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
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A firm that behaves in a
Select one:
a. 25
b. 5
c. 12
d. 60
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- 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.Assume the market for chips is perfectly competitive. The market supply and demand curves for chips are given as follows: supply curve: P = 0.000002Q demand curve: P = 11 - 0.00002Q The short run marginal cost curve for a typical chips factory is: MC = 0.1 + 0.0009Q Determine the equilibrium price for chips. Determine the profit maximizing short run equilibrium level of output for a chips factory. Assuming that all of the chips factories are identical, how many chips factories are producing chips?The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answer
- A typical firm in long-run equilibrium in an industry with identical firms has a cost function given by C(q) = 4900 + 2q2 What is the equilibrium price?The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=712+q^2 and Marginal Cost curve MC=2q. Market demand is Q=895-2P. What is the long-run equilibrium market price? Enter a number only, drop the $ sign.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 What are the firm’s short-run profits? What adjustments should be anticipated in the long run? Given these adjustments, calculate the new optimal quantity and price.
