A market is at long-run equilibrium of P* = $194 and Q* = 76800 units. All firms in the market are identical, and each has a marginal cost curve of P = 2 + 2g, where q is the quantity produced by that firm only. How many firms exist in the market? Answer:
Q: Please answer all three questions below (part a,b & c), thank you. Consider a firm with 1 input and…
A: Production function : f(x) = x1a Input price = c Output price = p A producer demands that level of…
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: In a perfectly competitive market a firm produces where equals to . If MR is greater than MC, the…
A: In perfect competition, there are large number of firms selling identical goods
Q: If all the apple orchards in the United States are earning zero economic profits, the apple market…
A: Profit is defined as the difference between the total revenue and total costs. Total revenue is the…
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: In a perfectly competitive industry, each firm has the following long run (total) cost function: C =…
A: Output is the amount, either utilized or employed for more manufacturing, of products or services…
Q: In perfectly competitive markets, _____________________ and marginal revenue are identical.
A: A perfectly competitive market is a market in which there are many firms and many buyers. The…
Q: The total cost function of a firm in a perfectly competitive market is given by: TC =3Q2+ 2Q + 10.…
A: Here, the total cost function of a firm, which operates in the perfectly competitive market, is…
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: TC=712+q2Now,AC=TCqAC=712q+q
Q: Consider the competitive market for titanium. Assume that, regardless of how many firms are in the…
A: Above the shutdown point, the supply curve is identical to the MC.
Q: Which of the following is not true for a competitive market? Group of answer choices Firms can earn…
A: Answer to the question is as follows:
Q: Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) =…
A: The perfectly competitive market is the market in which the industry determines the quantity and…
Q: Suppose there are 10 firms in this market, each of which has the cost curves previously shown. On…
A: Upward sloping of Marginal cost curve is the supply. Firm will supply above average variable cost…
Q: The profit-maximizing (or loss-minimizing) perfectly competitive firm will want to produce the…
A: Under perfect competition, the profit maximizing (or loss minimizing) condition for the firm is to…
Q: Consider a competitive firm with a short-run cost function C(q)=100q-q^2+(1/5)q^3+450 (a) Suppose…
A: We will use short run profit maximisation condition for perfectly competitive market to solve this…
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: Suppose that as the output of mobile phones increases, the cost of touch screens and other component…
A: Increasing level of production decline the average production cost that cause decrease in the price…
Q: A perfectly competitive firm would produce______________________________________if it wanted to…
A: Perfect competition: It is the market that has the greatest level of competition.
Q: perfect competition
A: There are different forms of market such as Perfect and Imperfect form. These includes different…
Q: Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost…
A: TC = 4,500 + 2q + .0005q2 We know that ATC = TC / q ATC = (4,500 + 2q + .0005q2) / q TC = 4,500 +…
Q: In a perfectly competitive market, each firm produces its last unit at the same marginal cost. a…
A: As per the question the perfectly competitive market usually refers to that market where all the…
Q: Suppose the market for cat food is perfectly competitive, with each firm having the total cost…
A: At the point when market price = MC, a profit-maximizing fully competitive company produces. In…
Q: A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long-…
A: Perfect Competition Some Preliminaries: Long-run equilibrium is characterized by zero economic…
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: Firms facing loss in short run may continue to produce in a competitive market structure.
A: Perfect competition is a market structure that has a large number of buyers and sellers who have…
Q: Address the following matters: Describe the behavior of a rational consumer in a perfectly…
A: If we describe the behaviour of a rational consumer in a perfectly competitive market, this will be…
Q: The demand for bicycles is given by the equation: Q = 1000 – 5P There are currently 100 identical…
A: Given information Market Demand function Q=1000-5P Firms Cost function C=25/2*q2+20q+50 There are…
Q: If existing competitive firms are incurring economic losses, which of the following will happen as…
A: Economic loss: It is the financial loss in which property damage is excluded.
Q: Suppose a firm in a perfectly competitive market faces the following total cost function TC = 100 +…
A: C. In the long-run, market will be in equilibrium when a firm will produce a quantity at which…
Q: Which of the following is characteristic of a perfectly competitive market? a. There is free entry…
A: A market is determined as perfectly competitive, Monopoly, or any other form according to its…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in…
A: A short-run competitive equilibrium occurs when, given the businesses in the market, the price is…
Q: For a perfectly competitive firm to operate and produce an output level in the short-run, the firm's…
A: A perfectly competitive market is a price taker as there are many firms in the market and no firm…
Q: If the market for donuts is perfectly competitive and all firms are producing a quantity that…
A: A market structure refers to the degree and nature of competition present in the market for goods…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 22 firms in…
A: Total firms in the market=22 Each firm's total cost function is TC=473+2q+q2 and marginal cost…
Q: Consider a competitive market where there are two types of firms, Type A and Type B, with total cost…
A:
Q: The price faced by the firm in a perfectly competitive market is $70 per unit. The average total…
A: Formulas of cost are: 1. Total Cost = Total Fixed Cost + Total Variable Cost 2. Average Total Cost =…
Q: Each firm in a competitive market has a cost function of: C= 25 + q°, so its marginal cost function…
A: In the long run, firms in perfect competition charge price equal to minimum average total cost.
Q: Question 1 Which of the following is not a characteristic of a perfectly competitive market? Group…
A: A market system with a large number of firms and commodity buyers is known as perfect competition.…
Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…
A: The perfect competition is a market that deals with a large number of buyers and sellers selling the…
Q: All markets that are not perfectly competitive have which of the following characteristics? Each…
A: In non perfectly competitive market, there are barriers to entry so new firms can not enter the…
Q: An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs…
A: Answer: Introduction: In the short run, the equilibrium is where the difference between the total…
Q: There are 300 identical firms in a perfectly competitive market, the price of the output is p, the…
A: C = q3 - 2q2 + 2q + 10 Number of firms = 300
Q: In the model of perfectly competitive markets, the market outcome is allocatively efficient because…
A: Perfectly competitive markets are said to be allocatively efficient. They produce quantities by…
Q: 37. Which of the following is more accurate regarding the demand function faced by a representative…
A: 36. Independent of the market structure, the necessary condition for a profit maximisationstates:a)…
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: 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 following problem traces the relationship between firm decisions, market supply, and market…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: A market is at the perfectly competitive long run equilibrium, with market price equal to 2. All…
A: In a competitive industry, the long-run period facilitates entry and entry of firms thanks to no…
Step by step
Solved in 2 steps
- A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=450-6P. Market Supply is given by Q=4P-13. Suppose 21 units are bought to the market. Consider the Marginal Cost of production for these 21 units. What is the maximum Marginal Cost of production of these 21 units? Enter a number only, do not include the $ sign. Hint: 21 doesn't have to be the market quantity.Suppose that the market for air fresheners is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (? 40 36 Profit or Loss 32 28 24 АТС 16 12 AVC MC 4 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Air fresheners) PRICE AND COST (Dollars per air freshener) 20
- Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 100 90 80 ATC 70 60 50 40 30 AVC 20 10 MC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of ovens) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per oven) (Ovens) (Dollars) (Dollars) (Dollars) (Dollars) 25.00 1,600,000 70.00 1,600,000 $25.00 100.00 1,600,000 $35.00 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's…1. Emad is a lettuce supplier in a perfectly competitive lettuce market in Kuwait. If the demand for lettuce in Kuwait is given by: Qo = 40,000 – 10,000P, Where Q is the quantity of lettuce boxes and P is the price of a lettuce box. In the short-run, Emad's has the following total cost function for his production of lettuce: TCimad = 0.25Q +Q +3 Assume that Emad is one of 1000 sellers in the Kuwaiti lettuce market with identical costs. Answer the following questions: e. wnat is tne market suppiy tunction in the short-run? 1. What is the short-run equilibrium price and equilibrium quantity in this market? g. Draw a rough sketch of the market demand and supply functions, showing the optimal point and all intersections with the horizontal and vertical axes. h. What is the demand function for Emad's lettuce in the short-run?Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per wind chime) 40 36 32 28 24 20 16 12 8 4 0 0 MC 2 ATC 4 AVC 6 10 12 14 16 QUANTITY (Thousands of wind chimes) 8 18 20 Profit or Loss (?)
- For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per air freshener) (Air fresheners) (Dollars) (Dollars) (Dollars) (Dollars) 10.00 44,000 16.00 44,000 40.00 44,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the…Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. (?) 100 90 80 70 60 50 40 ATC 30 20 MCO AVC 10 + 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of tons) The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. 100 90 Supply (20 firms) 80 70 E 60 Supply (30…Hi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly Elastic
- In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm Fixed Cost? Why? Also, use a graph to support your answerSuppose that the market for dress shirts is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 50 18, 42 45 40 35 30 ATC 25 20 15 AVC 10 MC 2 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands of shirts) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per shirt) (Shirts) (Dollars) (Dollars) (Dollars) (Dollars) 12.50 7,500 135,000 27.50 135,000 45.00 135,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is…The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=358+q^2 and Marginal Cost curve MC=2q. Market demand is Q=600-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? Hint: first find the number of firms by solving for the original LR equilibrium.
