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Consider the following information:
TC = 15 + 5Q + Q2
Q = 30 – P
Where TC is total cost, Q is the total product and P is price. What is the correct expression for total profit?
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- A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?You are running a chocolate factory and need to decide on the price to sell the chocolate as well as the quantity to produce. Demand curve; Q = 8.5 - 0.05 * P. The cost curve is C = 100 + 38Q. The business is a profit maximizer. 1) What is the best price to charge each week? 2) What is the best quantity to make each week? 3) What are the expected profits Is it possible to get this in an excel with equation formulas6. Consider the following information: TC = 20 + 5Q + Q2 Q = 25 – P Where TC is total cost, Q is the total product and P is price. What is the correct expression for total profit? a. 20Q + 5Q2 +20 b. 20 – 2Q2 – Q c. 20Q – 2Q2 – 20 d. Q + 2Q2 + 20
- Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? ExplainA firm’s costs are given in the following table. q TC TFC TVC AVC ATC MC 0 RM50 1 70 2 80 3 90 4 110 5 140 6 175 7 220 8 280 9 360 10 450 1.1) Complete the table. 1.2) Draw a graph for each AVC, ATC and MC on one graph. 1.3) Suppose market price is RM20. How much will the firm produce in the short run? How much are total profits? 1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits?You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $8 Market price = $13 Quantity MC ($) 1 10 2 8 3 9 4 11 5 14 6 18 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much?
- Suppose Poornima runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Poornima's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Poornima produces. Calculate Poornima's marginal revenue and marginal cost for the first seven teddy bears she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Poornima's profit is maximized when she produces teddy bears. When she does this, the marginal cost of the last teddy bear she produces is , which is than the price Poornima receives for each teddy bear she sells. The marginal cost of producing an additional teddy bear (that…Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…Use Table: Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. If the market price of a tub of ice cream is $50, what quantity will Sergei produce to maximize profit?
- Given that the restaurant sells 100 bowls of Super Chasu Ramen at $20.00 per bowl, is the firm able to make profit or have a loss? Why or why not? Explain.If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the firm fixed cost? A. 13q+0.4q2 B. 270 C. 270+13q D. 27
