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 market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total…
A: Cost Curve refers to the curve that shows the cost of producing the different levels of quantities…
Q: Market demand is P = 50 -2Q. Firm has cost function TC(Q) = 5 + 2Q + Q^2. Can firm function as a…
A: A perfectly competitive market structure is one where there are large number of buyers and sellers.…
Q: Consider a perfectly competitive market for wheat in Denver. There are 80 firms in the industry,…
A: Answer; Note: Short‐run supply curve of a firm is the portion of the marginal cost curve that lies…
Q: perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates…
A: Given, Price = $110 TC = 70 + 14Q + 2Q2 MC = 14 + 4Q
Q: In a perfectly competitive market, assume the market price is $10 per unit, and the…
A: Answer; The profit amount at the profit-maximizing quantity is $90.
Q: Based on the table below for a perfectly competitive firm: Fixed Variable Total Quantity Cost Cost…
A: Marginal Cost = Change in Total Cost / Change in Quantity X = (1000-500)/(40-30) X = 500/10 = 50…
Q: If a firm is making negative economic profit in a perfectly competitive output market (as described…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the…
A: Variable cost is that cost component, which increases (decreases) with increase (decrease) in…
Q: ATC MC MR Quantity of cherries %24
A: Under perfect competition firms are price takers. The optimum level of output of a perfectly…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
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: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The…
A: In a perfectly competitive market, firms do not have any market power so price is constant. Price is…
Q: Assume quantities need not be integers. A firm in a perfectly competitive market with MC(q) = 2 +…
A: A perfect competitive firm has Marginal cost equals to Price. MR = P Profit maximizing quantity is…
Q: The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is:…
A: The cost function measures the minimum cost of manufacturing a given level of output for a few fixed…
Q: At the current short-run market price, firms will in the short run. In the long run,
A: here it is seen that the firms are not incurring any fixed cost. and the price is equal to average…
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: Suppose there are 10 firms in this market, each of which has the cost curves previously shown. On…
A: Upward sloping of Marginal cost curve is the supply. Firm will supply above average variable cost…
Q: Suppose that the current price per unit of the good is 10 pounds. A perfectly competitive firm faces…
A: Introduction A perfectly competitive firm is where there are large number of firms available in the…
Q: A market is at long-run equilibrium of P* = $194 and Q* = 76800 units. All firms in the market are…
A: Firms in perfect competition are price takers and accept the market price as given. They charge P=…
Q: PROBLEM #1 The cost function for a typical firm, competing in a perfectly competitive market, is as…
A: Average variable cost (AVC) = Average total cost (ATC) / quantity (q) Marginal cost (MC) =…
Q: the perfectly competitive market, the average total cost of the small business owner will be: A)2 B)…
A: Equilibrium under perfect competition is at price = MC level MC insects the pice at 23 units At Q =…
Q: perfect competition
A: There are different forms of market such as Perfect and Imperfect form. These includes different…
Q: Suppose the total cost to produce quantity q is TC(q) = 10 + q^2/10, and hence, marginal cost is…
A: Given : TC(q) = 10 + q^2/10 MC(q) = q/5 p = 10
Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?
A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…
Q: The following cost data are for a fırm in a purely competitive market. TC 1 20 36 51 4 58 If the…
A: Firms in perfect competition are price takers that is they accept the market price as given.
Q: Suppose the short-run cost function of a perfectly competitive firm is C(q)=10q-q^2+1/3q^3+100 Solve…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: Imagine a firm in a perfectly competitive market has the short run cost function SRTC=200+10q+0.5q2,…
A: Short-run total cost (SRTC) The SRTC is a cost in the production process that has a short-term…
Q: what is the amount of the total fix cost
A: Total cost (TC) = total fixed cost (TFC) + total variable cost (TVC) Average total cost (ATC) = TC…
Q: A firm in a perfectly competitive market has the following cost function: c(q) = 8q2 + 228. If the…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: Consider a perfectly competitive market for wheat in San Diego. There are 80 firms in the industry,…
A: No of firms in the industry = 80 Supply curve of each firm starts with minimum AVC and is equal to…
Q: In the short run, a perfectly competitive firm A) can vary all its inputs. B) can make only zero…
A: A perfectly competitive market has a large number of firms and a large number of buyers, each buyer…
Q: Consider a firm that is indifferent between shutting down and continuing to operate in the short run…
A: Given that, Market price = $50 Total cost = $600 Average fixed cost = $10 We have to find revenue of…
Q: where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is…
A: The competitive market or perfect competition is a market type which is characterized by a large…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Average cost is the ratio of the total cost and the total output produced. Whereas, the marginal…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Answer: A perfectly competitive firm maximizes its profit where the average total cost (ATC) is…
Q: Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin…
A: Perfect competition is a market arrangement in which all businesses or enterprises offer the same…
Q: The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is:…
A: Introduction: In economics, the marginal cost of production is the difference in total production…
Q: A price taking firm has zero fixed cost and increasing marginal cost. What quantity does it produce?…
A: A price-taking firm is such a firm that accepts the market price. A market price is a price that is…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: The quantity, q = 100 The average revenue is given as = $10 The formula for total revenue is as…
Q: Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 65+4q2.…
A: A "demand function" describes the relationship between the price of a good or service and the…
Q: A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 -…
A: Hi! thankyou for the question but as per the guidelines, we answer only 3 parts at one time. Kindly…
Q: Suppose that the market for dress shirts is a perfectly competitive market. The following graph…
A: Perfectly competitive market is a type of market in which homogeneous goods, that are perfectly…
Q: A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of…
A: Answer to the question is as follows :
Q: In a perfectly competitive market, suppose that there are 1280 firms. Market demand is given by…
A: In perfect competition, there are many firms producing identical goods. The firms are price takers
Q: In competitive markets economic profit becomes zero in the long-run. However, it is also possible…
A: In competitive markets, economic profit is zero, but with help of technological advancement, some…
Q: At the current short-run market price, firms will in the short run. In the long run,
A: please find the answer below.
Q: Firms in the market for dog food are selling in a purely competitive market. A firm producing dog…
A: A competitive market is one in which numerous producers compete for the goods and services that we,…
Q: A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price…
A: In perfect competition, eqm is found by the intersection of MC(marginal cost) and P(price).…
Q: A market is at the perfectly competitive long run equilibrium, with market price equal to 2. All…
A: In a competitive industry, the long-run period facilitates entry and entry of firms thanks to no…
COnsider the following firm in a competitive market:
total cost= 50+.5Q Q= Quantity
What is its fixed cost?
what is its variable cost?
Costs are the expenses that a firm incurs in the production of goods and services. In the short run, firms incur fixed costs. In the long run, there are no fixed costs as all costs are variable in nature.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin (her only product) is $3. If Lily's marginal cost function is given by MC=0.1q: (i) Lily's profit-maximizing level of output is _______ (ii) Lily's variable profit is _______ (iii) The producer surplus is _______ If Lily also has a fixed cost of $50, then: (iv) her total profit is _______ Assuming Lily cannot avoid the fixed cost, should Lily continue to produce orshut down?A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?
- In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market is $50. a. What is the Marginal Cost for the firm? b. What is the Profit Maximizing Output? c. What is the Total Profit the firm receives? d. Should this firm continue to produce in the short run? Please explain. e. If the price is $20, should the firm continue to produce? Please explain.In a certain perfectly competitive market, there are 150 firms, and the short-run total cost function of each is given by Short Term Total Cost (q) = 3q³ - 16q² + 40q + 432 (note that "q" is the quantity produced by the firm). Besides that, any firm (active or potential entrant) can produce according to the total cost function Short Term Total Cost (q) = 2q³ - 16q² + 148q (desconsidering the entrance or exit of firms). Furthermore, the inverse aggregate demand function of this market corresponds to Pd(Q) = 676 - 0.56Q (which "Q" is the total quantity demanded). Based on this information, please check True or False in the arguments below: 1-The profit that each producer makes in the short-run competitive equilibrium is greater than the profit that each producer makes in the long-run competitive equilibrium. True or False? 2-In the long-term competitive equilibrium, there are 200 active firms in this market. True or False? 3-The price p* = 105 and the quantity Q* = 750 composes the…Consider a firm in a perfectly competitive market. The firm’s marginal cost, average cost and average variable costs are given by the figure below. Suppose that the current market price is p=10. In order to maximize its profit, the firm will produce q = ___________ units of output.
- The table below shows the average cost (AC) for a purely competitive market. The average revenue (AR) is constant at RM5 per unit and the firm’s total fixed cost (TFC) is RM4. If the average revenue falls to RM3 per unit, calculate the firm’s new profit or loss at the equilibrium. Based on your answer, should the firm continue or stop the production? Justify. Output (Units) Total Revenue (RM) Average Cost (RM) Total Cost (RM) Marginal Cost (RM) Marginal Revenue (RM) 1 8.0 2 5.5 3 4.0 4 3.5 5 3.8 6 4.5 7 6.0For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y^2 + 5y + 6. a) Determine the firm's marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity, y. b) What is the firm's short-run shutdown condition? c) Find the firm's short-run shutdown price, p*. That is, if the market price falls below p*, the firm will shut down.For an individual firm in a perfectly competitive market, let its cost function be c(y) = 8y² + 5y + 6. a) Determine the firm’s marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity y. b) What is the firm’s short-run shutdown condition? c) Find the firm’s short-run shutdown price pˆ. That is, if the market price falls below pˆ, the firm will shutdown.
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…Suppose that each firm in a competitive industry has the following costs: where q is an individual firm’s quantity produced. The market demand curve for this product is where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm’s profit or loss. Is there incentive for firms to enter or exit? In the long run with…Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.