6. A firm's demand function for a certain good is given by P-100ee. Its total cost function is TC-100ee + 50. What output level maximizes the firm's profit?
Q: 5. A perfectly competitive firm faces a _______ demand curve for its product. a. vertical b. unit…
A: Option E A perfectly competitive firm faces a horizontal demand curve for its product. This means…
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.
Q: 1. The demand equation of a good is given by P+2Q-20 and the total cost function is Q³-8Q2+20Q+2 a)…
A: Given Demand equation of a good: P+2Q=20 ... (1) Total cost function: TC =Q3-8Q2+20Q+2…
Q: 3. The demand function for Product X is Q = 100 – 2P. The company decided to set the price per…
A: As given Q=100-2P which gives P=100-Q2P=50-0.5Q Hence, Total Revenue…
Q: 11: For parts (1)-(3), suppose the market for hibiscus plants is perfectly competitive and the…
A: Here, C = 70q - 20q2 + 2q3 MC = dC/dq = 70 - 40q + 6q2 q = 30 - 0.5p p= 60 - 2q TR = p*q =…
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: 4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its…
A: A firm in a perfectly competitive market is considered as a price taker. Because the firms in a…
Q: Question 1 In Ontario, the market for pop is controlled by Pepsi and Coke (we assume that consumers…
A: A monopolist maximizes its profits at the selling point where marginal revenue equals marginal cost…
Q: 2. Suppose a firm faces demand of Y = 300 – 2P and has a total cost curve of TC = 75Q + Q². a. What…
A: by using the demand function we calculate the marginal cost and marginal revenue and calculate the…
Q: Q Search this course X CENGAGE MINDTAP Homework (Ch 10) 2. Profit maximization of a seller in a…
A: Graph:-
Q: 5. A firm produces a product in a competitive industry and has a total cost of function…
A: Answer - Thank you for submitting the question but we are authorized to solve only 3 subparts for…
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: Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. a. The…
A: "Since you have posted multiple questions, I can only answer the first question, rest you need to…
Q: 4/ Suppose that the total cost of a firm TC(Q) function =: TC(Q) = 75Q + 800 And the demand function…
A: Profit function, π = TR -TC
Q: 1) What is the firm's profit maximizing output? 2) What is the firm's profit maximizing price? 3)…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 34. In the long run, a profit maximizing]firm will choose to exit a market when a. fixed costs…
A: If a market where there is freedom of entry and exit, the firm that suffer loss will exit from the…
Q: (a) In the above table, if the firm sells 5 units of output, what's total revenue? (b) In the above…
A: Total revenue is the total amount received from the sale of goods or service. Marginal revenue is…
Q: 3. Suppose that a firm faces a demand curve that has a constant elasticity of 2. This demand curve…
A: Demand curve is given by q = 256/P2 Or, P = 16/q0.5 Elasticity of demand is 2, i.e. the demand is…
Q: a) Given the supply and demand functions: P = 300 +5Q and P = 500-5Q: Find i. The TC and TR…
A: The incremental costs spent when producing additional units of a good or service are referred to as…
Q: Question Figure 7.11 depicts the demand curve for Beautiful Cars, together with the marginal cost…
A: It is given that at Q = 32 and Price = $5440, the profit is $63360 If the firm chooses to producer…
Q: 6.) The figure below shows Average Cost, Demand, Marginal Cost and Marginal Revenue curves for a…
A: Here, the given graph represents demand curve, marginal revenue curve, marginal cost curve and…
Q: 4 In the market for running shoes, all the firms face a similar demand curve and have similar cost…
A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…
Q: Complete the following table and identify the profit maximising and output. b. What is true about…
A: Total Revenue = Price X Quantity Marginal Revenue = Change in total revenue when an additional…
Q: 5. For a profit-maximizing firm with a marginal-cost function MC(q) =q³²+ 6, find: (a) PS (producer…
A: Given The marginal cost function of a profit-maximizing firm is given as MC=q3/2+6 We have to find…
Q: (3) The demand curve of a firm is p=1200-21g and its total cost is C(@)= 2g-66q +600g +1000 where q…
A: find below the answer.
Q: 14. A shop which sells T - shirts has a demand function and a total cost function given by the…
A: Costs are the expenses that firms incur in the production of goods and services. Revenue is the…
Q: Lise the blue paints (circle symbal) to plot total revenue and the green points (triangle symbal) to…
A: The correct answer is given in the second step.
Q: We are in a position where a profit-maximizing firm facing a downward-sloping demand curve has a P =…
A: Total revenue (TR): - it is the total amount that a seller receives selling his goods and services…
Q: (b) You are the CEO for a lightweight compasses manufacturer. The demand function for the…
A: Given: p=40-4q2 Cost to make compass=$15
Q: Graphs of marginal revenue and marginal cost functions based on linear models for the demand and…
A: Marginal Cost is the additional cost incurred in the production of one more unit of output. Marginal…
Q: Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: QUESTION 2 (a) Imagine you have started a new business and the demand and cost equations are given…
A: We have market demand function P=120-0.5Q ..... (1) Cost function: C=420+60Q+Q2…
Q: 1.The long run average cost curve a. is identical to the profit maximizing short run average cost…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: 1. The demand function for football tickets for a typical game at a large midwestern university is…
A: Given: D(p) = 200.000-10.000p
Q: 3. A profit-maximizing firm is perfectly competitive and is at long-run equilibrium. The output of…
A: A perfectly competitive market refers to one where a company may readily enter and offer a product…
Q: a) The demand and total cost functions of a good are given by the following: x = 96 – p and C =…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2. In the competitive mink oil industry, each fim has the same cost function: C = 10,000 100 +…
A: Given Information, Each firm has the same cost function (C) = 100 + 0.01q2 Demand for mink oil (Q) =…
Q: Suppose that the market for candles is a competitive market. The following graph shows the daily…
A: Profit Maximization is defined as a process taken up by the firms to make sure that the best output…
Q: Suppose the firm faces a demand curve for its product P=32-2Q, and the firm's costs of production…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: 6. The demand function for a product is given by D = 5000 – 50 x P and the cost function is given by…
A: Given, Demand function, D = 5000 - 50P Q = 5000 - 50P 50P = 5000 - Q P = 100 - 0.02Q Cost function,…
Q: 3. Assume a firm is facing the market demand curve: q function is: c(q) = 2q². a. What is the firm's…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: 1. In the short run, the market price is $8. What is the profit maximizing output for this firm? 2.…
A: Note : Since the question contains multiple sub parts, only the first three sub parts shall be…
Q: Suppose Latasha runs a small business that manufactures teddy bears. Assume that the market for…
A: Profit maximizing quantity is determined where MR=MC or the profit is maximum. For the price given:…
Q: 22 The total cost and total revenue functions for a product are C(q) = 5,000,000 + 250q + 0.002q?…
A: 22. Given Total cost function: C(q) = 5,000,000 + 250q + 0.002q² Total revenue function: R(q) =…
Q: 1-consider the cigarette market. Suppose this market is in perfect competition. Suppose also that…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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- Suppose a firm is operating in a competitive market and is maximizing profit by producing at thepoint where marginal revenue 5 marginal cost.Now suppose that consumer wealth decreasesin this market (and the good is a normal good).What might you expect to happen to the profitmaximizing output quantity for the firm?COURSE: ECONOMICS A competitive firm has a marginal cost function CM = 6 + 4q and market price is P = $12.a) What the firm's level of output?b) What producer surplus? Hint: graph and computec) Assume that Average Variable Cost is AVC = 6 + 2q and Fixed Costs FC = $6; does firm have a positive, negative or zero profit? Explain5. The daily demand for rooms at a motel is given by P=100-2Q. Assume that the motel has 40 rooms. 5a. If total variable costs of running this motel are zero, find the price that maximizes profit and find the number of rooms rented at that price. Remember that profit is total revenue (i.e., TR = PQ) less total cost (i.e., the sum of variable costs and fixed costs). 5b. If the incremental cost of renting a room is $9 (i.e., the cost of paying the maid to clean the room, the cost of providing clean towels, the cost of the little pieces of chocolate that is placed on the bed, etc. is $9), find the price that maximizes profit and the number of rooms rented at that price.
- 4.4. If the firm produces the profit-maximizing output, what is its total cost? 4.5. If the firm produces the profit-maximizing output, what is its profit?15) If the average cost (AC) of producing a good is increasing as a firm produces moreoutput (q), then which of the following must be TRUE?A) AFC is falling; AVC is rising; MC > AVCB) AFC is falling; AVC is falling; MC > AVCC) AFC is rising; AVC is rising; MC > AVCD) AFC is rising; AVC is rising; MC < AVCE) AFC is falling; AVC is falling; MC < AVCA profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?
- A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.\a. What is its profit?b. What is its marginal cost?c. What is its average variable cost?d. Is the efficient scale of the firm more than, less than, or exactly 100 units?Figure 7.1 shows a firm’s total revenue and total cost curves. If the firm were producing Q1, it should a. expand output to Q2 to maximize profit. b. reduce output to zero to maximize profit. c. expand output to Q3 to maximize profit. d. expand output beyond Q3 to maximize profit. e. continue to produce Q1, which is the profit-maximizing output.An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
- 4 In the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in question 3 g. What is the relationship between smart shoes price and Marginal cost?3. Profit maximization using total cost and total revenue curves Suppose Latasha runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Latasha's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Latasha produces.π 4/ Suppose that the total cost of a firm TC(Q) function =:TC(Q)=75Q+800And the demand function = :P=600-5Qa) Find the level output (Q) that maximizes the profit level (π).b) Find the value of the maximum profit (π).