1) There are 1000 pear producers that have identical cost functions, where q is the number of crates of pear produced. The producers operate in a perfectly competitive market. The supply curve of each producer is _______ The total supply curve for the market is _______ At a price of 100, the elasticity of supply for the market is _______ , meaning that supply is _______. (see image for answer options) 2) A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2 To maximize its profit, the firm chooses to produce q=___________. The profit of this firm is $_____________
1) There are 1000 pear producers that have identical cost functions, where q is the number of crates of pear produced. The producers operate in a perfectly competitive market. The supply curve of each producer is _______ The total supply curve for the market is _______ At a price of 100, the elasticity of supply for the market is _______ , meaning that supply is _______. (see image for answer options) 2) A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2 To maximize its profit, the firm chooses to produce q=___________. The profit of this firm is $_____________
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1) There are 1000 pear producers that have identical cost functions, where q is the number of crates of pear produced. The producers operate in a
The supply curve of each producer is _______
The total supply curve for the market is _______
At a
(see image for answer options)
2) A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2
To maximize its profit, the firm chooses to produce q=___________. The profit of this firm is $_____________
Transcribed Image Text:q=0
q=10P
q=20p
Q(P) = 0
Q(P) = 10,000P
Q(P) = 20,000P
0
1
infinite
unit elastic
inelastic
elastic
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