Refer to Scenario 14-2. To maximize its profit, the firm should increase its output. continue to produce 1,000 units. decrease its output but continue to produce. shut down.
Q: Which of the following is TRUE in long-run competitive equilibrium ("market saturation")? Group of…
A: The long run competitive market is the one where there is free entry and exit of firms, large number…
Q: The smallest positive level of output that the firm will produce is equal to Q4 Q2 Q3 Q1
A: The profit-maximizing level of output is that point where two conditions hold true, that is marginal…
Q: Suppose a firm has the cost function C = 100+2q2 in a perfectly competitive market. Suppose price…
A: Given Cost function = 100+2q^2 P = 20 a) In a perfect competition market P = MC MC = derivative…
Q: In economics, a firm earns a normal profit when its total revenue equals its total economic costs.…
A: In economics, a firm enjoys normal profit when the difference between the total revenue and the…
Q: Given that the total cost= the firm is q=150P+30. 1 59³ − 0.2q² + q +40, the short-run supply…
A: We have given cost function and a firm produces output where P=Mc
Q: The cost function for a firm is given by CQ) = 5 + Q If the firm sells output in a perfectly…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: A competitive firm uses two variable factors to produce its output, with a production function y =…
A: A firm in its initial days must determine the amount of output it must produce before turning…
Q: Suppose a firm has the following total cost function TC = 100 + 2q2. If price equals $20, what is…
A: A firm sets the price and quantity at the point where marginal revenue is equal to the marginal…
Q: The marginal cost of supplying another unit of output of an electronic product on the internet is…
A: Marginal cost is the cost incurred on one additional unit produced as output
Q: Question 17 True/Fals: In the short run, if a firm is making losses, it can exit the market. Group…
A: The break even point is defined as the point at which the company is profitable but not losing…
Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…
A: 1) Short-run supply curve of the the firm in a competitive market is given by the marginal cost.…
Q: ) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total loss.…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: Question 17 Refer to Figure 5-1. At which price range will the firm continue to operate in the short…
A: "Firms in a perfectly competitive market are price takers and can not influence the price. These…
Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…
A: Here, given information is: Output level= 100 units Average total cost= $11 Total variable cost=…
Q: Question 56 The upward sloping portion of the marginal cost curve represents the supply of a…
A: Answer 56. Marginal cost is the additional cost incurred from producing one more unit of a good or…
Q: If a perfectly competitive firm is producing at the output level where marginal revenue is equal to…
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: Consider a perfectly competitive industry where the typical firm has long run Total Cost TCLR = q2 +…
A: We will use perfect competition, Efficient scale production theories to answer this question.
Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…
A: here we find the correct answer as follow;
Q: A perfectly competitive firm is producing the profit-maximizing output level when their variable…
A: Variable cost refers to the cost incurred by the firm on the basis of output. This implies it varies…
Q: A firm has two plants with marginal costs: MC1(y )=3y+2 and MC2(y )=8y. Assuming that the firm is a…
A:
Q: if a perfectly competitive firm's output price is $10 and the firm is producing 500 units with a…
A: (Q) If a perfectly competitive firm's output price is $10 and the firm is producing 500 units with a…
Q: The long run is characterized by: Multiple Choice at least one fixed input. the relevance of the law…
A: The long run is a period of time in which all factors of production and costs are variable. In the…
Q: Suppose a competitive firm operation under the following conditions: price of output is $20, the…
A: The best or optimum level of output of the firm is given at the point where P or MR = MC. At this…
Q: Q52 If firms in a competitive industry are earning positive economic profits, in the long run we…
A: Q52 If firms in a competitive industry are earning positive economic profits, in the long run we…
Q: Complete the following statements. In an increasing-cost industry, an increase in demand will result…
A: When talking about increasing cost industry, it is the industry in which a firm faces an increase in…
Q: Solve the attahment.
A: Given: Cost function: C(Q) = 100 + Q2 Price = $10
Q: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: Average variable cost(AVC) tells us how much a business company spends on its variable inputs( such…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…
A: In a perfect competitive market all firms are price taker and keep their price level equal to the…
Q: You are asked to employ the studied model of Perfect Competition to analyse the fishers in the…
A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…
Q: consider the market for corn in August 2020, a period where grain prices were quite low and the…
A: One consider the market for corn in august 2020 and find the short run equilibrium in the…
Q: Suppose that the firm operates in a perfectly competitive market. The market price of his product…
A: The perfectly competitive market would result in the large number of buyers and sellers in the…
Q: Determining Rent in a Market with Low-Cost and High-Cost Firms Suppose firms in a competitive market…
A: The competitive market is the one where there are infinite buyers and sellers who produces…
Q: In the long run, it is not possible for a perfectly competitive firm to... a. Alter its plant size.…
A: Prices are the value of goods and see sold in the market.
Q: A firm has a short-run total cost function given as STC =q³5q² + 25q. a. If P = 100, identify the…
A: Answer; a) Profit maximising quantity , q = 15 Profit = 1125 b) Profit…
Q: Unit10 - Microeconomics Multiple choice A firm in perfect competition is a price taker because…
A: Hello, thank you for the question. Since there are multiple questions posted here, only the first…
Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…
A: In a perfectly competitive market, price is constant so it is equal to marginal revenue. Firms are…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q°. If the firm sells output in a…
A: In a perfectly competitive market at a price of $10, the firm should produce to maximize profits or…
Q: marginal cost is
A: The Total revenue depicts the revenue generated by selling all the output. The Total cost depicts…
Q: what is dC and dQ here??? and why dC/dQ = 2Q?? please assist
A: Perfect competition is the market where there are large number of buyer sand sellers in the market.…
Q: Refer to Figure 12-11. Suppose the prevailing price is $20 and the firm is currently producing 1,350…
A: Answer: Given that: Suppose the prevailing price is $20 and the firm is currently…
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: The average total cost is calculated by total cost divided by the total quantity produced. ATC = TC…
Q: At zero economic profits, a competitive firm: is making a normal profit; its revenues are…
A: At zero economic profit, a competitive firm is making a normal profit; its revenues are just…
Q: Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A profit-maximizing firm in a competitive market produces small rubber balls. When the market price…
A: The average cost is the ratio of the total cost to quantity. The average cost rises with the fall in…
Q: If firms "satisfice" this means that a. objectives such as profit are not maximized. b. managers…
A: In a market, a firm's cost and pricing decision provide information about its behavior and market…
Q: A competitive firm uses two variable factors to produce its output, with a production function y =…
A: Y = min(x1,x2) P(x1) = w1 = $8 P(x2) = w2 = $5 Q ≤ 10 , FC = $80 Cost function = 13q + 80 Minimum…
Q: Multiplying one firm’s short-run supply function to the number of firms in a specified industry will…
A: Supply function shows positive relationship between price and quantity supplied.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. To maximize its profit, the firm should a. increase its output b. continue to produce 1,000 units c. decrease its output but continue to d. shut downYou are the manager of a firm that produces its output in a competitive market at Q = 500 – 25P. Your firm's cost function is C = 5Q + Q2/50. The profit-maximizing output for your firm is: 75. 50. 100. 125. 150.A firm is a perfectly competitive producer and sells two goods G1 and G2 at $1600 and $1200,respectively. The total cost of producing these goods is given by"image attached"where ?1 and ?2 are denoted the output levels of G1 and G2, respectively. Find the maximum profitand values of ?1 and ?2 at which this is achieved.
- A bicycle manufacture faces a horizontal demand curve . the firm's total cost are given by the equation . TVC = 150Q - 20Q2 + Q3 where Q is the quantity. Below what price should the firm shut down operations?has established that the relationship between the price for one of its products is approximately. In addition there is a fixed cost of $45,000 per year and the variable cost to manufacture the product is $45 per unit. What level of demand maximizes the total revenue? Ans. is Blank 1. What level of demand maximizes the total profit for this product? Ans. is Blank 2. Blank 1_____________ Blank 2_____________A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make more tables. Should she expand?
- Refer to the above data If the market price for the firm's product is 32 the competitive firm will produce A)8 units at an economic profit of $16. b) 5 units at a loss of $10 C) 8 units at a loss equal to the firm's total fixed cost. d) 7 units at an economic profit of $41.50A firm in perfect competition is producing 42 units of a product. They only produce this one type of product and earn a total revenue of $525. The demand line for that product crosses the y-axis at $12.50. True or false?A competitive company will maximize profits or minimize losses in the short term by generating production in which MR = P = MC, given that the price exceeds the minimum variable average cost. True or false
- 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.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.A competitive firm's cost of producing q units of output is TC=18+4q+q^2 Its corresponding marginal cost is MC=4+2q The firm faces a market price p = $24. Create a spreadsheet with q = 0, 1, 2, …, 15, where the columns are q, TR, TC, TVC, AVC, MC, and profit. Determine the profit-maximizing output for the firm and the corresponding profit. Should the firm produce this level of output or should it shut down? Explain briefly. Suppose the competitive price declines to p = $12. Repeat the calculations of part a. Should the firm shut down?
