A perfectly competitive firm has the following total cost function: 05 Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit?
Q: Q)Assume that a competitive firm has the total cost function: TC=1q^3−40q^2+740q+1600 Suppose the…
A: Answer: Given, Price = $650 per unit Total cost function: TC=1q^3−40q^2+740q+1600 Quantity Total…
Q: A perfectly competitive firm has the following total cost function: Total Output (Units) Total…
A: In a perfectly competitive firm there are large number of firms producing identical products thus…
Q: A perfectly competitive firm has the following total cost function: Total output Total Cost 0…
A: Profit is maximized when Price = MC, where MC = Change in TC / Change in Q When Q = 4, MC = (69 -…
Q: A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue…
A: In perfectly competitive markets firms do not have any market power so they take the price as given.…
Q: You are the manager and selling your product in a perfectly competitive firm market. Your firm and…
A: Here, it is given that a firm operates its business in the perfectly competitive market with market…
Q: Letters are used to represent the terms used to answer this question: price(P), quantity of…
A: Answer: Correct option: option (B) Explanation: A firm earns profit if the price is higher than the…
Q: Consider the following cost information for a firm that operates in a perfectly competitive market.…
A: Marginal cost is calculated by dividing, the change in total cost by the change in quantity. The…
Q: What is the value of the average cost? If the price in the market of the perfect competitive firm…
A: Profit maximizing quantity is where marginal revenue equals marginal cost.
Q: The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is:…
A: The cost function measures the minimum cost of manufacturing a given level of output for a few fixed…
Q: Suppose a factory's marginal cost has a minimum value of $2; its average variable cost has a minimum…
A: In the short run, there are fixed costs and variable cost and in the long run there exists only…
Q: The following table shows the cost of production for a perfectly competitive firm. If the market…
A: In perfect competition there are many firms producing identical goods
Q: You are the manager of a firm that sells its product in a competitive market at a price of $60. Your…
A: Profit is the income earned by the company after deducting all the expenses from the total revenue.…
Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 2 3 20 22 4…
A: Upto price of $45,firm would produce at a non negative profit.
Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…
A: A perfect competition market refers to a market structure that has many sellers who sell identical…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: Marginal cost is the additional cost incurred on the production of one extra unit of the output. In…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: Given: To Find: The marginal cost of producing the first 10 units of output
Q: Which one of the following statements below about cost functions of competitive firm is false? a)…
A: A perfectly competitive market is where there are large number of firms selling identical goods.…
Q: demand function is given by P = 25 - Q and Total cost function TC = Q. Calculate firms price and…
A: In a perfect competition, the equilibrium condition is where price is equal to marginal cost.
Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 20 3 22 24…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: You are the manager and selling your product in a perfectly competitive firm market. Your firm and…
A: Given C(Q) = 50 + 10Q + 2 Q2, MC = Change in Total Cost/ Change in Output = 50 + 10Q + 2 Q2 / Q…
Q: What is the value of the firm's average fixed cost (AFC)of producing 10 units of output? What is…
A: The average fixed cost refers to the output’s per unit fixed cost. The average variable cost refers…
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2Q…
A: The total revenue of a firm is the total payment it receives from the sale of goods and services.…
Q: A perfectly competitive firm has the following total cost function:…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: You are given the following cost data Output(q) Total variable cost 0 0 1. 20 2. 35 3. 60 4. 90 5.…
A: The firm is profit-maximizing and will only produce until the point where marginal cost is equal to…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: The above given is a case of a firm under perfect competition. The equilibrium condition is P= AR=…
Q: There is an oil change firm in town called Oil Pro. The total cost function for Oil Pro is below.…
A: In perfectly competitive market, firms produce identical goods so they do not have any control over…
Q: The total cost of producing 6 units of output is __________________ If the firm is producing at an…
A: Total Cost = Total Fixed Cost + Total Variable Cost Zero Economic Profit occurs when Total Revenue =…
Q: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and…
A: Question: A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are…
Q: Q4) A perfectly competitive firm has the following total cost function: 05 Total output Total Cost…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose you are given the following information about a particular industry: Market…
A: Given information-
Q: a) Derive the total cost function, then find the firm’s average variable cost, average fixed cost,…
A: Since you have asked multiple questions under each sub-part, we will answer only the foremost…
Q: A perfectly competitive firm has the following total cost function:…
A: Perfect competition refers to the market structure which features more number of sellers and buyers…
Q: An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost…
A: please find the answer below.
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: Given Quantity Total Cost 0 12 1 14 2 18 3 24 4 32 5 42 6 54 7 68 Market…
Q: Consider the following information: TC = 20 + 5Q + Q2 Q = 25 – P Where TC is total cost, Q is the…
A: Given Total cost TC =20+5Q+Q2 ............ (1) And demand function Q =25-P…
Q: Suppose you are operating a firm with a given fixed cost and product market price. If the market for…
A: Perfect competition is a form of market where there are large number of buyers and sellers selling…
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: Given the following short run production cost schedule: Short Run Total Cost Function…
A: The money spent to purchase the factor of production to produce the good is called cost of the…
Q: The perfectly competitive firm has the following cost function: Total output Total cost 0 20 1 30 2…
A: Perfect competition is the ideal market structure in which all producers and consumers have complete…
Q: There are 300 identical firms in a perfectly competitive market, the price of the output iS p, the…
A: TC(total cost) has 2 parts- TVC(variable cost) and TFC(fixed cost). Variable cost varies with the…
Q: The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is:…
A: Introduction: In economics, the marginal cost of production is the difference in total production…
Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…
A: Given Information Market demand : QD = 600−PFirm cost: TC = q3 − 20q2 + 120q
Q: A company's short run total cost function is given by TC(q) = 3.0q^(3) - 1.0q^(2) + 3.6q + 3.…
A: In the short run there exists fixed cost which does not depend on output. The production decision…
Q: help with this question If a competitive firm finds that its average variable cost is decreasing at…
A: The method by which businesses determine the price and quantity of output that will provide the most…
Q: A perfectly competitive firm has the following total cost function: Total output Total Cost 0…
A: A typical company in the pure competitive industry sells the output level where its commodity price…
Q: Suppose a firm’s total cost curve is TC = 50Q2 + 10Q + 800 and marginal cost is MC = 100Q + 10. Find…
A: The marginal cost curve cuts the average cost curve and average variable cost at their respective…
Q: When the perfectly competitive firm produces the quantity of output at which marginal revenue equals…
A: A perfectly competitive firm maximizes profit by producing at the level where marginal revenue…
A
Total output |
Total Cost |
0 |
20 |
1 |
30 |
2 |
42 |
3 |
55 |
4 |
69 |
5 |
84 |
6 |
100 |
7 |
117 |
How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm’s profit-maximizing quantity of hats? Explain using marginal analysis. (c) If the rent of the building the firm occupies increases, what will happen to the firm’s profit-maximizing quantity of hats in the short run? Explain. (d) Draw a correctly labeled graph showing the firm’s demand and marginal cost curves, and show the profit-maximizing quantity of hats, labeled Q*.The figure shows a bakery's marginal and average cost curves, and its isoprofit curves. The bakery is a price-taker in a large bread market. Suppose the current market price is P₁. Based on this information, which of the following statements is correct? Price, Cost €6 (5 20 40 60 80 Quantity MC hoprofits AC 100 120 140 160 180 number of loaves Select one or more: a. The bakery would be better off raising its price up to its AC level. O b. The bakery would be minimising its loss at A. Oc. If the bakery is not yet in the market then it would not enter the market. d. If the bakery is already in the market, then it would always immediately exit the market because it is making a loss.The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 TOTAL REVENUE (Dollars) 90 80 20 10 0 1250 1125 1000 875 750 625 500 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, or 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 375 250 125 + 0 0 0 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) + 5 20 10 15 25 30 35 QUANTITY (Number of units) 40 Graph Input Tool Market for Goods 45 50 Quantity Demanded (Units)…
- A perfectly competitive firm has the following total cost function: Total Output(Units) Total Cost(₨)0 201 302 423 554 695 846 1007 117 How much will the firm produce if the price of the product in the market is ₨ 14 per unit? How will itchange its output if price rises to ₨ 16 per unit?Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC₁ and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
- 10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)What are the short-run and long-run costs of the production of Walmart?A firm currently produces 500 units at a price of $40. If it earns $1,500 profit, what must the average cost be? Note: The formula for Profit = Quantity X (Price - Average Cost) Provide your answer below:
- What will be the firms total profit?The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Quantity 0 It must fall. 100 200 300 400 500 600 It must rise to offset the increased cost. Total Cost Variable Cost (dollars) (dollars) $1,000 $0 1,360 360 1,560 560 1,960 2,760 4,000 5,800 Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level? The firm will shut down. O It will remain the same. 960 1,760 3,000 4,800If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market? Include a detailed set of graphs showing both the market and firm long run equilibration in reaction to the change. (Use of ai bot IS strictly prohibited. )