Created by

Quizizz Content

Business

11th Grade - University

Hard

Mr. Clifford explains perfect competition and profit maximization. The video focuses on practicing the profit-maximizing rule, which is to produce where marginal revenue (MR) equals marginal cost (MC). Using a chart, viewers learn to calculate costs and revenues for a perfectly competitive firm selling oranges. The video emphasizes understanding the relationship between MR and MC, and how to determine the profit-maximizing quantity, total revenue, and profit. Key concepts include marginal cost, marginal revenue, total revenue, and profit calculation.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the profit-maximizing rule in perfect competition?

Produce where total revenue is maximized

Produce where fixed cost is zero

Produce where MR equals MC

Produce where total cost is minimized

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In a perfectly competitive market, what is the relationship between price and marginal revenue?

Price is always higher than marginal revenue

Price equals marginal revenue

Price is always lower than marginal revenue

Price is unrelated to marginal revenue

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a firm sells each unit for $30 and the marginal cost of the sixth unit is $40, should the firm produce the sixth unit?

No, because the marginal cost exceeds the marginal revenue

Yes, because it will increase total revenue

Yes, because the price is higher than the cost

No, because the fixed cost is too high

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is total revenue calculated in a perfectly competitive market?

Marginal cost times quantity

Fixed cost plus variable cost

Price times quantity

Total cost minus profit

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important for a firm to produce where MR equals MC?

To reduce fixed costs

To increase market share

To maximize profit

To minimize losses