A firm in a competitive market has the following market price P = 5000, and the following marginal cost curve MC(Q) = 13Q3 and a fixed cost of FC = 100. What is the profit maximizing quantity of production for this firm?
Q: Suppose the state of Florida responds to the demands of nature lovers and bans all billboards along…
A: In economics, demand refers to the quantity of a good or service that consumers are willing and able…
Q: Calculate the present worth of a geometric gradient series with a cash flow of $42,000 in year 1 and…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Show how each of the following would affect the U.S. balance of payments. Include a description of…
A: Balance of payments (BOP) is a record of all transactions made between a country and the rest of the…
Q: Suppose the current one-year interest rate is 4%, and financial markets expect the one-year interest…
A: Yield to maturity (YTM) is the overall rate of return a bond will have earned once it has paid all…
Q: Using the budget data below, calculate the debt-to-GDP ratio as of December 31, 2020 (Round your…
A: The Debt-to-GDP ratio is a tool that compares a country's total debt to its GDP. It is computed by…
Q: 1. What is the equilibrium price? What is the equilibrium quantity? Suppose P_c goes up to 14. New…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium is…
Q: (Figure: Determining Monopolist Profit) Based on the graph, the profit-maximizing firm's total cost…
A: The monopolist produces where the MR=MC. The monopoly firm is price maker in the market.
Q: A bank reports the following items on its latest bat ance sheet allowance for loan and lease losses.…
A: A bank is a type of institution that accepts loans and deposits as its primary purpose in exchange…
Q: Give typing answer with explanation and conclusion Briefly explain the relationship between money…
A: Money supply is defined as the total amount of money that is in circulation in the economy at a…
Q: Assuming the blankets in this market are considered identical by consumers, how much profit will a…
A: In perfectly competitive market, there are many firms producing identical goods.
Q: 1 Complete the Table Note: TFC = 5. Q TC MC ATC 0 1 2 CTA CON 3 4 5 29 38 6 X 2 6 X 5 5 2 Maximize…
A: TFC is total fixed cost which is the total cost when nothing is produced.
Q: Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+/q²…
A: Total cost is a sum of fixed cost and variable cost. Fixed cost doesn’t depend on quantity whereas…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: When the gap between total revenue and total costs is as large as possible, profit is maximised.…
Q: Rachel's objective is to maximize the expected profit, subject to that Emma works for Rachel and…
A: If Emma doesn't work for Rachel, she will earn 15 units of utility as this is the opportunity cost…
Q: If there is a $3 tax, what is the equilibrium price buyers pay, the price sellers receive, and the…
A: Any regulating action performed by any state that directly affects a free market in a way that…
Q: (d) The producer surplus is $_ 1600 million. Now, suppose the government imposes a quota of 60…
A: The equilibrium is where the demand curve intersects the supply curve. Producer surplus is the area…
Q: Consider the labor market for the fast-food industry, which consists mainly of high school and…
A: In economics, an equilibrium point refers to the state where supply and demand for a particular good…
Q: Question 10 The Massachusetts reform under the Republican governor Romney (later presidential…
A: The Massachusetts reform, also known as the Massachusetts health care reform, was signed into law in…
Q: The government possesses the tools necessary to influence the output level in the short run through…
A: When talking about the role of government in stabilizing the economy, it can be said that government…
Q: A. Explain why Netflix is able to profitably release movies for free at home instead of releasing in…
A: The topic of discussion is the economics of bundling and the Netflix model of movie distribution.…
Q: Which of the following statements about the income velocity of money (V) is NOT correct? a. It is an…
A: The income velocity of money (V) is defined as the number of times per year that a unit of currency…
Q: At equilibrium expenditure, unplanned changes in inventory O must be negative. might be either…
A: Aggregate expenditure is the sum of consumption, investment, government expenditure and net exports.…
Q: Bearcat University hires Mr. LeBron to coach its basketball team. LeBron's utility function is u=…
A: A utility function is a mathematical representation of an individual's preferences over different…
Q: Introduction or purpose of the paper: opening acquaints the reader with the problem and states the…
A: Title: Government Business Risk Management Programs for Farmers: An Analysis of Effectiveness and…
Q: True or False. Provide an explanation - all points are awarded on the basis of the explanation. If a…
A: TRUE. Explanation: In a competitive market, the price of the firm's output is determined by market…
Q: T/F There is a absence of selling cost in a perfectly competitive market.
A: A market structure where there are many small businesses selling the same, homogenous product and no…
Q: The value of the market basket in 2005 is 475.00 and in 2007 is 1400.00. What is the 2005 CPI, if…
A: CPI refers to the total expenditure made in a particular year by the consumers of the economy. It…
Q: If a firm faces ________________________, while the prices for the output the firm produces remain…
A: An increase in the firm's profits motivate the producers to produce output (items or services),…
Q: Which of the following would reduce the supply of microcomputers? a technological improvement…
A: Supply is an upward sloping curve, showing how much quantity is supplied at different prices.
Q: identify of intercept (B0), slope of regression line (B1) , and the p value and analysis of their…
A: A regression model is a statistical tool used to analyze the relationship between a dependent…
Q: You want to buy an ordinary annuity that will pay you R4,000 a year for the next 20 years. You…
A: An annuity refers to a long term investment wherein the series of payments made at equal intervals.…
Q: All of the following can change the supply curve EXCEPT:
A: A supply curve depicts the combination of price and quantity supplied, keeping other non-price…
Q: Complete the following statement about the marginal productivity theory. For a firm that is a factor…
A: A perfectly competitive market is a type of market structure where there are many buyers and sellers…
Q: Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a…
A: Equilibrium is where the private value curve intersects the private cost curve. The socially…
Q: Indicate how each of the following would affect Vietnam's balance of payments. Indclude a…
A: Balance of payment is defined as an accounting statement that records the economic transactions that…
Q: To evaluate the impact of FDI on business performance, we consider the following model In VAit = Bo…
A: Regression is a statistical method used to analyze the relationship between one or more independent…
Q: Name two factors that contributed to inflation in 2022 and 2023.
A: Inflation has far-reaching effects throughout an economy. When prices rise significantly over a…
Q: Assume a monopolist faces the following inverse curve: Q = Ap-2. The monop- olist produces at the…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: Solving for the mixed strategy Nash equilibrium, what is the probability that you will go to Villa…
A: A mixed strategy Nash equilibrium (MSNE) is a solution concept in game theory where each player…
Q: T/F There is an in inverse relationship between the market price and the market demand.
A: The total amount of an item or service that all customers are willing and able to buy at various…
Q: Part C) Find the marginal productivities for 25 units of labor and 1435 units of capital
A: We have the following production functions: p(x,y) = 2000x4/5y1/5 Where p(x ,y) is the number of…
Q: Give typing answer with explanation and conclusion Suppose that a consumer's utility function is…
A: Given Consumer utility function: U=x5y3z3 Here x is the consumption of mineral water, y is the…
Q: What is the term economists use to refer to the relationship that a higher price leads to a lower…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Price $14 $12 $10 $8 $6 $4 $2 $0 B(2, 9.75) 1 2 3 لیا A(4, 9.3) P F(6, 6.5) C(8, 3.5) AC MC D MR 456…
A: A market form where there exists only one firm of a product and the product is unique and no close…
Q: Labor Quantity Fixed Cost 1 2 3 4 5 6 16 40 60 72 80 84 $160 $160 $160 $160 $160 $160 Different…
A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…
Q: How are the cost and benefit of tariff protection spread out in the U.S. economy? How does this…
A: Tariffs can be defined as the imposition of duties on imports by governments to generate revenue,…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: When the gap between total revenue and total costs is maximized, profit is produced. The difference…
Q: SHORT ANSWER QUESTIONS Increase in foreign holdings of assets in the United States Exports of goods…
A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…
Q: The total money supply M has two components: bank deposits D and cash holdings C, which we assume to…
A: The entire quantity of money that is readily available in an economy at any particular moment is…
Q: The corresponding table shows the production and cost information for a perfectly competitive firm…
A: A perfectly competitive firm is a type of market structure in which there are many small firms that…
A firm in a competitive market has the following market
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The market price a perfectly competitive firm has to take is pm and the total cost to the firm is TC(Q)=aq+Bq2 +y , where y is fixed cost of the firm . Find the optimal output to the firm in terms of market price pm. Express also maximum profit. How does maximum profit depend on the market price and the level of fixed cost? All parameters are assumed to be positive.?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 market demand for Gucci bags is given by the function P = 75 - 1.5Q. P is price per bag, and Q is output per time period. The market supply is given as P = 25 + 0.50Q. A typical competitive firm that markets this type of bag has a marginal cost of production of MC = 2.5 + 10q. a) Calculate the market equilibrium price for the bags as well as the output rate in the market. b) Calculate how much the typical firm will produce per time period at the equilibrium price. c) If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?
- The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?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?Suppose a farmer is a price taker for soybean sales with cost functions given by the following: TC=0.1q2 +2q+30 MC = 0.2q + 21. Refer to Scenario 9-3. If P = 6, the profit-maximizing level of output is (a) 10. (b) 20. (c) 40. (d) 80. 2. Refer to Scenario 9-3. If P = 10, the profit-maximizing level of output is (a) 0. (b) 30. (c) 40. (d) 50.
- A firm operates in a perfectly competitive market. The market price of its product is 4 birr and the total cost function is given by TC= 1/3 Q3 - 5Q2+20Q + 50, where TC is the total cost and Q is the level of output.a) What level of output should the firm produce to maximize its profit?b) Determine the level of profit at equilibrium.c) What minimum price is required by the firm to stay in the market?A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q2 To maximize its profit, the firm chooses to produce q=_________. The profit of this firm is $__________Suppose that the firm operates in a perfectly competitive market. The market price of his product is$10. The firm estimates its cost of production with the following cost function: TC=10q-4q2+q3 A. What level of out put should the firm produce to maximize its profit? B. Determine the level of profit at equilibrium. C. What minimum price is required by the firm to stay in the market?
- A perfectly competitive industry has 150 identical firms. At a price of $8, the typical firm supplies 10 units of output, so the market quantity supplied is nothing units of output. (Enter your response as an integer.)(i) If the demand curve for a particular commodity is p = −0.09x + 51 and the total cost function C(x) = 1.32x2 + 11.7x + 101.4,where x is the level of production. Find: 1. All values of x for which production of the commodity is profitable.A firm's demand and total cost function are given by the expression: P = 20 - Q/2 (1) TC = 0.5Q2 + 36 (2) Where P is price per unit in £ TC = total cost in £ Q is quantity demanded and produced. Find the profit-maximising level of output using the profit function and calculate how much profit is made at this output level.