1. Suppose a firm sells its output for P=20 - Q1000 Where Q is the quantity it produces and sells. Total costs is given by TC=5000+4Q What is the profit maximizing value for
Q: 3. Assume a firm is facing the market demand curve: q = 100-2p, its total cost function is: c(q) =…
A: Here, market demand curve and total cost function of a firm is given.
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A: Quantity Total Revenue($) Total Cost ($) Profit = TR - TC ($) 0 0 2 -2 1 6 5 -1 2 12 9 3 3…
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A: Given: Total Cost of two plants are as follows: TC1=5Q1+0.1Q12TC2=2Q2+0.1Q22 Demand function:…
Q: 4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its…
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Q: 2. Suppose a firm faces demand of Y = 300 – 2P and has a total cost curve of TC = 75Q + Q². a. What…
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A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
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Q: Points) Suppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2.. TC1 = 10Q1 + Q12 . TC2…
A: Pm=80-0.5Qm MR= 80-Qm TC=30+TC 1+TC2 TC1=10Q1+Q1^2 MC1=10+2Q1 Q1=0.5MC1-5 TC2=10Q2+0.5Q2^2 MC2=10+Q2…
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A: Average fixed cost can be calculated by using the following formula.
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Q: Suppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2.. TC1 = 10Q1 + Q12 . TC2 = 10Q2 +…
A: * SOLUTION :- * Given that, Pm = 80 - 0.5Qm TRm = Pm x Qm = 80Qm - 0.5Qm2 MRm = dTRm/dQm…
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A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: 1. Suppose a company has demand function given by q = 220- 4p and a cost function C(q) = 1525 + 12q.…
A: Given: Demand function: q= 220 - 4p Or, p = 220/4 - (1/4)q p = 55 - 0.25 q Cost = 1525 + 12q…
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- c) Assume that the market price for bagel services is 42 and store produces 30 units of the bagel. Calculate theprofit level. Is the store profit maximizing? Explain your answer. d) Go back to part c) and assume that there are 100 identical bagel store in the market. Determine the market supply curve. (You will obtain total market quantity, Q, as a function of price,P). Are elasticities of individual firm supply and market supply curves different? e) Given the market supply curve you have calculated in part d), now assume that market demand forhairdressers are given by Q=2900-50P. Find the equilibrium price and quantity in the market. Does the marketequilibrium correspond to long-run equilibrium? ExplainProfit equals revenue minus cost. We have looked at costs. We now turn to revenue. Let us assume that firm S is a price In other words, it faces a (i) downward-sloping / horizontal (ii) demand curve / supply curve (Delete as appropriate.) Let us assume that it faces a market price of £2 per unit for its product. What is its total revenue from selling: (i) 5 units? ................................ (ii) 8 units? ................................ (c) What shape is its total revenue curve? ....................................................................................... (d) What will be its marginal revenue from selling: (i) the fifth unit? ................................ (ii) the eighth unit?…usiness EconomicsQ&A LibraryTwo firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in the industry that manufacture this product. Their marginal cost (MC) is equal to their average cost (AC) and it is constant at MC = AC = X, for both firms. Market demand is given as Q = Y – 2P (where P = price and Q = quantity). Select any value for X between [21 – 69] and any value for Y between [501 – 999]. Using this information, calculate the Industry Price, Industry Output, Industry Profit, Consumer Surplus and Deadweight Loss under each of the following models: (a) Cournot Model Two firms A and B produce an identical product (Note: Industry Output = Q). The firms have to decide how much output qA and qB (Note: qA = Firm A Output; qB = Firm B Output) they must produce since they are the only two firms in…
- Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Identify the price at which the firm breaks -even. Explain. Identify the price at which the frim shuts-down. Explain.5. The market demand for leather handbags is given by the function P = 75 - 1.5Q. P is priceper handbag, and Q is output per time period.The market supply is given as P = 25 + 0.50Q. A typical competitive firm that markets thistype of bag has a marginal cost of production of MC = 2.5 + 10q. [4]a) Calculate the market equilibrium price for the bags as well as the output rate in themarket.b) Calculate how much the typical firm will produce per time period at the equilibriumprice.c) If all firms had the same cost structure, how many firms would compete at theequilibrium price computed in (a) above?Suppose that over the short run (say the next 5 years), demand for OPEC oil is given by P = 165 – 2.5q. Here q is measured in millions of barrels a day. OPEC marginal cost per barrel is $15. What is OPEC’s optimal level of production? What is the prevailing price of oil at that level? Many experts contend that maximizing short-run profit is counterproductive for OPEC in the long run because high price reduces buyers to conserve energy and spur competition and new exploration that increases the overall supply of oil. Suppose that the demand curve just described will remain unchanged only if oil prices stabilize at $65 per barrel or below. If oil price exceeds this threshold, long run demand (over a second five year-period) will be curtailed to P = 135 – 2.5q. OPEC seeks to maximize its total profit over the next decade. What is the optimum output and price policy? (assume all values are present values)
- 1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.Suppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand curve for this product is Demand: QD = 120 – P where P is the price and Q is the total quantity of the good.Currently, there are 9 firms in the market. a. What is each firm’s fixed cost? What is its variable cost?Give the equation for average total cost. b. Graph average total cost curve and the marginal cost curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…If a market has few barriers to entry and manyfirms, how might firms still have positive economic profit? Describe a strategy a firm in thistype of market might use to maintain economicprofits
- 4. Suppose the market demand and supply functions are QD = 58,200 – 310P and QS = 90P - 1400. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product. a. Determine the equilibrium price and quantity in this market. b. You’ve researched and found that most firms in the market currently experience costs such that TC = 220 + 210Q – 4.1Q2 + 0.06Q3. Determine whether or not you should enter this market. Use graphs to support your answer. (Remember that you can Format Axis and change the Minimum and Maximum Bounds of your axes to “zoom in” to a graph in Excel.) c. Due to unforeseen delays, you don’t enter the market. However, a year later the market supply has changed to QS = 90P + 3400. Are you surprised at this shift in supply? d. Given the new supply conditions, determine whether or not you should enter the market.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.e) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm’s profit.f) In the long run with free entry and exit, what is the equilibrium price and quantity in thid market. Is there incentive for firms to enter or exit? h) In this long-run equilibrium, how much does each firm produce? How many firms are in the market?You’ve been given a firm’s production and cost functions:p = 132 −2qMC = 12 + 4q(a) Assume this firm is in a perfectly competitive market. Calculate the equilibrium price andquantity.(b) What is the firm’s profit here?(c) Assume this firm is in a monopoly market. Calculate the equilibrium price and quantity.(d) What is the firm’s profit here?(e) Give an example of a perfectly competitive agricultural market, and give an example of amonopoly agricultural market.
