Total Cost: TC = 40 + q2 Marginal Cost: MC = 2q If the price of the good is $100, what is the firm's profit in the short-run equilibrium? 3000.25 -500 2812.5 O 2460
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If the price of the good is $100, what is the firm's profit in the short-run equilibrium?
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- The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answerA perfect competitive firm estimates her cost function as given below: C = 100 + 5Q2a. What is the firm’s fixed and marginal cost?b. If all other firms in the market sell the product at a price ¢20. How much should thisfirm charge for the product?c. What is the optimal level of output to maximize profits?d. How much profit will be earned?e. In the long run should this firm continue to produce or shut down? WhySuppose that demand for a particular style of handmade Rwandan baskets is Qd = 1700 – 10P. Each basket maker has the following cost function: TCi = 1000 + 50 qi + .1 qi^2. Given this information, find the market outcomes under the various market structures below Perfect competition, long-run. Given the same cost functions above, find the long-run equilibrium quantity per firm, the LR market price, market quantity and equilibrium number of firms. What is the profit or loss per firm? What is MCi and ATCi?
- What are total fixed costs for the Zonker Company? $0 $8 $12 $20 2. The marginal cost to the Zonker Company of producing the third unit of output is $__________ and the marginal cost of producing the sixth unit of output is $__________. $10; $25 $36; $93 $24; $81 $25; $40 3. If the market price is $15 per unit and Zonker can sell all it wants at that price, then Zonker maximizes profit in the short run by producing __________ units per week. 5 3 4 0 4. If the market price fell to $11 per unit, Zonker maximizes profit in the short run by producing __________ units per week. a. 1 b. 2 c. 3 d. 0 5. The lowest short run average total cost for Zonkers occurs when they produce ________ units per week. 2 3 4 5 6. if the price-taking firm in Exhibit 0126 is currently producing 6 units, then to maximize profits in the short run, it should keep producing 6 units increase production to 13 units increase production to 14 units increase production…Suppose that the industry is a constant cost industry and entry and exit of firms are allowed. Assume the firm’s long-run cost function is given by LC = 1/300q3 - 0.2q2 + 4qa. Identify the most efficient plant size for the firm in the long-run by calculating the equilibrium output level. Brief discuss the process used to get your answer. b. Calculate the long-run equilibrium market price in this industry. Brief discuss the process used to get your answer.c. If the market demand for these firm’s product is Q = 8,000 – 200p½, determine the number of firms in the market under a long-run equilibrium. Brief discuss the process used to get your answer.1- Suppose that the total cost function of a firm is given as follows;TC = 500 + 2Q2And the price of the firm’s product is determined by the market equilibrium at $100.a- Set the profit maximizing condition . Find the profit maximizing output level for this firm .b- What is the total revenue ?c- What is the total cost ?d- What is the profit earned by the firm ?e- Illustrate your answer by using a well-labeled graph .f- Denote the break even price level with Pb on the same graph .g- Denote the shut down price level with Ps on the same graph.h- Show the firm’s supply curve on the same graph .i- Does the firm function in short-run or long-run ? Why ?
- The Hamilton Company is a member of a perfectly competitive industry. Like all members of the industry, its total cost function is TC=25000+150Q+3Q2 where TC is the firm’s monthly total cost (in dollars) and Q is the firm’s monthly output. If the industry is in long-run equilibrium, what is the price of the Hamilton Company’s product? What is the firm’s monthly output?The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2a) What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answerb) At profit maximizing level what is firm total cost, total revenue and marginal costc) Why does a competitive firm is considered as a price taker and Monopoly firm as a price maker.15. Assume that an entrepreneur's short-run total cost function is C = q³ - 10q² + 17q + 66. Determine the output level at which he maximizes profit if p = 5. Compute the output elasticity of cost at this output.
- The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 At profit maximizing level what is firm total cost, total revenue and marginal costBitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function? Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output. Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Compute Bitcom’s short-run supply curve for its product. Provide a 100 word summary of how this can be applied to the current economy. Show Calculations and can it be done in Excel?A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm estimates its total costs as C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run? units 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? multiple choice Exit will occur since these economic profits are too low. No firms will enter or exit at these profits. Entry will occur until economic profits shrink to zero.