For a particular perfectly competitive firm C(q)-10+2q+2q?. If the market price is equal to 20, what is the firm output, q*? O a. 0< q* <3 O b. 3< q* <6 O c. 6< q* <12 O d. 12< q*<24 O e. None of the above
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answer the following questions please
In a pure competitive market setting, each seller does not enjoy any power to regulate the prevailing price via its supply to the market. This is prominently due to its irrelevant share in market supply and production of a good which is exactly similar to that of other firms. As a consequence, it can only produce a quantity where the market price equates with its marginal cost of production.
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- Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT PER WEEK TOTAL COSTS AFC AVC ATC MC 0 $100 1 150 2 175 3 190 4 210 5 240 6 280 7 330 8 390 9 460 10 540 Fill in the missing values in the table. Suppose the equilibrium price in the table lamp market is $50. How many table lamps should Harry produce, and how much profit will he make? If next week the equilibrium price of table lamps drops to $30, should Harry shut down?Answer the following, providing a graphical illustration along with your answer where necessary:a) What is the profit maximising condition in a market with perfect competition?b) Explain what is meant by abnormal profit? What is the adjustment process from short-runabnormal profit to long-run equilibrium in a perfectly competitive market?c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A’spayoff/Firm B’s payoff)Firm BFirm APrice £2 Price £1Price £2 £20,000/£20,000 £10,000/£24,000Price £1 £24,000/£10,000 £12,000/£12,000Assume you are the pricing manager at Firm A;i) What is your payoff for a ‘maximin’ strategy?ii) What is your payoff for a ‘maximax’ strategy?iii) Does a dominant strategy exist within this prisoners’ dilemma? QUESTION A AND B ALREADY SOLVED, FROM C ONLY !!!
- Answer the following, providing a graphical illustration along with your answer where necessary:a) What is the profit maximising condition in a market with perfect competition?b) Explain what is meant by abnormal profit? What is the adjustment process from short-runabnormal profit to long-run equilibrium in a perfectly competitive market?c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A’spayoff/Firm B’s payoff)Firm BFirm APrice £2 Price £1Price £2 £20,000/£20,000 £10,000/£24,000Price £1 £24,000/£10,000 £12,000/£12,000Assume you are the pricing manager at Firm A;i) What is your payoff for a ‘maximin’ strategy?ii) What is your payoff for a ‘maximax’ strategy?iii) Does a dominant strategy exist within this prisoners’ dilemma?Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm’s selling price is AUD 15, the marginal revenue is also AUD15. Complete the table below and answer the questions that follow. Quantity (Kg) AVC AFC ATC MC 2.50 7.50 5.10 3.50 9.00 3.00 9.00 4.50 10.00 2.50 12.50 5.50 14.00 1.80 13.00 6.00 18.00 1.67 15.00 10.00 25.00 1.43 16.00 Qty = Quantity; AVC=Average variable cost; AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of profit/loss at this optimal point. Show your work.Suppose that a perfectly competitive firm faces a market price of $7 per unit. The output level corresponding to a marginal cost of $7 per unit is 1,000 units. At 1,000 units, its average variable costs equal $8 per unit, and its average fixed costs equal $1 per unit. The firm's profit-maximizing (or loss-minimizing) output level = . Write number only. The firm's economic profit (or loss) at this output level = . Write either profit number or loss number: e.g. profit 2000.
- Explain how purely competitive firms can use the marginal-revenue–marginal-cost approach to maximize profits or minimize losses in the short run.Assume that the gold-mining industry is perfectly competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for a representative gold mine. b) Suppose that an increase in jewelry demand induces a surge in the demand for gold. Using your diagrams, show what happens in the short run to the gold market and to each existing gold mine. c) If the demand for gold remains high, what would happen to the price over time? Specifically, would the new long-run equilibrium price be above, below, or equal to the short-run equilibrium price in part b)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The following table shows information for Hayek’s Maps, a perfectly competitive firm. a. Complete the MC column in the table: Output TC MC 0 $ 95 / 1 190 2 275 3 350 4 450 5 565 6 685 7 845 8 1,045 b. Given the prices in table below, fill in columns 2, 3, 4 and 5 of table. (Assume that partial units cannot be produced.) If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (1) Price (2) Output (3) Total Revenue (4) Total Cost (5) Profit/Loss (6) Total Supply (7) Total Demand $ 89 800 98 780 107 740 116 700 125 660 134 620 c. Suppose there are 110 firms identical to this one. Show the total supply in column 6 of table above. d. If the market demand is as shown in column 7 of table , what will be the equilibrium price? What quantity will…
- Suppose that, in a perfectly competitive industry, every firm has total cost function TC(Q)= 5million +4Q+Q²/50,000. Demand is given by D(p) - 375,000(42-2p). (a) If the industry consists of five firms, with no possibility of entry or exit, how much does each firm produce in equilibrium? (b) What is the profit of each firm? (c) How would you answer to part (a) change if there would be a possibility of entry and/or exit? Provide a sketch of how one would solve for the equilibrium outcome.Fill in the following table for a firm in a perfectly competitive industry. Quantity Price TR TC Profit ATC MR MC 5 $100 $500 $300 6 $100 $330 $100 $30 7 $100 $420 8 $100 $520 9 $100 $630 What is the highest profit possible? What is the profit maximizing price? What is the profit maximizing level of output? (Pick one if there are multiple levels of output with the same profit.) What is the average total cost at profit maximization? (Use the same Q you used in c.) What is the profit per unit at profit maximization? How you do know that this is a table for a perfectly competitive firm? In the table above, if you only had the columns Quantity, MR, and MC, explain how you still be able to find the profit-maximizing level of output.A perfectly competitive industry consists of many identical firms, each with a long-run total cost function of TC = 500Q-20Q^2+0.5Q^3. a. In long-run equilibrium, how much will each firm produce? b. What is the long-run equilibrium price? c. The industry's demand curve is ?? = 48,000 − 60?. How many firms are in the I ndustry? d. If the industry demand decreases to ?? = 30,000 − 80? how will the industry respond?
