A firm’s marginal cost is $5. If it charges a price of $20, the price elasticity of demand for the product of this firm is: a. −0.25. b. −0.50. c. −0.75. d. −1.33. e. None of the above.
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A firm’s marginal cost is $5. If it charges a
a. −0.25.
b. −0.50.
c. −0.75.
d. −1.33.
e. None of the above.
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- Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?Consider the following cost function: Total Cost = 50+5Q^3 and demand curve Price= 5000-275*Q Given these functions, what would be the profit maximizing output?There are 1000 pear producers that have identical cost functions, C= 200+0.025q2 where q is the number of crates of apples produced. The producers operate in a perfectly competitive market. The supply curve of each producer is ________ The total supply curve for the market is ________ At a price of 100, the elasticity of supply for the market is _________, meaning that supply is _________ For the answer options, refer to the attached image.
- A perfectly competitive firm's short−runsupply curve is A. perfectly elastic at the market price. B. upward sloping and is the portion of the marginal cost curve that lies above the average variable cost curve. C. upward sloping and is the portion of the marginal cost curve that lies above the average total cost curve. D. horizontal at the minimum average total cost.A firm's faces a constant output price of $5. It produces 37 units and incurs a MC of $3. Which of the following is true? Select all that apply. A. The firm is perfectly competitive because it faces a horizontal straight line demand curve. B. The firm is perfectly competitive because it faces a horizontal straight line Average Revenue graph. C. The firm's marginal revenue is $5. D. The firm's Total Revenue equals $185. E. The firm's Total Cost equals $111.A competitive firm has a long-run total cost function C(y) = 3y2 + 108 for y > 0 to produce y units of its good. Show the condition of market price that the firm will supply and the break-even price.
- 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. (e) What is the maximum profit?Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q where Q is the number of wine decanters produced annually. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What is the marginal revenue at 40,000 units? If Bavarian Crystals is currently producing 40,000 units would you recommend they increase their production?In the short run , a profit -maximizing firm will produce additional units of a product as long as- a) price at least covers average fixed cost b) total revenue is increasing c) a change in the rate of technical substitution d) elasticity of demand is infinite e) price at least covers average variable cost
- Optimal Price. Last week, Wally's Burgers, Inc. reduced the average price on the 1/2-pound Papa burger by 1%. In response, sales jumped by 2%.A. Calculate the point price elasticity of demand for Papa burgers.B. Calculate the optimal price for Papa burgers if marginal cost is $1 per unit.If Jim’s Home Goods price elasticity of demand is −2, and its profit maximizing price is $6, then its: average cost is $3.00. average cost is $0.33. marginal cost is $3.00. marginal cost is $0.33. average cost is $5.67.Asap Firm A works in a competitive market and earns 0 profit for the profit-maximizing quantity level. Cost function of the company is: TotalCost=3Q2-10Q+300 a- Find the price and quantity values for the profit-maximizing level. b- Let’s assume that the fixed cost increases to 500. Would you shut down or not the company (based on rationality)?
