If the short-run marginal and average variable cost curves for a competitive firm are given by SMC = 2 + 4Q and AVC=2+3Q, how many units of output will it produce at a market price of 34? Instructions: Round your answers to the nearest whole number. Q= At what level of fixed cost will this firm earn zero economic profit? $

If the short-run marginal and average variable cost curves for a competitive firm are given by SMC = 2 + 4Q and AVC=2+3Q, how many units of output will it produce at a market price of 34? Instructions: Round your answers to the nearest whole number. Q= At what level of fixed cost will this firm earn zero economic profit? $

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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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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Suppose that the long-run cost function for a perfectly competitive firm in the personal computer business is C(q) = 4g + 2500 for q> 0. How many units does this firm produce in the long-run? What will be the price in the long-run? What is the profit of the firm in the long-run? The firm produces type your answer..... units of output. The price is $ type your answer.... in the long-run. The firm's profit is $ type your answer.... the long-run. in
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