Suppose TC= 10+0.1q², MC = 0.2q. If p = 10, the firm's profit on the perfectl competitive market in the short run will be (a) 240 (b) 250 (c) 260 (d) -10 because the firm will shut down. (e) None of the above
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- Natural-ExP is a unique company that is dedicated to making day trips to the Nevado de Toluca. The service includes transportation, food and guide service. Being the number of tickets sold, if the cost function of serving a new customer is Cmg = 20q, the marginal revenue function Img = 600−40q and the demand is q = (600 − p) /20. Under this scenario, what is the price of the excursion. $400 $600 $300 $100Question 1 . In 2004, the country of Lesotho in southern Africa made most of its export earnings, 90% in 2004, from garment and textile factories. Many of these clothing items, particularly t-shirts, were sold in the U.S. Sub Question a. Assume that the market for cotton textiles is perfectly competitive. Assume, also, that the market price for a t-shirt is $3 and the marginal cost function for a typical Lesotho textile factory is MC = .5 + .1Q (Q is in 1000’s of t-shirts). Solve for Q, the output of a typical Lesotho factory. Using a graph, illustrate the long run equilibrium for this Lesotho garment factory in 2004 (hint: you will need to graph the above two functions plus a hypothetical (but plausible) ATC function). Sub Question b. At the beginning of 2005, the U.S. ended textile quotas from China. This made it much easier for the U.S. to import inexpensive textiles, such as t-shirts, from China. Using S&D analysis, illustrate how the end of textile quotas on China would impact…The cost function of competitive firm is TC = 20 + 5Q2. The product's market price is 30 AZN. Please find the firm's profit.
- Follow up question (note that the dollar amounts have not changed from the previous scenario.) You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price. Your marginal cost per customer across both tours is $4800. Customer Preferences Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 You know that 33% of your customers will never bundle, 21% of your customers decline cruises because of seasickness and 12% decline the casino trip saying they don't believe in gambling. Given the preferences distribution, will the mixed bundling increase profits? To support your answer, you must show your calculation of the net gain in profit, if any, with a mixed bundle strategy.Follow up question (note that the dollar amounts have not changed from the previous scenario.) You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price. Your marginal cost per customer across both tours is $4800. Customer Preferences Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000 You know that 33% of your customers will never bundle, 21% of your customers decline cruises because of seasickness and 12% decline the casino trip saying they don't believe in gambling. Given the preferences distribution, will the mixed bundling increase profits? To support your answer, you must show your calculation of the net gain in profit, if any, with a mixed bundle strategy. STEP 1Customer…If a perfectly competitive firm increases production from 10 units to 11 units and the market price is $20 per unit, total revenue for 11 units is: Select one: a. $10. b. $20. c. $200. d. $220.
- Perum Perindo operates 2,500 hectares of shrimp pond in Bratasena, Lampung. There are many players in this market, including the traditional shrimp farmers and big companies listed in the IDX stock market. The product in this market is relatively standardized. It is known that perum Perindo total cost function is TC= 20 + 4Q + 0.003Q2 and the market price for a kilo of shrimp is $16. a. Identify the market structure that perum Perindo operates inb. Find Perindo marginal costc. Find the equilibrium output leveld. Write the firm variable cost and average variable cost functione. At the equilibrium level of output that has been calculated in question c , find the firm average variable cost (AVC)f. At current price level, should the firm continue to produce or shut down it operation? ExplainA firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively. Therefore, its profit maximizing level of output is:A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $2,000 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192? Multiple Choice A. 0 B. 6 C. 10
- 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’s profit equation is given by: Total Profit = -100 + 160Q – 20Q2 . Therefore, Select one: A. The firm’s fixed cost is 100. B. The firm should produce zero output C. Marginal Profit = 160 – 20Q. D. The firm’s profit-maximizing output is Q = 8.A firm in the airline industry has a marginal cost of $200 and charges a price of $300. What are the Lerner index and markup factor?