10. Suppose in a market that market demand is od - 100 - P and market supply is Qd = 3P. If the typical firm in the industry has STC = 200 + Q + 402 and SHC =1 + 8Q, how many units should the typical firm produce to maximize profit? a. 2 b. 3 c. 4 d. 5
Q: 31) What is total fixed cost at the profit-maximizing quantity? 32) When the process of entry and…
A: 31. Fixed cost: The cost that is incurred on the fixed factors of production is known as the fixed…
Q: nd P is price. What is the correct expression for total profit? a.25Q – 2Q2 – 15
A: Given : TC = 15 + 5Q + Q2 Q = 30 – P or P=30-Q
Q: Q4. A perfectly competitive firm has a marginal cost given by MC(q) 0.25q and a total cost function…
A: TC=2+0.125q2 TR=12q MC=0.25q
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A: As we answer only three subparts but the question has more than 3 subparts, we are answering the…
Q: TC = 800 + 10Q +1.5Q2 ; Price = 100 1. Identify the output level (Q*) that will maximize the profit…
A: (1) TC = 800 + 10Q + 1.5Q2 ----------- Price =100 TR = Price * Quantity => TR = 100Q -----------…
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A: A -15 is the correct answer.
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Q: (9) = 200 + q*/2. %3D hat is each firm's supply function? =p+25 = p- 25 ose the market is in a…
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: Average fixed cost can be calculated by using the following formula.
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A: Answer;
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A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
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A: Competitive market with QS = 50P – 1000 and the market demand is QD = 2800 – 50P
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A: Answer to the question is as follows :
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Q: MC ATC 10 AVC 8. 4 Figure 9.2 shows the cost 60 80 100 Q Figure 9.2 structure of a firm in a…
A: Ans) in perfectly competitive market, price is constant and equal to marginal revenue.
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A: Hey, Thank you for the question. According to our policy, we can only answer up to 3 subparts per…
Q: Marginal income: IMg = 100 / N - 2Q Total cost: TC = 125 + 02 Marginal cost: CMg = 2Q 1. How many…
A: Answer in step 2 Note please post Last part separately. Thankyou
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A: The table showing output and cost is as follows:
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: 1. There are 300 identical firms in a perfectly competitive market, the price of the output is p,…
A: In the mentioned question, We are given that we have 300 identical firms in the market. Also, cost…
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- 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)An industry currently has 100 firms, each of which has fixed cost of $16 and averagevariable cost as follows:Quantity Average Variable Cost1 $ 12 23 34 45 56 6a. Compute a firm’s marginal cost and average total cost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How much does each firm produce? What isthe total quantity supplied in the market?c. In the long run, firms can enter and exit the market, and all entrants have the samecosts as above. As this market makes the transition to its long-run equilibrium, willthe price rise or fall? Will the quantity demanded rise or fall? Will the quantitysupplied by each firm rise or fall? Explain your answers.Given: TC = 800 + 10Q +1.5Q2 ; Price = 1001. Identify the output level (Q*) that will maximize the profit of the firm. 2. Calculate the firm’s profit. If Price falls to 40, 3. Identify the new profit-maximizing output level. 4. Assess if the firm gaining profits or incurring losses and how much. 5. Justify why the firm should continue to produce at this price or not.
- A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm estimates its total costs as C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run? units b. What price should the firm charge in the short run? $ c. What are the firm’s short-run profits? $ d. What adjustments should be anticipated in the long run? multiple choice Exit will occur since these economic profits are too low. No firms will enter or exit at these profits. Entry will occur until economic profits shrink to zero.Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand 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 firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?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?
- Suppose that the firm operates in a perfectly competitive market. The market price of his product is $4. The firm estimates its cost of production with the following cost function: TC=50+20q-5q2+0.33q3 a. What level of output should the firm produce to maximize its profit? b. Determine the level of profit at equilibrium. c. What minimum price is required by the firm to stay in the market?Assume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should continue producing at the current output. produce a larger level of output. produce a smaller level of output. not enough information given to answer the question.1. A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costsof MC = 5 + 14q, and average variable costs of AVC = 5 + 7q.(a) If the price is $75, how much does the firm supply? (b) Does the firm continue to supply this quantity in the short-run? (c) Suppose there exists a standard market demand function from consumers(downward slopping). Please provide a logical discussion about how the marketachieves short-run equilibrium.
- 31) What is total fixed cost at the profit-maximizing quantity? 32) When the process of entry and exit has ended in a competitive market, are firms’ profits positive, negative, or zero? Why is this true? 33) When a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, the industry is known as a?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?The Android phone market is highly competitive since there is a large number ofcompanies and potential entrants. For simplicity, assume each firm has an identical coststructure, and the cost does not change with new firms’ entry. Each firm’s long-run average costis minimized at 300 and the minimum average cost is $150 per unit. Total market demand isgiven byQ = 15,000 − 50P.a. What is the Android phone market’s long-run supply curve? b. What is the long-run equilibrium price (P∗) and total industry output (Q∗)? Howmany companies are competing in this market?c. The short-run total cost curve for each firm is given by STC = 0.5q^2 − 150q +20000, where q is the firm’s production quantity. Find the short-run marginal cost(SMC) for each firm. What is the market short-run supply curve?d. Suppose Android phone has become more popular and the market demandcurve shifts outward to Q = 20,000 − 50P. In the *short-run*, find the new equilibriumprice. What is the new equilibrium price in…