If the total costs of producing 1,500 units of output is $13,500 and this output sold to consumers for a total of $18,000, then the firm would earn economic profits of $4,500. $18,000. $21,000. $13,500. $31,500.
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If the total costs of producing 1,500 units of output is $13,500 and this output sold to consumers for a total of $18,000, then the firm would earn economic profits of
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$4,500.
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$18,000.
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$21,000.
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$13,500.
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$31,500.
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- Q24 Consider a perfectly competitive firm in the following position: output = 4000, market price = $1, total fixed costs = $2000, total variable costs = $4500, and marginal cost = $1. To maximise profits, the firm should... a. Produce zero output. b. Increase the market price. c. Not change its output. d. None of the other options are correct. e. Expand its output.What are total fixed costs for the Zonker Company? $0 $8 $12 $20 2. The marginal cost to the Zonker Company of producing the third unit of output is $__________ and the marginal cost of producing the sixth unit of output is $__________. $10; $25 $36; $93 $24; $81 $25; $40 3. If the market price is $15 per unit and Zonker can sell all it wants at that price, then Zonker maximizes profit in the short run by producing __________ units per week. 5 3 4 0 4. If the market price fell to $11 per unit, Zonker maximizes profit in the short run by producing __________ units per week. a. 1 b. 2 c. 3 d. 0 5. The lowest short run average total cost for Zonkers occurs when they produce ________ units per week. 2 3 4 5 6. if the price-taking firm in Exhibit 0126 is currently producing 6 units, then to maximize profits in the short run, it should keep producing 6 units increase production to 13 units increase production to 14 units increase production…At its current level of production, a profit-maximizing firm in a competitive market receives $15.00 for each unit it produces and faces an average total cost of $13.00. At the market place of $15 per unit, the firms marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firms current profit? What is likely to occur in this market and why?
- A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? Explain.The cost function for a firm is given by C(Q) = 5+q^2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned?Suppose a competitive firm operation under the following conditions: price of output is $20, the profit maximizing level of output is 32,000 units, and the total cost(full economic cost) of producing these 32,000 units is $600,000. The firm’s only fixed factor of production (capital) is a $1 million building and you would like to include the opportunity cost of this investment at the going interest rate of 5%. Should this firm close down immediately? What will it do in the long run?
- At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm’s marginal-cost curve crosses the marginal-revenue curve at an output level of 1000 units. What is the firm’s current profit? What is likely to occur in this market, and why?You are the manager and selling your product in a perfectly competitive firm market. Your firm and other firms sell the product at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2 Q2. What level of output should you choose to maximize profits? What are your firm’s short run profits? What will happen in your market in the long run? Explain.Which of the following represents a long-run decision for the firm? a. rehiring workers who were previously laid off. b. determining what price to charge for a given level of output. c. deciding how much output to supply to the market at the current market price. d. building another wing on the plant in order to add a new assembly line. answer. (d. building another wing on the plant in order to add a new assembly line.) Please help me explain this questions. Thanks in advance
- The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $20, what price should the manager of this firm put on the product? What level of output should be produced to maximize profits? How much profit will be earned? As per your solution provided The profit is maximized: MC=MR=P C(Q) = 5+Q2 MC= dC/dQ = 2Q ...what is dC and dQ here??? and why dC/dQ = 2Q?? please assistyou are the manager of a firm that sells its product in a perfectly competitive market at a price of $60. Your firm's total cost function is C= 50 + 3Q 2 and your firm's marginal cost function is MC = 6Q. What level of profits will you make in the short-run?A firm operates in a pure competition market whereby the market price for a product, product A, is currently $15.This firm has an output of Q and faces a total cost curve: TC =1/3Q^3 − 6Q^2 + 44Q, and the resultingmarginal cost curve is given: MC = Q^2- 12Q + 44.It is required that the firm has an output of at least 5.(i) What is the maximum profit of the company in the short run? (ii) At the price of $15, what is the break-even point?
