Consider a firm that is indifferent between shutting down and continuing to operate in the short run when facing a market price of $50. The firms total cost is $600 and its average fixed cost is $10 How much revenue is the
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Consider a firm that is indifferent between shutting down and continuing to operate in the short run when facing a market
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- Consider a firm that is indifferent between shutting down and continuing to operate in the short run when facing a market price of $40. The firms total cost is $1800 and its average fixed cost is $20. How much revenue is the firm making? What would be the firm’s average fixed cost of producing 100 units of output?A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? Explain.A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the marginal revenue and marginal cost are each $35 and the firm's average total cost is $25, What is this firm's profit?
- In a perfectly competitive market with a constant cost industry, there are currently 100 identical firms, each with the total cost function TC(Q) = Q2 + 4Q + 36. The market demand is Q = 1800 – 50p. What is the price at the short-run equilibrium? What is the net profit/loss of each firm at this price?Consider a perfectly competitive market with similar firms. Assume the total demand in the market is MWTP = 93 - 3Q. Each firm's total cost is TC = q^3 - 2q^2 +4q and its marginal cost is MC = 4 - 4q +3q^2. What is the long-run number of firms in the market? Decimals are possible. Answer to the second decimal place, and do not round until your final answer!At its current level of production, a profit-maximizing firm in a competitive market receives $15.00 for each unit it produces and faces an average total cost of $13.00. At the market place of $15 per unit, the firms marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firms current profit? What is likely to occur in this market and why?
- Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed cost given only the available information, what would you except product price to be in the long run?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.in a perfectly competitive market with a constant cost industry, there are currently 100 identical firms, each with the total cost function TC(Q) = Q^2 + 4Q + 36. The market demand is Q = 1800 – 50p. a. What is the price at the short-run equilibrium? What is the net profit/loss of each firm at this price? b. In the long run, how many firms will enter into /exit from the market?
- A firm sells its product in a perfect competitive market where other firms charges a price of $90 per units. the firms total cost are C(Q)=50+10Q+20Q^2 What price should the firm charge in the short run How much output should the firm produce in the short run What are the firms short run profits what adjustment should be anticipated in the long runThe table below shows a short run situation is evident from: a)the linear marginal revenue function b)the constant price c)the increasing marginal cost d)the presence of positive costs at Q=0 e)the absence of marginal values at Q=0A 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 How much output should the firm produce in the short run? What price should the firm charge in the short run? What are the firm’s short-run profits? What adjustments should be anticipated in the long run? Calculate the new optimal quantity and price.