A perfectly competitive fim has the following total cost function: Total output Total Cost 20 1 30 2 42 3 55 4 69 5 84 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit? 6.

A perfectly competitive fim has the following total cost function: Total output Total Cost 20 1 30 2 42 3 55 4 69 5 84 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit? 6.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 5SQP

See similar textbooks

Related questions

Q: A competitive firm's total cost is TC(Q)=3Q2+7Q+35 when the output level is Q. Accordingly, its…

A: In a competitive market, the equilibrium occurs at, P=MC.

Q: Total Variable Cost Output (Q) 0. Total Fixed Cost 20 1 20 7 3S 10 3.3 15 3.75 21 42 20 20 20 20 The…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: A perfectly competitive firm has the following total cost function: Total Output (Units) Total…

A: In a perfectly competitive firm there are large number of firms producing identical products thus…

Q: The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: Given: TC= 599+17q+q2 MC=17+2q Q = 517-p Market price = $95

Q: Problem 2 All firms in a competitive industry have the following (long-run) total cost curve: C(q) =…

A: a) To get the long-run price of the market, initially it is required to ascertain q from the cost…

Q: If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm…

A: Given:Marginal Cost Function of the firm: P=10+100Qi

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Q: perfectly competitive firm has total revenue and total cost curves given by: TR =…

A: Given Total revenue TR=100Q .......(1) This implies that…

Q: The total cost function of a firm in a perfectly competitive market is given by: TC =3Q2+ 2Q + 10.…

A: Here, the total cost function of a firm, which operates in the perfectly competitive market, is…

Q: A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost…

A: Profit maximization is the short run or long run process by which a firm may determine the price,…

Q: competitive firm has the short run total cost function: TC = Q³ – 8Q² + 30Q + 5 a. Find and graph…

A: Total Cost function for a competitive firm is gives as : TC = Q3 - 8Q2 + 30 Q + 5 Average Cost…

Q: 20Q, where C is the total cost, F is a fixed cost, and Q is the level of output. The inverse demand…

A: Answer According to the question it is given that : Cost function (C) = F + 20 Q And, the inverse…

Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost s10 16 2 20 3 22…

A: MC= TC2-TC1/Q2-Q1

Q: A competitive firm has a total cost function: TC = 100 + 25q − 8q2 + 2q3 and a marginal cost…

A: TVC = TC-TFC where TFC = 100. So TVC = 25q -8q2 + 2q3

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect competition market refers to a market structure that has many sellers who sell identical…

Q: A perfectly competitive firm sells its output for $0.99 per unit. At 10,000 units of output per…

A: Under a perfectly competitive market, there are a large number of buyers and sellers. Each seller…

Q: The figure below shows an individual firm's marginal cost (MC), average variable cost (AVC), and the…

A: The above graph follows the shutdown condition which the firm should not operate when the price is…

Q: lowglobes are produced by identical firms in a perfectly competitive market. There are 24 firms in…

A: In a perfectly competitive market, the profit-maximizing output level is achieved when the…

Q: A perfectly competitive firm has a long-run cost function, C(q) = 8q2 + 72. In the long run, this…

A: In case of Perfect Competition, there are large number of buyers and sellers. All firms sell…

Q: Consider the firm's cost function 1 C(q : qʻ + 10q + 5 the demand function is QD 1700 – 50P. What is…

A: In the long run, firms in perfectly competitive market make zero economic profit, meaning they sell…

Q: A market contains many identical firms, each with the short run total cost function STC(Q) = 400 +…

A: When each firm in the industry is earning zero profit, then it means that it is charging a price…

Q: The total cost of producing 6 units of output is __________________ If the firm is producing at an…

A: Total Cost = Total Fixed Cost + Total Variable Cost Zero Economic Profit occurs when Total Revenue =…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…

Q: Q4) A perfectly competitive firm has the following total cost function: 05 Total output Total Cost…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: There are several identical firms in a perfectly competitive market in the long run. Each firm faces…

A: A perfectly competitive firm produces at P = MC = ATC in long run. ----------------------- TC = 400…

Q: A perfectly competitive industry has a large number of potential entrants. Each firm has an…

A: The short run supply function for each firm is p= MC = q -10 => q = p+10

Q: Table) Based on the table, what is the average total product when John's Salsa Company hires three…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The market for good X consists of 1,000 identical firms, each with the total and marginal cost…

A: In short run, Price = MC. Firm's supply function is its MC function. In long run, new firms enter…

Q: a perfect competitive firms has the following total cost function: total output : 0 1 2 3 4 5 6 7…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market is a market structure where all seller sell identical products, firm…

Q: you are the manager of a firm that sells its product in a perfectly competitive market at a price of…

A: Answer to the question is as follows:

Q: A perfectly competitive firm's total cost and marginal cost functions are: TC = 40 +0.1 Q² -0.2Q and…

A: In the perfectly competitive market, firm produces where the P =MC.

Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in…

A: A short-run competitive equilibrium occurs when, given the businesses in the market, the price is…

Q: A competitive firm has the short-run cost function C(y) = 4y³ – 2y² + 10y +2. At what price will the…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to employment of…

Q: A perfectly competitive firm has the following total cost function: Total output Total Cost 0…

A: The perfectly competitive is the type of market structure where there are large number of buyers and…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: Given: Total Cost : TC=470+13q+q2 Marginal Cost : MC=13+2q Market Demand: P=401-2Q

Q: A perfect competitive firm has a long-run cost function, C(q) = 8q2 + 200. In the long run, this…

A: Given the information: Total cost = 8q2+200MC = dTCdqMC = 16q

Q: Consider a perfectly competitive market with similar firms. Assume the total demand in the market is…

Q: firm's profit function is z(q) = R(q) – C(q) = 140q - (410 + 20q + 10q). What is the positive output…

A: Profit is the difference between total revenue and total cost. Total cost is the sum of Fixed and…

Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…

A: Given:- Demand Function: QD=600-P Cost Function: TC=q3-20q2+120q At equilibrium Market demand=Market…

Q: Consider a perfectly competitive market in which each firm's short-run total cost function is C= 25+…

A: Answer -

Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…

A: Given Information Market demand : QD = 600−PFirm cost: TC = q3 − 20q2 + 120q

Q: Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: TC=404+19q+q2 MC=19+2q Q=316-P or, P= 316-Q P = $86

Q: foreign used car dealership which sells the 2020 Toyota Aqua Hybrid. His total cost function is…

A: in a competitive market there are large number of firms producing identical products thus acting as…

Q: 20 E MC ATC AVC 16 3 12 8 4 0 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) Price and cost…

A: Marginal cost(MC) refers to the cost(C) incurred on an additional unit of good produced. A…

Question

A perfectly competitive fim has the following total cost function:
Total output
Total Cost
20
1
30
2
42
3
55
4
69
5
84
100
7
117
How much will the firm produce if the price of the production the market is Rs. 14 per unit?
How will it change its output if price rises to Rs. 16 per unit?
6.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

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.
Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the producers in the corn production industry were price takers, what would happen to the following? a. the price of corn b. the profitability of corn farmers who quickly adopt the new technology c. the profitability of corn farmers who are slow to adopt the new technology d. the price of soybeans, a substitute product for corn
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?
Rasiah's Garden of fruit is a firm selling fruits in a perfectly competitive market. Total fixed cost is RM50, and the wage for labour is RM5 per worker. The estimated output produced and cost are as follows: Labour Output (Kg of fruits) usage 0. 0. 8. 10 12 20 17 30 24 40 33 50 44 60 57 70 Calculate the total variable cost, average total cost, average variable cost, marginal cost, total revenue and marginal revenue. b. If Rasiah's garden of Fruits sells a kilo of fruit for RM3.50, how many Kg of fruit (output) should the firm sell in order to maximise profits, and how much profits would the firm make?
A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2where TC is total cost and Q is output level.a. Find the firm’s average total cost function. b. Find the firm’s average variable cost function. c. Find the firm’s marginal cost function. d. Given the price is $100, what is the profit-maximizing output level? e. Given the price is $100, what is the profit level? f. Over time, is there going to be entry or exit in this competitive market? Why?
Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost function: TC = 4,500 + 2q + .0005q2 where TC is total cost in dollars and q is the quantity of output produced. a. Assume this perfectly competitive market consists of 800 firms with cost structures identical to the one above. What is the equation for the market supply curve? Assume the market demand curve is: Qd = 5,600,000 – 400,000P where Qd is the quantity demanded in the market and P is the commodity’s price in dollars. b. What is the market’s equilibrium price? c. Assuming the market is in equilibrium, using marginal revenue and marginal cost determine the firm’s profit-maximizing quantity of output? What does the profit-maximizing firm’s total economic profit equal? Assume the total cost function above: TC = 4,500 + 2q + .0005q2 is associated with the short-run total cost function that corresponds to the minimum point on the long-run average total cost curve and this is a…
Two dairy farmers produce milk for a local town with local milk demand given by Q=100-0.3333333333P(P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC=150+2q(wheredenotes output). (h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers.
A firm has the following total costs, where Q is output and TC is total cost: QTC0$ 1001110213031604200525063107380846095501065011760 Say the firm is in a perfectly competitive market. If the current market (equilibrium) price is $ 70, at what output level will the firm as a profit maximizer produce at? Say the market price rises to $ 100. At what output level (as a perfect competitor) will this produce at? How much profit is the firm making at a price of $90? Based on this calculation, do you expect firms to enter or leave this market? Say instead this firm is a monopoly. If the firm maximizes profit at an output level where marginal revenue equals $ 80, what output level will this be?
A highly competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC = 10 + q, where q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a vertical distance of 10 above the horizontal axis. Given the market short-run supply curve: MC= aQ + b where Q is market output Solve for a: __1__ Solve for b: __2__ What is the price that would make 500 units forthcoming per time period? __3__
Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Assuming that the firm operates in a perfectly competitive market, supply the missing values in the table above. You may use a spreadsheet program to compute the values but must provide a step-by-step…
Suppose that the total cost function of a firm is given as follows; TC = 500 + 2Q2 And the price of the firms product is determined by the market equilibrium at $100. a) set the profit maximizing condition. Find the profit maximizing output level for the firm. b) what is the total revenue c) what is the total cost? d) what is the profit earned by the firm e) illustrate your answer by using a well labeled graph.
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=334+q^2 and Marginal Cost curve MC=2a. Market demand is Q=807-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? (You can assume that MC>=AVC at every quantity for this question).