A perfectly competitive firm is currently maximising profit. If the wages of workers decrease, the firm should raise its price. lower its price. keep its price the same. increase its output. decrease its output. keep output at the current level.
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- A profit-maximizing business incurs an economic loss of $$30,000 per year. Its fixed cost is $45,000 per year. Should it produce or shut down in the short run? Explain Should it stay in the industry or exit in the long run? ExplainSuppose that over the short run (say the next 5 years), demand for OPEC oil is given by P = 165 – 2.5q. Here q is measured in millions of barrels a day. OPEC marginal cost per barrel is $15. What is OPEC’s optimal level of production? What is the prevailing price of oil at that level? Many experts contend that maximizing short-run profit is counterproductive for OPEC in the long run because high price reduces buyers to conserve energy and spur competition and new exploration that increases the overall supply of oil. Suppose that the demand curve just described will remain unchanged only if oil prices stabilize at $65 per barrel or below. If oil price exceeds this threshold, long run demand (over a second five year-period) will be curtailed to P = 135 – 2.5q. OPEC seeks to maximize its total profit over the next decade. What is the optimum output and price policy? (assume all values are present values)Below what price level would the firm shut-down?
- A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?T/F There is a absence of selling cost in a perfectly competitive market.A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?
- A firm sells a product in a purely competitive market . The marginal cost of the product at the current output is $5.25 and the market is$5.90 . What should the firm do?What would change if you found a new niche market to sell your product and your sales jumped to $200,000 and your input costs went up to $30,000? What is your accounting profit? Economic profit? Should you stay in business? Would other firms enter into the market? please show work!A firm sells its product i two different markets. the inverse demand in market A is PA=72-5QA & in market B, it is PB=60-3QB.it has fixed cost of 72.each unit it produces costs 12 that is marginal cost equals 12.to maximize profits, what quantities of output will be sold in each market & what will total profits be?
- Economics Suppose a firm in the short run has Fixed Cost - $100. Its Variable cost - g? where g is the quantity of output. Therefore MC - 2g. Suppose the market price is P - 28. If the firm maximizes profit, how much profit will it make? Round your answer to 2 decimal places. (Please answer with just a number; do NOT put a "$" sign).An ice cream producer has fixed costs of $70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs $10 in the market while the producer faces variable costs of $3 per tub. a. What is the economic breakeven level of production? b.Calculate the ice cream producer's monthly profits at full capacity. What would happen to the monthly profits if another ice cream producer entered the market, driving the price of ice cream tubs down to $7 per unit?A strawberry farm operating in a perfectly competitive market is operating below the break-even point. What is the best thing to do in the short run? Group of answer choices onsider shutting down or stopping production Borrow money and buy more capital equipment. Hire more workers. Increase the price of its strawberries.
