In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well

Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…

A: Given values: The market price in the short run = $45

Q: Suppose the market for coffee is characterized by perfect competition. Assume that all firms are…

A: Answer: Given, LATC (long-run average total cost) function: LATC=Q+5+25Q LMC (long-run marginal…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: The perfect competition would result in the large number of buyers and sellers in the market. The…

Q: Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are…

A: a) Marginal cost is expanding/increasing as an ever-increasing number of variable input sources are…

Q: Assume perfect competition takes place in the market for hotel rooms. The the current market…

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: which of the following statements is incorrect? a) Price equals marginal cost. b) Firms are price…

A: Let us first analyse the type of market the question is talking about. From the first option, that…

Q: um price and

A: A perfectly competitive market is considered to be a hypothetical market where the competition is at…

Q: Use the information provided below for Questions 17, 18, and 19. There are 100 perfectly competitive…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: For the equilibrium price & quantity under perfect competition:

Q: Consider a bakery that makes loaves of bread, and it has three different sites where it can produce…

A: Marginal cost refers to additional cost that occurs due to producing one more unit of a good. The…

Q: Suppose there are 1,000 hot pretzel stands operating in New York City. Each stand has the usual…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market,…

A: Perfect competition is an ideal kind of market structure where all makers and customers have full…

Q: The following graph shows the demand curve for a good and the long run average cost curve for a…

A: The long-run normal expense curve shows the most minimal all-out cost to create a given degree of…

Q: Suppose that purely competitive firms producing cashews discover that P exceeds MC. Is their…

A: The purely competitive firm produces cashews with price that exceeds the marginal cost. Thus, the…

Q: Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and…

A: Since Brown is a perfect competition, Farmer Brown will charge the price of $22 per box of peaches.…

Q: Refer to the figure below. Assuming the firm chooses the level of output that maximizes profit, what…

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: A competitive market is characterized by a large number of buyers and sellers. The equilibrium price…

Q: Suppose a firm has market power and faces a downward sloping demand curve for its product, and its…

A: Since it is given that the firm has market power and it faces downward sloping demand curve and…

Q: Economists consider perfect competition as more efficient than other types of market structures,…

A: Firms in a perfectly competitive market in the long run end up earning zero or normal profits. This…

Q: To maximize economic profit, a competitive firm will produce a quantity where Group of answer…

A: A perfectly competitive firm is a price taker, which means it takes the price that is determined by…

Q: When a competitive price-searcher market is in long-run equilibrium, the firms will earn economic…

A: In a perfectly competitive market, firms produce identical goods. Consumers can not differentiate…

Q: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…

A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…

Q: Suppose the demand function for widgets is Q(p) = 60 – p, and all firms that produce widgets have…

A: We are given the demand function for widgets as Q(p) = 60 – pAnd, the cost function is given as C(q)…

Q: The part below (in bold) describes a firm that was an early mover in its market. In light of the…

A: As an early mover is likely to be the basis of a sustainable competitive advantage because the…

Q: Consider the competitive market for steel. Assume that, regardless of how many firms are in the…

A: Below is the table:

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: The equilibrium is established where the P=MC.

Q: How would you explain allocative efficiency in a purely competitive market structure?   Group of…

A: By allocative efficiency, we mean that a particular production point is selected that is socially…

Q: Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The…

A: Given, the market for tilapia, there are two producers. a) At market price, P = $2.50, Ripple rock…

Q: The golden rule of profit maximization states that any firm maximizes profit by producing where:

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: Answer: Note: since I do not have the same graphing tool the graph is presented differently. (1).…

Q: Suppose the daily demand function for pizza in St. Catharines is Qd = 1525 – 5P. For one pizza…

A: Given, Qd = 1525 − 5P C(q) = 3q+0.01q2 MC = 3 + 0.02q

Q: Suppose that the market for black leather purses is a competitive market. The following graph shows…

A: If a firm is perfectly competitive, it can sell as much as it wants as long as it accepts the…

Q: How would the introduction of legal or technical barrier to entry affect the long-run equilibrium in…

A: *Answer:

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A:

Q: n competitive markets, there are many small firms with each firm unable to influence the market…

A: P = $20 TC = 50 + 2Q + 3Q2 MC = 2 + 6 Q Competitive market equilibrium,  P = MC  20 = 2 + 6 Q Q…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: In competitive market equilibrium occurs at the intersection of demand and supply curves.

Q: When the number of competing firms is small in a market, is this market necessarily different from a…

A: Market structure is categorized on the basis of number of firms and type of the goods. If number of…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: The perfect competition is a market that deals with a large number of buyers and sellers selling the…

Q: Show what happens in the short run on both graphs when a new medical study shows soybeans to be…

A: When the study made on the soyabean results that it is carcinogenic, the market demand for the…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A: Given: Price = $20 TC = 50 +2Q + 3Q2 MC= dTC/dQ = 2+6Q

Q: Consider the competitive firm in Figure 3-1. At the profit maximizing level of output, the firm is…

A: Economic profit or loss can be understood as the difference which occur between revenue from sales…

Q: The following diagrams show the market for a good, as well as the cost curves for an individual firm…

A: Equilibrium is achieved at a point where demand curve intersects the supply curve. Breakeven occurs…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A: Perfect competition:   The perfect competitive market is a type of market, with a large number of…

Q: A slight increase in the marginal cost of a firm definitely leads to a reduction in its output if…

A: In the oligopoly market, any change in the firm's output, cost or pricing will lead affect its…

Q: Economists identify competitive markets as having these characteristics: • Identical products •…

A: A market is said to be competitive if the size of the firms is small as compared to the market size.…