Consider the market demand schedule: Price Quantity Demanded 10 45,000 11 35,000 12 25,000 15,000 5,000 13 14 and a given firm's cost structure: Quantity Marginal Cost Average Total Cost 100 11.00 14.00 150 12.00 13.50 200 13.00 13.00 250 14.00 13.50 300 15.00 14.00 Suppose there are 200 identical firms operating in the perfectly competitive market. In the long-run equilibrium, the number of firms operating will be and the market price will be S

Consider the market demand schedule: Price Quantity Demanded 10 45,000 11 35,000 12 25,000 15,000 5,000 13 14 and a given firm's cost structure: Quantity Marginal Cost Average Total Cost 100 11.00 14.00 150 12.00 13.50 200 13.00 13.00 250 14.00 13.50 300 15.00 14.00 Suppose there are 200 identical firms operating in the perfectly competitive market. In the long-run equilibrium, the number of firms operating will be and the market price will be S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 −PThere are 9 firms in the market.a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve.b) Give the equation for each firm’s supply curve.the average-total-cost curve at its minimum? What is marginal cost and average totalc) Give the equation for the market supply curve for the short run in which the numbercost at that quantity?
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Fill the table below given Perfect Competition Conditions Quantity Demanded/ Produced Total Cost Average Fixed Cost Marginal Cost Average Total Cost Average Variable Cost Total Revenue Price=90 Profit 0 $300 -- -- 1 $310 2 $330 3 $360 4 $400 5 $450 6 $510 7 $580 8 $660 9 $750 10 $850 Calculate the Marginal and Average Costs. Calculate the Total Revenue. Draw the Average, and Marginal cost functions. Draw the Marginal Revenue Curve. Where do they meet and at what level of output? At what level is profit maximized? What are total revenue, total cost and the total amount of profit at that level?
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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. Determine the profit-maximizing output and show the equilibrium of the firm in a diagram. 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 6.0
Answer the question on the basis of the following demand and cost data for a specific firm. Demand Data Cost Data (1) Price (2) Price (3) Quantity Total Output Total Cost $ 50 $ 35 2 2 $ 45 45 30 3 3 55 40 25 4 4 70 35 20 5 5 90 30 15 6 6 115 25 10 7 7 145 20 5 8 8 180 Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will Multiple Choice decrease to zero. decrease to $25. decrease to $70. decrease to $35.
A perfectly competitive firm produces good X and has the following weekly cost data. ( Q = total output; TFC = total fixed cost; TVC = total variable cost): Q (units) TFC ($) TVC $ TC ($) ATC $ AVC $ MC $ 0 0 120 1 172 2 219 3 261 4 300 5 342 6 389 7 441 8 499 9 565 10 641 (a) Complete the above table. Round off values to the nearest two decimal places. (b) For each of the following prices determine this firm’s profit- maximising (or loss-minimising) output per week in the short run, and calculate the weekly profit or loss. Show your calculations (to two decimal places). (b.i) $42.50 (b.ii) $47.50…