1. What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] 2. If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only]
Q: 1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its…
A: Since you posted multiple questions, we will provide the answer for first one questions.
Q: In principle, how do we determine a perfectly competitive firm's profit-maximizing output and…
A: Perfect competition refers to the type of market structure in which there are many buyers and…
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: Deadweight Loss occurs when the demand are supply are not in equilibrium which creates a market…
Q: Question 1c. Why does price equal marginal revenue for the perfectly competitive firm? What is the…
A: The perfect competition is the market condition in which there are many buyers and sellers in the…
Q: 17. When a firm in a perfectly competitive market has marginal revenue of $25,000 and receives total…
A: Total Revenue=Average Revenue×QuantityAverage Revenue=Total RevenueQuantity
Q: The graph illustrates an average total cost (ATC) curve (also sometimes called average cost),…
A: A maximizing seller will choose a quantity where its marginal revenue is exactly identical to its…
Q: 12) Below are the graphs of the Price(x), Revenue(x), Cost(x) and Profit(x) functions from above.…
A: The revenue refers to the amount that a firm gets on selling a certain amount of output at a given…
Q: Discuss the importance of price elasticity of demand, income elasticity of demand and cross price…
A: Since you have posted multiple questions we are answering, only the first one, repost the remaining…
Q: The following table displays the average cost of pr6U sagood at Output (units) Average Cost (5) 940…
A: Long run Average cost curve (LRAC) LRAC is also known as Planning curve. It shows the minimum total…
Q: Below is the demand schedule for wholesale pallets of ice cream. Assume that the marginal cost of…
A: The solution of part 1 is required to solve the further parts. So, it would be required to be…
Q: Question 1: An automobile repair shop charges the competitive market price of $16 per bike repaired.…
A: Short run total cost function : TC = Q3/3 Original Price = 16 As the firm is working under a…
Q: Given P = 300 + 200Qs (demand equation), P = 6300 − 50Qd (supply equation), and TC = 500 + 10Q +…
A: P = 300 + 200Qs (demand equation) P = 6300 − 50Qd (supply equation)
Q: To calculate total revenue, a perfectly competitive firm Select one: O.A. divides price by quantity…
A:
Q: A firm operates in a perfectly competitive market. Its marginal cost = to its marginal revenue. It…
A: Given marginal revenue= marginal cost, there would be three cases in perfect competition: One where…
Q: Complete the following table and identify the profit-maximizing output. What is true about marginal…
A: The total revenue can be calculated by simply multiplying the price with the level of quantity. The…
Q: Explain the statement " the existence of extra-normal or economic profit will ensure their…
A: Extra-normal or economic profit is that situation when there is a positive profit. That means if the…
Q: Consider the perfectly competitive spice market. At the equilibrium price, the elasticity of market…
A: Given:- Elasticity of Supply(Es)=1.45 Elasticity of Demand(Ed)=0.67 Increase in Price=4% To…
Q: Your first assignment is to determine the demand curve and the marginal revenue curve for the new…
A:
Q: 1. Consider a profit-maximizing firm that manufactures bolts in a perfectly competitive market and…
A: Here, the given graph shows the price, quantity and cost curves of a bolt manufacturing firm, which…
Q: мсо 15 If a firm faces a downward-sloping demand curve and aims to maximise total sales revenue, it…
A: Total sales revenue is the product of price and quantity sold.
Q: What is Marginal Revenue equal to for a firm in a competitive market?
A: The revenue that results when there is an increase in revenue from the sale of one additional output…
Q: Consider the perfectly competitive spice market. At the equilibrium price, the elasticity of market…
A: SOLUTION
Q: Question 2: The demand function equation faced by PTCL for its computers is given by: P = 50,000 -…
A: here we calculate Marginal revenue equations and calculate the quantity and price when revenue will…
Q: Donald is a producer in the perfectly competitive market for cronuts - a pastry that is half…
A: Here we calculate the market price per coconut at when Donald profit is maximized so by using the…
Q: 6. A firm's short-run cost curves for producing gizmos are shown below. MC ATC AVC D=P=MR=AR q1…
A: Constant-cost market is a market where the firms are the price takers and no firm in the industry…
Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What…
A: Total Revenue: Whole revenue refers to the total amount of money a vendor may make by selling goods…
Q: Star Inc. is a firm selling its product in a perfectly competitive market. The market price is $10.…
A: A perfectly competitive firm is a price taker as there are large number of firms selling identical…
Q: If the firm operates in a perfectly competitive market, and the market price is $25 per unit, what…
A: A seller operating under competitive conditions will sell a level of output where it extricates its…
Q: Use the following information to answer Questions 1 and 2. The perfectly competitive market for…
A: Short-run equilibrium price: P=89 Short-run equilibrium market quantity : Q=8370…
Q: 2. List the features that characterize a perfect competitive market.
A: 2. Feature of perfect competition market:- * Large number of buyers and sellers. * homogeneous/…
Q: he table below shows the price and cost information for a firm that operates in a perfectly…
A: Perfect competition is the market structure in which there are large number of buyers and sellers…
Q: 2. The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q =…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What…
A: Perfect competition is a market structure featuring more number of sellers and buyers in the market,…
Q: Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC…
A: Average Total Cost (ATC): - it is the average value of total cost by producing a specific unites of…
Q: This table shows price and quantity produced for a single firm in a perfectly competitive market.…
A: In perfectly competitive market, there are many buyers and firms and with no barriers to entry.…
Q: Consider this profit-maximizing firm competing in a perfectly competitive market with a market price…
A: When there are many buyers and sellers, there is perfect competition. At prices set by the market,…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $100…
A: (a) A perfectly competitive firm produces at P=MC in short run. C = 60 + 12Q + 2Q2 Differentiate C…
Q: In a perfectly competitive market demand function of a good is QD = -30P + 5490 = 20P + 1140 and…
A: Given : Qd = -30 P + 5490 Qd = 20 p + 1140 TC = Q3 - 12 Q2 + 60 Q
Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal…
A: 1,000 Identical firms SMC = 3 + Q P = 12 - 2Q/1,000
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- Padico , Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which of the following is a key activity that the proposed control system should perform? a. performance measurement b. corporate governance c. organizational structuring d. organizational planning Clear my choiceSuppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420. What is the accounting profit for the firm described above? Just give equation formula.E1 Agroscience Company, Cypress, TX manufactures a certain product with estimated variable costs, per unit, V =0.10Q – 40 and aggregated fixed costs of $40,000. The price-quantity demand relationship for this product is P = −0.5Q + 900, where P is the unit sales price of the product and Q is the annual quantity demand. ● Total cost = Fixed cost + Variable cost ● Revenue = Quantity Demand × Price ●Profit = Revenue − Total cost a) Develop the equations for total cost and total revenue. b) Find the breakeven quantity. c) What profit is earned if i) total cost is minimized and ii) total revenue is maximized? d) Which of the strategy will be better for the company to adopt to optimize their profit, is it to minimize total cost or maximize total revenue? Give reason for your choice. e) What is the company’s maximum possible profit?
- Please no written by hand and no emage Suppose that a company that makes and sells hand-crafted artwork has a cost function C(x) = 24x + 300, where x is the number of items made, and a revenue function R(x) = 45x, where x is the number of items sold. What is the profit from the 28th item made and sold? There is a $ sign listed next to the answer box, so do not type a $ sign in your answer.Answer the following questions using the details from the attachment. Please clearly show all workings, including formula where applicable. i. How many S21 would the firm be required to produce and sell to recordtotal revenue of zero? ii. Write an algebraic expression to represent the profit function for the firm.Management believes it can sell a new product for $8.50. The fixed costs of production are estimated to be $6,000, and the variable costs are $3.20 a unit. Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Loss) 0 500 1,000 1,500 2,000 2,500 3,000 Determine the break-even level using the above table and use the following Equation to confirm the break-even level of output. PQB = FC + VQB PQB - VQB = FC QB (P-V) = FC QB = FC P-V What would happen to the total revenue schedule, the total cost schedule, and the break-even level of output if management determined that fixed costs would…
- How did GE lose $507 billion (more than 85 percent) of its market valuation since its peak? What went wrong?The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent). a) Marginal revenue when x= 100 b) Average profit when x= 500SITUATION: You are thinking about becoming a Paradise Coffee franchisee. Franchisees are offered a business specializing in producing an exclusive line of exotic coffee drinks (similar to Starbucks). Franchisees have had good success in towns without a Starbucks (Paradise franchises gross $220,000 sales on average per year, and you believe you can gross as much, too). You will have to pay Paradise Coffee, Inc., a franchise fee of $3,000 a year plus 2.5% of gross sales. You will also pay an annual National advertising fee of 3% of gross sales. Paradise requires that you use their logo-imprinted goods (plates, cups, napkins). They are purchased in bulk from Paradise and will cost you $40,000 per year. You also have to use their special Paradise Roast coffee beans, which cost $12.00 per pound. You estimate you will use 400 pounds of beans a year. Other food ingredients (syrups, biscotti, whipped cream, soft drinks, etc) will cost $18,000 a year. You will have to hire three…
- A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C� = 3.69 - 0.007999Q� + 0.000005359Q2�2 + 25.0X1�1 (3.69) (3.08) (3.42) (3.50) where C� = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q� = output; measured by total assets ($ million) X1�1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Holding constant the effects of bank branching (X1�1), what is the level of total assets that minimizes the average operating expense ratio? $746.31 million $1,562.70 million $1,492.63 million $461.31 million What is the average operating expense ratio for a savings and loan association with the level of total assets determined in the previous part and 1 branch?…calculate the Predicted yearly profit levelsGreener Grass Company (GGC) competes with its main rival, Better Lawns and Gardens (BLG), in the supply and installation of in-ground lawn watering systems in the wealthy western suburbs of a major east-coast city. Last year, GGC’s price for the typical lawn system was $1,900 compared with BLG’s price of $2,100. GGC installed 9,960 systems, or about 60% of total sales and BLG installed the rest. (No doubt many additional systems were installed by do-it-yourself homeowners because the parts are readily available at hardware stores.) GGC has substantial excess capacity–it could easily install 25,000 systems annually, as it has all the necessary equipment and can easily hire and train installers. Accordingly, GGC is considering expansion into the eastern suburbs, where the homeowners are less wealthy. In past years, both GGC and BLG have installed several hundred systems in the eastern suburbs but generally their sales efforts are met with the response that the systems are too expensive.…