Suppose that each firm in a perfectly competitive market has a short- run total cost of TC = 75 + 500Q – 5Q 2 + 0.5Q 3 , where MC = 500 – 10Q + 1.5Q 2 . a. Calculate the output that minimizes the firm’s AVC. b. What is the firm’s shutdown price?
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Suppose that each firm in a
run total cost of TC = 75 + 500Q – 5Q 2 + 0.5Q 3 , where MC = 500 –
10Q + 1.5Q 2 .
a. Calculate the output that minimizes the firm’s AVC.
b. What is the firm’s shutdown price?
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- Suppose that each firm in a perfectly competitive market has a short-run total cost of TC = 75 + 500Q – 5Q2 + 0.5Q3, where MC = 500 – 10Q + 1.5Q2.a. Calculate the output that minimizes the firm’s AVC.b. What is the firm’s shutdown price?A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q2. b.What price should the firm charge in the short run? c.What are the firm's short-run profits? d.What adjustments should be anticipated in the long run?What are the profits or losses when a competitive firm shuts down in the short run? Group of answer choices it will realize a loss equal to its total fixed costs. its loss will be zero. it will realize a loss equal to its explicit costs. it will realize a loss equal to its total variable costs.
- in a perfectly competitive market with a constant cost industry, there are currently 100 identical firms, each with the total cost function TC(Q) = Q^2 + 4Q + 36. The market demand is Q = 1800 – 50p. a. What is the price at the short-run equilibrium? What is the net profit/loss of each firm at this price? b. In the long run, how many firms will enter into /exit from the market?A firm operates in a perfectly competitive market. The firm’s total cost of production is given by the following equation: TC(q) = 100 + 48q2 + 5q, where q is the quantity supplied. What is the shutdown point for this firm in the short run, or in other words, what is the market price below which a firm is better off not supplying any units in the short run? [Advice: draw AVC and MC]Doggy Treats is selling dog treats in a purely competitive market. Its output is 800 treats, which it sells for $10 a treat. At the 800-treat level of output, the marginal cost is $11, the average total cost is $9.00, and the average variable cost is $8.00. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine that optimal level of output?
- In a perfectly competitive market with constant cost industry and with the market demand Q=1,800-10p, each of the identical firms operating in it has a total cost function TC(q) = 100 + 4q2 . How many firms are there in the market in long run equilibrium?Glowglobes are produced by identical firms in a perfectly competitivemarket. There are 17 firms in the market. Each firm's Total Cost functionis TC=335+2q+q^2 and Marginal Cost function is MC=2+2q. Marketdemand is Q=415-P. What is the profit earned by each firm in the short-run?In the above figure, the perfectly competitive firm's shutdown point is at a price of
- A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 50 + 10Q + 2Q2. [NOTE à MC(Q) = 10+4Q] a) How much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm’s short run profits?Glowglobes are produced by identical firms in a perfectly competitivemarket. There are 24 firms in the market. Each firm's Total Cost functionis TC=494+2q+q^2 and Marginal Cost function is MC=2+2q. Marketdemand is Q=368-P. What is the short-run market quantity?A competitive firm has the short-run cost function C(y) = 4y3 -2y2 + 10y + 2. a) At what price will the firm agree to produce in the short-run? b) What is the shutdown condition for this firm?
