Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC=0.1q: (i) Yann's profit-maximizing level of output is 3 (ii) Yann's variable profit is (iii) The producer surplus is If Yann also has a fixed cost of $50, then: (iv) his total profit is Assuming Yann cannot avoid the fixed cost, Yann should
Q: Suppose the market for coffee is characterized by perfect competition. Assume that all firms are…
A: Answer: Given, LATC (long-run average total cost) function: LATC=Q+5+25Q LMC (long-run marginal…
Q: If a perfectly competitive firm decreases production from 11 units to 10 units and the market price…
A: Revenue refers to the amount of money earned by the firms by selling the goods and services in the…
Q: There are 10 identical firms in a perfectly competitive market. Each firm has a total cost function…
A: We have been given TC = 50 + q2 Qd = 200 - 5P
Q: Each of 6 identical firms in a competitive market has a cost function: C= 30 + 2q? and the market…
A: There are 6 identical firms in the perfectly competitive market. Each firm has following cost…
Q: Suppose an avocado farm has cost: C = 0.002q3 + 22q + 750 (where q is measured in bushels).…
A: Given an avocado farm: C = 0.002q3 + 22q + 750 .... (1) Marginal cost: MC=0.006q2+22 ... (1)…
Q: A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q,…
A: In perfect competition there are large number of firms selling identical goods.
Q: Market demand is P = 50 -2Q. Firm has cost function TC(Q) = 5 + 2Q + Q^2. Can firm function as a…
A: A perfectly competitive market structure is one where there are large number of buyers and sellers.…
Q: onsider a competitive firm that has the cost function, TC(Q) and faces the demand P = P(Q), that is,…
A: Since, you have asked a question with multiple parts, we will be answering the first three parts for…
Q: A firm operates in a perfectly competitive market. The market price of its product is 4 birr and the…
A: Perfect competition is the form of market with a large number of buyers and sellers, selling…
Q: Each firm in a competitive market has a cost function of: C=25 + q°, so its marginal cost function…
A: The equilibrium for a competitive firm is given at a point : P = MC MC = 2q for q units For Q…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: In a perfectly competitive market, the profit-maximizing quantity is at that at which price is equal…
Q: Each of the 8 firms in a competitive market has a cost function of C=5+q?. The market demand…
A: There are large number of firms in the perfectly competitive market. Single firm can not influence…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: A firm's demand function is Q = 16 – P and its total cost function is defined as TC = 3 + Q +…
A: Profit depends on total revenue and total cost of a firm. Profit is a difference between total…
Q: Each of the 8 firms in a competitive market has a cost function of C= 5+q°. The market demand…
A: A Perfectly competitive firm has a constant price at all levels of output. Profit is maximized at…
Q: Now lets discuss the short run on the same market. Assume there are 30 identical firms in a…
A: At equilibrium ; MR = MC
Q: The following are the total cost (TC), marginal cost (MC) and total revenue (TR) functions for a…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 11 + 5q².…
A: We first derive the individual supply curve, Cost firm bears, C(q)=11+5q2 Firm will sell at the…
Q: Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his…
A: "A perfectly competitive market structure is the one which consists of many buyers and sellers and…
Q: A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total…
A: Given:P=90-Q4TC=1/4Q2-6Q+40 Now,TR=P×QTR=90-Q4×QTR=90Q-Q24
Q: The inverse demand for tea is given by P = 12 – 0.03Q, where Pis the price per a gram of tea and Qis…
A:
Q: The wood-pallet market contains many identical firms, each with the short-run total cost function…
A: The perfectly competitive market structure is characterized by the large number of firms and buyers.…
Q: Suppose that the current price per unit of the good is 10 pounds. A perfectly competitive firm faces…
A: Introduction A perfectly competitive firm is where there are large number of firms available in the…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: Perfectly competitive firm: It is a market structure where there exists a large number of buyers and…
Q: is currently earning zero economic profit. How many firms are in this industry, and what is the…
A: Given : Short run cost function : Marginal Cost function : Demand function of industry : Average…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: The Profit maximizing condition in Perfect competition is where Marginal cost = Price = Marginal…
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: Suppose the market consist of 300 identical firms, and the market demand is given by Q = 60 – P.…
A: here we calculate the price and Quantity for the following terms , as we know that at equilibrium…
Q: pose a farmer is a price taker for soybean sales with cost functions given by the following:…
A: The farmer operates in a perfectly competitive market since he is a price taker implying that the…
Q: Each firm in a competitive market has a cost function of: C = 49 + g?. so its marginal cost function…
A: Answers In the long run AC = MC = P. Hence we have P = 49/q + q = 2q which gives q = 7 units and…
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: A firm has short-run costs such that the lowest average variable cost it has for any quantity…
A: For a competitive firm. Total revenue is TR(q)=Pq a. Marginal revenue is MR(q)=dTR(q)dq=P
Q: There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand,…
A: A perfectly competitive market is one in which all businesses sell the same product and where…
Q: A perfectly competitive firm has the following total cost function TC=10+20². The price is given at…
A: TC = 10+2Q2 Differentiate TC w.r.t Q to get MC => MC = dTC / dQ => MC = 4Q…
Q: A firm has a total cost function C(Q) = 100 + 8Q - 8Q 2 + Q 3 and demand function is Qx d = 33 – 2px…
A: Given data: Cost function, CQ=100+8Q-8Q2+Q3 Demand function. Qxd=33-2px
Q: Each of the 8 firms in a competitive market has a cost function of C=5+q?. The market demand…
A: Answer A firm inverse supply is the marginal cost curve. MC=change in the total cost P=2q…
Q: Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin…
A: Perfect competition is a market arrangement in which all businesses or enterprises offer the same…
Q: Window cleaning is a perfectly competitive market in Boston. The daily market demand for window…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Consider a perfectly competitive market in which each firm's short-run total cost function is C= 25+…
A: Answer -
Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 65+4q2.…
A: A "demand function" describes the relationship between the price of a good or service and the…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: A firm in a perfectly competitive market has the following total cost function: TC(q) = 100q -4q² +…
A: A firm operates in a perfectly competitive market and has the following total cost function. TC =…
Q: In a perfectly competitive market, consider a firm with a cost function C=20+2q Al the output q=2,…
A:
Q: Suppose that many small firms operating in the perfectly competitive market set-up. All firms are…
A: c (q)= 40+8q+(q^2/10) P= A - (Q/50) 78 firms in the market, firm’s maximum profit is $22.5
Q: The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis…
A: In Cournot duopoly two firms compete in quantity and maximize profit by producing at MR =MC
Q: A firm that behaves in a perfectly competitive fashion has the following cost function: C(Q)=Q² +20…
A: In perfectly competitive market, price is constant at all levels of output. Profit is maximized at a…
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 4 images
- Yann's bakery operates in a perfectily competitive market where the prevailing price for a baguette (his only product) is $3. If Yann's marginal cost function is given by MC 0. 19 () Yann's profit-maximizing level of output is 0 (1) Yann's variable profit is 0 (H) The producer surplus is 0 If Yann also has a fixed cost of $50, then: (Iv) his total profit is Assuming Yann cannot avoid the fixed cost, Yann should 0Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q: (i) The profit-maximizing level of output is _____ (ii) The variable profit is _____ (iii) The producer surplus is _____ If Kenan also has a fixed cost of $50, then: (iv) The total profit is _____ If Kenan cannot avoid the fixed cost, Kenan should _____ Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, otherConsider the following graph of the average and marginal cost functions for a firm in a perfectly competitive market. At a price of P=10: (iii) the marginal cost of production is . (iv) the firm's total profit is . (v) the firm's variable profit is .
- Your firm "We Work Eot U" rents access to shared open office spaces for a price of S540 per year. The market is perfectly competitive as consumers have many of these "We Work" rental companies to choose from. Your firm's total revenue function is written: TR = (540) Q. The total cost function is written: TC = 80,000+ 40Q + 0.5Q? a. To maximize profits, what is the optimal number of office spaces to rent? Show your work. b. How much (in dollars) are total profits at the profit-maximizing output level? Show your work. c. In the long run, assuming no barriers to entry and exit into this industry, what will happen to profits and to the market price?The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.01q,?, where qı is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.01q2², where qp is the number of grams of tea it brings to market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number - Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £ NumberThe inverse demand for tea is given by P = 8 – 0.03Q, where Pis the price per a gram of tea and Q is the total number of grams of tea brought to market. There are two tea shops in the market. Shop 1's cost function is given by C = 0.02q,?, where q, is the number of grams of tea it brings to market. Shop 2's cost function is given by C2 = 0.02q22, where q2 is the number of grams of tea it brings to %3D %3D market. Given that the two shops compete by setting output (Cournot), answer the following. a) Identify shop 1's reaction function to shop 2's output to within 2 decimal places (e.g. 0.33). 91= Number Number 92 b) Identify shop 2's reaction function to shop 1's output to within 2 decimal places (e.g. 0.71). q2= Number Number 91 c) To within two decimal places (e.g. 0.63) what is the equilibrium output level of each shop and the equilibrium per gram price for tea. Shop 1 will produce Number grams of tea and shop 2 will produce Number grams of tea. The equilibrium market price is £…
- Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)A firm's demand function is Q = 16 -P and its total cost function is defined as TC = 3 + Q+ 0.25Q² Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum?The demand and total profit function, P(x) for rooms in a hotel are given as follows. 3x = 600 - P P(x) = 450x – 3.5x2 - 4000 Where p is the price in ringgit per room and x is the quantity of room rented. Determine the marginal cost when 2 rooms are rented
- Q#2. The water bottle manufacturing company in Muscat facing the following demand function P=1000-10Q. The cost accountant at the company by evaluating the costs has given the average cost function as ATC=200+15Q. The manager of the company with presented information above requested you to work on it and help the company to determine the level of output that brings maximum profit. Secondly, the manager also wants to know the total level of profit at the maximum output.A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 3rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized. 20 MacBook esc 20 F3 OOD F1 F2 F4 2$ W R tab 6 5 %A4 %# 3Joshua owns a small boat and catches lobster off the coast of Maine. His weekly cost function is TC(q) = 40 + 5q + 5q?. He sells his lobsters to the local wholesaler at the market price p (in dollars). a) Find Joshua's short-run supply function for lobsters. (Hit: In this case short-run marginal cost is the same as long-run marginal cost.) b) Find Joshua's long-run supply function for lobsters. c) Find Joshua's shutdown price and Joshua's breakeven price (the price at which profit equals zero). d) Suppose the market price is $30, calculate his profit. What will Joshua do in the long run? Explain. 1