$5 0 100 MC ATC 20 10 d=MR $5 2 0 S D 1,000 4. The consumer's surplus in the above market is The producer's surplus in the above market is 5. If every firm has exactly the same cost curves as the firm on the left, then there would be in the market. firms 6. If there is an increase in demand in the above market, will other firms eventually enter or exit the market? Will this drive the market price up or down?
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- 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.Suppose Malik is one of the many sellers of the milk in Karachi who owns his business with the title Malik Milk Firm. The customers of milk have perfect knowledge about the milk and are indifferent between the milk sold by Malik, Shabbir and other producers. If following is the total cost of producing milk. Answer the given questions. Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much milk will Malik as an individual firm would supply in the market at the price of Rs. 14 per liter? How will the supply of milk be effected if the price rises to Rs.16 per liter?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.
- Fred Co. is the only producer in the market. The market demand curve and total cost curve are given as: Q = 240 -0.25P, and TC = 50Q -0.5Q2. To maximize profit, Fred BCo. will produceAssume that you are an economic consultant. The firm that hired you has provided the information below. The firm is a price searcher and wants to maximize its profit (or minimize its loss). InformationPrice: $4Elasticity of demand at price of $4 is Ed=-1Quantity of output: 2000Total variable cost: 4000Average fixed cost: 1Marginal cost is constant and equal to the average variable cost: MC=ACV=2. Which of the following answers correctly describes this case? a) The firm is maximizing profits at the current price of $4.b) The firm should increase price and reduce quantity produced.c) None of the other answersd) Firm should reduce price and increase quantity produced.1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.
- Demand and Supply equations of a particular market are as follows.Qd = 2100 – 7PQs = – 1200 + 5PWhere, Qd is the quantity demanded, Qs is the quantity supplied and P is the market price. By all means, this market is considered as a perfectly competitive market. The average cost information of a selected firm in this market is given below.AFC = 450/QAVC = (155Q + 2Q2)/Q a) Calculate the profit maximizing output level of the firm based on Marginal approach.b) Calculate the profit (in Rupees) at the profit maximizing output level.A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9. a- . If the superior plant manager also owned the textile firm, she would earn$___________ of economic profit. Explain your answerSuppose Malik is one of the many sellers of milk in Karachi who owns his business with the title Malik Milk Firm. The customers of milk have perfect knowledge about the milk and are indifferent between the milk sold by Malik, Shabbir, and other producers. If following is the total cost of producing milk. Answer the given questions. Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much milk will Malik as an individual firm would supply in the market at the price of Rs. 14 per liter? How will the supply of milk be affected if the price rises to Rs 16 per liter? please provide a complete solution with all the steps including formulas and proper working
- Eccles Incorporated (based in Ogden) manufactures precision steel sprockets for applications including transportation, defense, logistics and sporting goods. The total cost curve for Eccles Incorporated sprockets is given by Total Cost = 15, 600 + 0.5Q + 0.025Q^2, where Q is the number of sprockets Eccles Incorporated manufactures in a month. The Eccles Incorporated marginal cost curve is given by Marginal Cost = 0.5 + 0.05Q. (a) Derive and graph the Eccles Incorporated firm-level supply curve for sprockets.Devlin-McGregor (https://devlinmacgregor.com/) is the sole producer of Provasic which is made using only Soma. One unit of Soma produces one unit of Provasic. There are no other inputs into the Provasic production process. Devlin-McGregor purchases Soma from a monopoly supplier of that product. Presently, the supplier charges Devlin-McGregor a constant amount per unit of Soma. The Soma supplier is contemplating a change in how it prices. In return for discounting the unit price of Soma by 100×α %, it wants 100×α % of Devlin-McGregor’s revenues from the sale of Provasic. Is there a choice of α ∈ [0, 1] which would make the Soma supplier better off? Please, don't copy your answer from anywhere, and show your own work!PakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. (need answers of 2 & 3) 1. Given your calculations in (a), illustrate the demand, marginal revenue and marginal cost curves of the firm in a graph. 2. If we were to compare PakMonoG with a perfect competitive firm in the market, are there differences in characteristics of the two structures? 3. What are welfare implications? Is total societal welfare of the firm higher or lower than that of a competitive firm? Support your answer using the graph in (b) above.