A competitive firm has the short-run cost function C(y) = 4y3 -2y2 + 10y + 2. a) At what price will the firm agree to produce in the short-run? b) What is the shutdown condition for this firm?
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A competitive firm has the short-run cost function C(y) = 4y3 -2y2 + 10y + 2. a) At what
b) What is the shutdown condition for this firm?
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- If a firm's total cost function is c(q) = 100 + 10 q – q2 +0.1 q3, then (a). what is the firm's shut down price? (b). If the firm is operating under perfect competitive market, derive the firm’s short run supply function.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.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.
- 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 supply function for each firm?Multiplying one firm’s short-run supply function to the number of firms in a specified industry will give you the short-run market supply function. True or false.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?
- 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?Suppose a firm operating in a perfectly competitive industry has costs in the short run given by: SRTC = 8 + ½q^2 and therefore MC = q. Assuming that the firm is a price-taker operating in a competitive market, derive an expression for the firm’s supply curve, (the profit maximizing output for the firm as a function of the market price, i.e., q^s = f(p). Assuming the firm is one of 100 identical firms in the industry, what is the short-run supply curve for the industry, i.e., Q^s = f(p)? If demand is given by Q^D = 1000 – 100p, what are the short-run equilibrium price, market quantity, and firm quantity? Is this a long-run equilibrium? [Hint: Calculate firm profit in the equilibrium.]. Suppose a firm operating in a perfectly competitive industry has costs in the short run given by: SRTC = 8 + ½q2 and therefore MC = q. Assuming that the firm is a price-taker operating in a competitive market, derive an expression for the firm’s supply curve, (the profit maximizing output for the firm as a function of the market price, i.e., q S = f(p). Assuming the firm is one of 100 identical firms in the industry, what is the short-run supply curve for the industry, i.e., Q S = f(p)? If demand is given by Q D = 1000 – 100p, what are the short-run equilibrium price, market quantity, and firm quantity? Is this a long-run equilibrium? [Hint: Calculate firm profit in the equilibrium.]
- A firm produces a product in a competitive industry and has a total cost function C = 80 + 4q + 2q2 and a marginal cost function MC = 4 + 4q. At the given market price of $28, the firm is producing 7 units of output. Is the firm maximizing its profit? What quantity of output should the firm produce in the long run?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 LossIf a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE? A)p < AVC for all levels of output. B)The firm will earn zero profit. C)p < AVC only if the firm has no fixed costs. D)p < AVC only for the level of output at which p = MC.
