Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C 100+2q where q is the level of output and C is total cost. (The marginal cost of production, MC(g), is 4q; the fixed cost, FC, is $100). If the price of a watch is $80, how many watches should you produce to maximize profits? You should produce 20 watches. (Enter your response as an integer.) What will the profit level be? Profit will be $ 700 (Enter your response rounded to two decimal places.) At what minimum price will the firm produce a positive output? In the short run, the firm will produce if price is greater than $per watch. (Enter your response as an integer.)

Q: Profitable zones Recall from chapters 3 and 4 that the profit P (æ) realized by selling x units of a…

A: We need to use profit maximization method to answer the question

Q: Are the following statements true or false? Select the best answer. Statement 1: Allocative…

A: Productivity and allocative efficiency is achieved in Perfect competition market structure.…

Q: # the competitive firm of Example 1 has the cost function C = 2Q% + 2Qž instead, then: (a) Will the…

A: R1 = P10 Q1 + P20 Q2 Firm’s cost function, C = 2Q12 + 2Q22

Q: Imagine a firm in a competitive market comes up with a new production method, which halves its…

A: Perfect competition market is the market where large numbers of sellers and buyers are exchanging…

Q: Becky's profit is maximized when she produces shirts. When she does this, the marginal cost of the…

A: In Microeconomics, perfect competition refers to the market where all firms sell homogenous…

Q: Suppose the firm achieves total revenue of $1,000 by selling 150 units while facing total costs of…

A: The marginal revenue must be compared to the marginal cost of production to know if the firm must…

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: The marginal cost of producing the third unit of output is

A: Answer to the question is as follows :

Q: explain why a firm might want to produce its good even after diminishing marginal returns have set…

A: The firm may wish to continue operating and manufacturing products even after decreasing marginal…

Q: Billionaire real estate mogul Glenn Rhee owns two large parcels of land in Alexandria, VA: Greenacre…

A: Greenacre was purchased by Walker Treatment Inc., which is a hazardous materials treatment center.…

Q: You own a printing firm. Two of your senior managers provided you with advice. The first manager…

A: The profit of a firm is calculated by subtracting the total costs incurred on production from the…

Q: The data below shows tabulation on the production of a hypothetical product. Output (Q) Total cost…

A: Total fixed cost (TFC): TFC is the cost that a firm must occur even when the quantity of output is…

Q: Simone's profit is maximized when she produces |teddy bears. When she does this, the marginal cost…

A: Perfect competition is the one where there are infinite number of buyers and sellers, and earn zero…

Q: [F] The profit function of a business firm is T = f(q) = -q³ + 6q² – 11q – 50. ,3 | (i) What output…

A: We have given the profit function i.e., π = -(1/3)q3 + 6q2 - 11q - 50 In order to find the value of…

Q: Suppose you are an economist working in a watch factory operating in a competitive market. The cost…

A: Answer: Given, Total cost function: CT = 200 + Q2 Marginal cost function: MC= 2Q Fixed cost: FC =…

Q: Question 2 You are the manager of medium-sized company that produces a particular kind of alcoholic…

A: A deliver and call for graph has two curves, one representing deliver and the other representing…

Q: Refer to the figure below. If the firm is producing the level of output that maximizes profit, its…

A: Answer:  To find= total variable cost at the equilibrium. Equilibrium is a point where Marginal cost…

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: Q)All of the following statements are true except   A. consumers allocate their budgets to get…

A: The consumer equilibrium is the condition where the consumer preference of goods and services meet…

Q: Consider a firm with the production function ƒ(x1, x2) = x₁/²x2. The price of the two inputs is w₁ =…

A: Given information Production function q=X10.5X2 W1=2--- price of factor X1 W2=1---- price of factor…

Q: Question A   Suppose the short-run production function is q = 1L0.5. If the marginal cost of…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: Lorenzo's profit is maximized when he produces teddy bears. When he does this, the marginal cost of…

A: please find the answer below.

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: A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu…

A: Costs are the expenses that a business or a firm incurs in its production activities. It is an…

Q: Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its…

A: Sunk cost refers to the cost which once incurred can not be recovered. The opportunity cost is…

Q: Diane owns a store that sells computers. Her profit, in dollars, is represented by the function P(x)…

A: Answer a) Given  P(x) = x3 - 22x2 - 240x

Q: $/Q $30 MC ATC 24 22 20 AVC D 10 MR 50 100| 150 200 117

A: In a market, economists and policymakers of an organization generally use a graphical depiction of…

Q: Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of…

A:

Q: The data in the following table give information about the price P (in dollars) for which a firm can…

A: As we know , that profit is the difference between total income and total cost . Whereas Marginal…

Q: News reports from the western United States occasionally report incidents of cattle ranchers…

A: A profit-maximization can be understood as a process of determining the level of output, and price…

Q: A firm knows that its price (P) and its output (Q) are related by the expression P = 80 – 2Q Find…

A: Price (P) and output (Q) are related by the expression P = 80 - 2Q  Hence, Total Revenue TR = P x Q…

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 the total cost of producing widgets can be described by Y=10X²+50X+100 where Y is the total…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…

A: The structure of a market where there are a large number of buyers and sellers selling homogenous…

Q: our cost of production is given by

A: Price of a watch is ​$100 The marginal cost of​ production, MC(q)​, is 4​q Since this is a…

Q: Suppose the total cost of producing widgets can be described by Y=10X²+50X+100 where Y is the total…

A: Given the total cost of production is Y and the number of widgets is X,  Y= 10X2+5X+100

Q: You are the manager of a firm and you are required to optimize the Cobb-Douglas function given the…

A: (Q) You are the manager of a firm and you are required to optimize the Cobb-Douglas function given…

Q: A firm is producing computer monitors. The market price per monitor is P1=$450. The cost function is…

A: we have new price =$130 cost function =C(Q)=1,500+2.8Q2 so, marginal cost (MC) = 2.8x2xQ=5.6Q so,…

Q: When buyers in a competitive market take the selling price as given, they are said to be

A: A competitive market is a market where there are numerous producers who compete with each other to…

Q: Jakarta City cab operator appears to be making positive profits in the long run after carefully…

A: The Competitive Forces Model is a significant instrument utilized in essential investigation. The…

Q: Suppose that the profit from the sale of Kisses and Kreams is given by the following, where x is the…

A: Profit function is given as :- P(x,y) = 10x + 6.6y - 0.001x2 - 0.025y2

Q: Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and…

A: When the market is observed, the equilibrium in the competitive market is obtained at the…

Q: The following statements are true in a perfect market except which one? A. Resources are allocated…

A: Perfect competition(PC) is defined as a situation where the market has ample amount of buyers and…

Q: Part A- You are a manager of an advertising company. The company is running short of funds, so you…

A: The process of combining multiple material and immaterial inputs (plans, know-how) to generate a…

Q: acques's profit is maximized when he produces , which is teddy bears. When he does this, the…

A: Profit maximization is a procedure that businesses go through to ensure that they get the best…