For a profit-maximizing, perfectly competitive firm with marginal cost function MC(q) = q² + 3, find the following. Illustrate your results on a graph. i. Producer surplus (PS) at price Po = 7 ii. Producer surplus (PS) at price p = 12 %3D iii. Change in producer surplus (APS) resulting from price change form po = 7 to ôp = 12

For a profit-maximizing, perfectly competitive firm with marginal cost function MC(q) = q² + 3, find the following. Illustrate your results on a graph. i. Producer surplus (PS) at price Po = 7 ii. Producer surplus (PS) at price p = 12 %3D iii. Change in producer surplus (APS) resulting from price change form po = 7 to ôp = 12

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 2QP

See similar textbooks

Similar questions

There are currently 200 perfectly competitive firms producing output q. The cost function of each firm is C(q)=196+4q2 . The demand in this market is QD = 3,920-10P. Compute the equilibrium price and market quantity. Compute the profit of each firm. Compute the producer surplus in this market. Please show all work. (Mainly confused about how to find profit) Answers: p=112, Q=2,800, profit=588, PS=156,800
Consider a market with demand given by Q=100-P. The market is perfectly competitive with 60 firms and all have same cost structure. They all have no fixed costs and a constant variable cost of USD 40. How do we get the market supply curve for this situation.
In competitive markets economic profit becomes zero in the long-run. However, it is also possible for somefirms to earn a greater accounting profit and to enjoy a higher producer surplus than other firms. How is itpossible? Explain in detail
Suppose that the firm operates in a perfectly competitive market. The market price of his product is $4. The firm estimates its cost of production with the following cost function: TC=50+20q-5q2+0.33q3 a. What level of output should the firm produce to maximize its profit? b. Determine the level of profit at equilibrium. c. What minimum price is required by the firm to stay in the market?
The TC function of a perfectly competitive firm that sells its good at the price (P) = $4 is: TC = 0.04Q3 -- 0.9 Q2 + 10Q + 5 Determine the best level of output for the firm. Find the level of profit at the best level of output of the firm. Draw a Figure of your answer to part (a) and (b).
if a competitive firm's marginal costs always increase with output then at the profit maximising output level, producer surplus is
Glowglobes are produced by identical firms in a perfectly competitivemarket. There are 17 firms in the market. Each firm's Total Cost functionis TC=171+4q+q^2 and Marginal Cost function is MC=4+2q. Marketdemand is Q=428-P. What is the short-run equilibrium market price?