[28] Currently, an industry is operating at a point where price = 20, quantity = 10, slope of the demand curve =-1, and marginal cost = 20. Accordingly, the degree of competition in this industry, as measured by the conjectural variation, equals: A. 0. В. C. 1. D. 2.
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![[28] Currently, an industry is operating at a point where price = 20, quantity = 10, slope of the demand
curve = -1, and marginal cost = 20. Accordingly, the degree of competition in this industry, as measured by
the conjectural variation, equals:
A.
0.
В.
2.
C.
1.
D.
2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9502bb61-126b-4d14-a250-0f4f2477c921%2Fe45b2b63-0a7b-42d1-85d2-307435ad3c5f%2Fs1ccxlnm_processed.png&w=3840&q=75)
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- Suppose that a perfectly competitive firm faces a market price of $7 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curveat an outpuut level of 1,400 units. If the firsm produces 1,400 units, it's average variable costs equal $6.50 per unit, and its average fixed costs equal $0.80 per unit. What is the firm's maximizing (or loss-minimizing output level? What is the amount of it's economic profits (or losses) at this output level?Why is the equality of marginal revenue and marginal cost essential for profifit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.Refer to Figure 1 for questions 18-20. In Figure 1: D = Demand Curve; MR = Marginal Revenue Curve; and MC = LRATC is Marginal Cost, assumed to be equal to Long Run Average Total Cost. What is the competitive output and price for this market? Options: a) P = $3, Q = 7 b) P = $6, Q = 4 c) P = $3, Q = 4 d) P = $6, Q = 7
- 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?Given P = 300 + 200Qs (demand equation), P = 6300 − 50Qd (supply equation), and TC = 500 + 10Q + 0.8Q2 (cost function) in a perfectly competitive market, a profit-maximizing firm will produce an output equal to ________. Round your final answer to the nearest 2 decimal places(Figure: Price and Quantity of Output and Table I) For simplicity, assume that there are only three firms in a perfectly competitive industry; their short-run supply curves are depicted in the graph. At a market price of $40, the industry output is ____. A. 4 B. 1 C. 15 D. 9.5 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (a) Find the equilibrium price, the equilibrium quantity, the output supplied by the rm, and the pro t of each rm. (b) Would you expect to see entry into or exit from the industry in the long run? Explain. What eect will entry or exit have on market equilibrium?Suppose that, in a perfectly competitive industry, every firm has total cost function TC(Q)= 5million +4Q+Q²/50,000. Demand is given by D(p) - 375,000(42-2p). (a) If the industry consists of five firms, with no possibility of entry or exit, how much does each firm produce in equilibrium? (b) What is the profit of each firm? (c) How would you answer to part (a) change if there would be a possibility of entry and/or exit? Provide a sketch of how one would solve for the equilibrium outcome.The market demand and market supply functions for a perfectly competitive market are given below: Qd = 400 - PQs = 4P 1) What is the marginal revenue for each firm? A. MR=$400 B. MR=$0 C. MR=$80 D. MR=$4 2) If there are 160 identical firms in the market, each firm produces _____ A. 320 B. 160 C. 2 D. 80 3) If there are 160 identical firms in each market, total revenue for each firm is A. $25,600 B. $16,000 C. $160 D. $12,800 4) Suppose there are 160 identical firms in the market and each firm's total cost at equilibrium is given as $140. Calculate firm profit. A. $20 B. $0 C. $140 D. $25,460
- Suppose that a perfectly competitive firm faces a market price of $7 per unit. The output level corresponding to a marginal cost of $7 per unit is 1,000 units. At 1,000 units, its average variable costs equal $8 per unit, and its average fixed costs equal $1 per unit. The firm's profit-maximizing (or loss-minimizing) output level = . Write number only. The firm's economic profit (or loss) at this output level = . Write either profit number or loss number: e.g. profit 2000.The table below shows the average cost (AC) for a purely competitive market. The average revenue (AR) is constant at RM5 per unit and the firm’s total fixed cost (TFC) is RM4. If the average revenue falls to RM3 per unit, calculate the firm’s new profit or loss at the equilibrium. Based on your answer, should the firm continue or stop the production? Justify. Output (Units) Total Revenue (RM) Average Cost (RM) Total Cost (RM) Marginal Cost (RM) Marginal Revenue (RM) 1 8.0 2 5.5 3 4.0 4 3.5 5 3.8 6 4.5 7 6.0Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (c) What is the lowest price at which each rm would sell its output in the long run? Is pro t positive, negative, or zero at this price? Explain. (d) What is the lowest price at which each rm would sell its output in the short run? Is pro t positive, negative, or zero at this price? Explain.
