A competitive firm has a total cost function: TC = 100 + 25q − 8q2 + 2q3 and a marginal cost function MC = 25 − 16q + 6q2. Calculate the range of prices for which the firm will find it optimal to shut down.
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A competitive firm has a total cost function: TC = 100 + 25q − 8q2 + 2q3 and a marginal cost function MC = 25 − 16q + 6q2.
Calculate the range of prices for which the firm will find it optimal to shut down.
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- When a competitive price-searcher market is in long-run equilibrium, the firms will earn economic profit. charge a price that is equal to average total cost.The intersection of the average variable cost curve and the marginal cost curve, which shows the price where the firm would lack enough revenue to cover its variable costs, is called the: Shutdown point Equilibrium Profit LossA competitive industry consists of 100 identical firms. The short run cost function of each firm is given by C(q)=200q+15q^2 What is the supply function for each firm?
- When the competitive firm maximizes profit, its marginal cost of an additional unit of output is always equal to the: Minimum of average total cost. Minimum total cost. Price. Maximum total revenue.Suppose that the current price per unit of the good is 10 pounds. A perfectly competitive firm faces the cost function, C = 100 + (1/5)Q2, with marginal cost, MC, equal to (2/5)Q, where Q denotes the quantity produced. Find the profit-maximizing output for this firm in the short-run. Calculate profits. At the profit-maximizing output, is the firm covering its variable costs?If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Qi What is the short-run industry supply function? (where lowercase subscript "i" is for the firm and uppercase "I" is for the Industry)
- A competitive industry consists of 100 identical firms. The short run cost function of each firm is given by C(q)=200q+15q^2 What is the market supply function?Industry X has a market demand curve given by the equation P = 100 – Q/100, where P is the market price, and Q is industry-wide output.100 perfectly competitive firms currently operate in industry X. Each of these firms has a total cost function given by TC = 100 + 10q + q2, where q is the output of the individual firm, and thus MC = 10 + 2q. (a) Would any of the firms in industry X ever shut down in the short run? If so, what is the cut-off price required for firms to operate – Shut-down price? (b) What is the market output in the short run? What is the market price? How much do individual firms produce? Do firms earn economic profits? [Hint: you will first need to work out the industry supply curve.] *Note: when finding answers for this question online, they wrote to first find the AVC function for part a but I don't understand how they found that AVC function first- any help would be much appreciated!A firm that behaves in a perfectly competitive fashion has the following cost function: C(Q)=Q² +20 +25. For the current market price, the firm is producing where the total average cost is minimum. What is the market price? Select one: a. 25 b. 5 c. 12 d. 60
- Suppose a competitive firm has the short-run total cost function: STC = 4q2 + 20q + 100 Find the shut-down price of the firm, find the break-even price of the firm and the optimal supply decision of this firm.The total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q Find the equilibrium price and total quantity that the industry produces. Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80 – 4Q? Is this hostile takeover beneficial?A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as C(Q) = 70 + 14Q + 2Q2. Thus, the marginal costs are MC(Q) = 14 + 4Q. How much output should the firm produce in the short run?
