1. A firm in perfect competition faces the demand function P = $40. This implies that it: [More than 1 correct option] can sell any quantity at $40 a unit can sell some quantity at prices higher than $40 Will have the incentive to "cut" the market and sell at less than $40 Competes with other firms with the same price.
Q: A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costs of MC = 5 +…
A: (a) A perfectly competitive firm produces at P = MC => P = MC => 75 = 5 + 14q => (75 -5) =…
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A: demand function is Pd = 200 - 5Qd and supply function is Ps = 20 + Qs Total surplus is : Consumer…
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A: In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s…
Q: Now lets discuss the short run on the same market. Assume there are 30 identical firms in a…
A: At equilibrium ; MR = MC
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A: Perfect competition consists of a large number of buyers and sellers, having homogeneous products…
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A: Given Cost function of the firm: C(q)=44+3q2 .... (1) Market demand function:…
Q: perfectly competitive firm produce?
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: Equilibrium in the market occurs where demand and supply are equal
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A: Average fixed cost can be calculated by using the following formula.
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A: MR=∆TR/∆Q
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A: 1) Total cost = 72+40Q+0.5Q2 MC = 49+ Q In perfect combination, the marginal cost works as a proxy…
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A: a typical firm in a competitive market produces output where P= MC. for given P=MC derived relation…
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A: Competitive market with QS = 50P – 1000 and the market demand is QD = 2800 – 50P
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A: Q = 130 - P P = 130 -Q MC = AC = 10
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Q: level of output, the
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A: In a perfectly competitive industry there are large number of firms selling identical products.
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A: (a) In a perfect competitive market, firms maximize benefit when Price = MR = MC.
Q: 2. The widget market is characterized by perfect competition. The "inverse" market demand is P = 30…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 67. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical…
A: In a perfectly competitive market, P=MC so keeping P in place of MC: MC=(2/3)Q P=(2/3)Q So, quantity…
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Q: [28] Currently, an industry is operating at a point where price = 20, quantity = 10, slope of the…
A: Given, Price= 20 Quantity= 10 Slope of Demand Curve= - 1 Marginal Cost = 20
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A: Given; Total cost function; C(q)=100-4q+q2 Market price; P= $10 Supply function for competitive firm…
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- Perfectly Competitive market vs duopoly market Suppose the daily demand function of pizza in St Catherines Q^d=2175-5p. For 1 pizza store, the variable cost of making Qpizza per day is C(q)=0.2q^2 – 5q there is a 2000$ fixed cost. There is free entry in the long run a) What is the long run market equilibrium price and quantity in this market? How many firms in the market b) If the marginal cost decreased by 2$ per pizza what is the new short run market equilibrium price and quantity.c) Draw graphs to show the short run and the long run responses of both an individual firm and the market in part b. Now assume the market demand function does not change, consider duopoly market in which the marginal cost of each firm is 35. d) What is the nash equilibrium price and quantity in this Stackelberg model.A5 5. Suppose the market is perfectly competitive. The equilibrium market price P = $20. A consumer's willingness to pay (WTP) is WTP = 30 - q. (a) How much this consumer will buy and wh (b) How much a typical firm will produce the firm's marginal cost MC = 2q. If the average total cost is ATC = q, can you tell if this firm is making positive, negative, or zero economic profit (c) It is assumed here that all firms are identical. In what sense are they identica (d) Suppose now that one firm's marginal cost is: MC = 25/q. Can this industry still remain perfectly competitive? Why not?l?s?y?Type out the correct answer ASAP with proper explanation 1.Assume inverse demand of P = 20 - 0.2Q where P is the market price and Q is the market demand. Also assume that there are 2 firms who both have a marginal cost of 2. (a) In a Cournot context, what is the equilibrium price, market quantity, and profit for each firm? (b) In a Bertrand context, what is the equilibrium price, market quantity, and profit for each firm?
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 −PThere are 9 firms in the market.a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve.b) Give the equation for each firm’s supply curve.the average-total-cost curve at its minimum? What is marginal cost and average totalc) Give the equation for the market supply curve for the short run in which the numbercost at that quantity?1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: 2) A firm that is motivated by self interest should 3) If price is above the equilibrium level, competition among sellers to reduce the resulting 4) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to 5) Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement 6) In a market economy the distribution of output will be determined primarily by 7) In a competitive market economy firms will select the least-cost production technique because 8) Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut…67. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s average cost is TC = 300 + Q2 /3, and marginal cost by MC = (2/3)Q. Suppose there are 10 identical firms in the market. What is the market supply? A. 30Q B. 40Q C. 15Q D. 5Q
- Please answer all 1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred Group of answer choices a. Sunk costs b. Average costs c. Opportunity costs d. Marginal costs 2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? Group of answer choices a. Potential buyers will lose buying power at the dealer b. It may sell the remaining cars at huge discounts to hit the quota c. It creates an incentive to sell cars from different manufacturers d. It would ruin the relationship between dealer and manufacturer…3 In a Cournot market with two firms, the inverse market demand curve is P=50-2Q, where Q=q1+q2(Firm 1’s output is ; Firm 2’s output is ). Both firms have a constant marginal cost of 14. If Firm 2 produces 12 units of output, how much should Firm 1 produce? Group of answer choices 3 6 0 12Suppose that the market for chicken momos is perfectly competitive with ten firms producing momos. Tasty treat is one of the ten price-takers in the market for momos. The accompanying tables show the demand schedule for momos in Dhaka and cost schedule for "Tasty Treat". DEMAND SCHEDULE Price (BDT per plate) Quantity demanded (plate per hour) 10 900 25 675 30 600 40 450 50 300 70 0 COST SCHEDULE OF TASTY TREAT Output (plate per hour) Marginal Cost (BDT per extra plate) Average Variable Cost (BDT per plate) Average total cost (BDT per plate) 40 20 25 90 50 10 10 75 60 30 20 55 70 50 23 50 80 70 35 60 90 85 50 77 a) What is the value of the shut-down price and break-even price for Tasty Treat?How did you figure that out?b) Write down the individual supply schedule of chicken momos for Tasty Treat and the industry supply schedule for chicken momos.c) Plot the market demand and supply curves for chicken momos and find the equilibrium price and…
- Question 1: Assume that apples are produced in a perfectly competitive market. Columbia’s Orchard is a typical firm that grows and sells apples. Currently, Columbia earns zero economic profit, and the market price of apples is $10 per basket. Draw a correctly labeled graph showing Columbia’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled Qc. Answer: 2. Suppose an increase in the popularity of apple, the demand for apple increases. How will the increase in the demand for apples affect Columbia’s economic profit in the short run? Explain. Answer: 3. What will happen to Columbia’s economic profit in the long run? Explain. Answer:Start from a market with perfect competition. For a representative producer, the long-term marginal cost is given by LMC=9Q2−20Q+50LMC=9Q2−20Q+50 and the long-term total cost function is LTC=3Q3−10Q2+50QLTC=3Q3−10Q2+50Q Assume that the price on the market right now is SEK 50. a) How much profit or loss does the producer make in the initial situation? b) Describe in detail what will happen in the market and why c) What will the equilibrium price be? d) how much will our producer produce at market equilibrium?Fill the table below given Perfect Competition Conditions Quantity Demanded/ Produced Total Cost Average Fixed Cost Marginal Cost Average Total Cost Average Variable Cost Total Revenue Price=90 Profit 0 $300 -- -- 1 $310 2 $330 3 $360 4 $400 5 $450 6 $510 7 $580 8 $660 9 $750 10 $850 Calculate the Marginal and Average Costs. Calculate the Total Revenue. Draw the Average, and Marginal cost functions. Draw the Marginal Revenue Curve. Where do they meet and at what level of output? At what level is profit maximized? What are total revenue, total cost and the total amount of profit at that level?