A firm in a competitive industry has the following cost function: c(y) = y3/3-20y2 +310y. (Note that this is a different cost function than the one used in the earlier problems.) What is the minimum price at which this firm will supply any output? (Also note that the question is asking for price, not quantity.) Answer is integer.

A firm in a competitive industry has the following cost function: c(y) = y3/3-20y2 +310y. (Note that this is a different cost function than the one used in the earlier problems.) What is the minimum price at which this firm will supply any output? (Also note that the question is asking for price, not quantity.) Answer is integer.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

See similar textbooks

Similar questions

A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.
Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function? Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Compute Bitcom’s short-run supply curve for its product. Provide a 100 word summary of how this can be applied to the current economy. Show Calculations and can it be done in Excel?
Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The total cost (TC) function for each firm is TC = 0.05q^2 + 1,080. If the marginal cost (MC) function for the firm is MC = 0.1q, a)what is the profit maximizing quantity for the firm to produce? b)what is the profit for the firm at the profit maximizing point?
A perfectly competitive firm has the following total cost function: Total Output(Units) Total Cost(₨)0 201 302 423 554 695 846 1007 117 How much will the firm produce if the price of the product in the market is ₨ 14 per unit? How will itchange its output if price rises to ₨ 16 per unit?
Assume that a competitive firm has the total cost function: TC=1q3−40q2+820q+1900 T C = 1 q 3 - 40 q 2 + 820 q + 1900 Suppose the price of the firm's output (sold in integer units) is $600 per unit. How many units should the firm produce to maximize profit? What is the total profit at the optimal output level? Please specify your answers as integers.
A firm has a linear demand function for it's product.When the price for the product is Sh.220,the quantity demanded is 40 units.When the price increases to Sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is given by; MC = 40Q-2Q^2+2 Fixed cost = Sh. 5 million Where Q= quantity demanded, Mc= marginal cost(cost in Sh. Million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at a maximum profit
A firm has a linear demand function for it's product.When the price of the product is sh.20,the quantity demanded is 40 units.When the price increases to sh.240 the quantity demanded becomes 30 units.In addition,the firm's marginal cost function is giving by: Mc = 40q- 2q^2+2 Fixed cost = 5 million Where q= quantity demanded,Mc = marginal cost(sh.million) Required 1.The level of output that maximises profits 2.The maximum profit 3.The price of the product at the maximum profit
The cost function for Acme Laundry is C(q)=50+30q+q2, where q is tons of laundry cleaned. What q should the firm choose so as to maximize its profit if the market price is p?
The cost function for a firm in perfect competition is given as C(Q) =Q³-8q²+5 . Find the profit maximizing output for this firm, if the price of this product is 30.
A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (d) How many laundry sinks will the company need to produce in order to maximise it′s profits?
Suppose there are 5 firms in this industry, each of which has the cost curves previously shown.
A competitive firm has the following average cost function: AC=y2 - 8y + 30 + 5/y. The corresponding marginal cost function is MC = 3y2 - 16y + 30 a) Derive the total cost function, then find the firm’s average variable cost, average fixed cost, and fixed cost. Is this firm in the short run or the long run? How do you know? b) At what quantity is marginal cost equal to average variable cost? At what quantity is average variable cost minimized? The firm will supply zero output if the price is less than what? c) What is the smallest positive amount that the firm will ever supply at any price? At what price would the firm supply exactly 6 units of output?