A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi) =20. The minimum average cost is $10 per unit. Total market demand is given by ? = 1,500 − 50? What is the new long-run equilibrium for the industry?
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- A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi) =20. The minimum average cost is $10 per unit. Total market demand is given by ? = 1,500 − 50? . What is the industry’s long-run supply schedule?Suppose you are managing a firm in a perfectly competitive industry. Your demand, supply and cost functions are given by: Qd = 35 – 2P ; QS = 25 + P ; and TC(Q) = C(Q) = 50 + 10Q + 2Q2 What is the equilibrium price and quantity in this market? What is your firm’s MC function? In the short run, what is the profit maximizing level of output of the firm (i.e. how much output should the firm produce in order to maximize profit)? How much profit is your firm earning, in the short-run? What adjustments should be anticipated in the long run?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)
- In a certain perfectly competitive market, there are 150 firms, and the short-run total cost function of each is given by Short Term Total Cost (q) = 3q³ - 16q² + 40q + 432 (note that "q" is the quantity produced by the firm). Besides that, any firm (active or potential entrant) can produce according to the total cost function Short Term Total Cost (q) = 2q³ - 16q² + 148q (desconsidering the entrance or exit of firms). Furthermore, the inverse aggregate demand function of this market corresponds to Pd(Q) = 676 - 0.56Q (which "Q" is the total quantity demanded). Based on this information, please check True or False in the arguments below: 1-The profit that each producer makes in the short-run competitive equilibrium is greater than the profit that each producer makes in the long-run competitive equilibrium. True or False? 2-In the long-term competitive equilibrium, there are 200 active firms in this market. True or False? 3-The price p* = 105 and the quantity Q* = 750 composes the…Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…Each firm in a competitive market has a cost function of: C= 49 + q?. so its marginal cost function is MC = 2q. The market demand function is Q = 56 -p. Determine the long-run equilibrium price, quantity per firm, market quantity, and number of firms. The output per firm is. (round your answer to the nearest integer) The long-run equilibrium number of firms is (round your answer to the nearest integer) The long-run equilibrium price is $. (round your answer to the nearest penny)
- Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The total cost (TC) function for each firm is TC = 0.05q^2 + 1,080. If the marginal cost (MC) function for the firm is MC = 0.1q, a)what is the profit maximizing quantity for the firm to produce? b)what is the profit for the firm at the profit maximizing point?Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost function: TC = 4,500 + 2q + .0005q2 where TC is total cost in dollars and q is the quantity of output produced. a. Assume this perfectly competitive market consists of 800 firms with cost structures identical to the one above. What is the equation for the market supply curve? Assume the market demand curve is: Qd = 5,600,000 – 400,000P where Qd is the quantity demanded in the market and P is the commodity’s price in dollars. b. What is the market’s equilibrium price? c. Assuming the market is in equilibrium, using marginal revenue and marginal cost determine the firm’s profit-maximizing quantity of output? What does the profit-maximizing firm’s total economic profit equal? Assume the total cost function above: TC = 4,500 + 2q + .0005q2 is associated with the short-run total cost function that corresponds to the minimum point on the long-run average total cost curve and this is a…A perfectly competitive firm has the total cost curve is given by: TC = 270+13q+0.4q2 . If the market price is $65. What is the firm supply curve (supply equation) Select one: (a) p=13+ 0.8q : p<13 (b) p=13+ 0.4q : p>13 (c) p=13+0.8q : p>13 (d) p= 270 + 13q : P>13
- Each firm in a competitive market has a cost function of: so its marginal cost function is The market demand function is C=36+q², MC=2q. Q=36-p. Determine the long-run equilibrium price, quantity per firm, market quantity, and number of firms. The output per firm is. (round your answer to the nearest integer)Assume that the market for Wheat is perfectly competitive in a country. Each firm operating in the Wheat market has the following cost curves: ATC(Q) = 1000/Q + 200 − 10Q + Q2/3, MC(Q) = 200 − 20Q + Q2, AV C(Q) = 200 − 10Q + Q2/3. The minimums of the cost curves are attained at the following quantity levels: MC attains its minimum at Q = 10 and MC(10) = 100, AVC attains its minimum at Q = 15 and AV C(15) = 125, and ATC attains its minimum at Q ≈ 19 (≈ denotes approximate equality) and ATC(19) ≈ 183. Based on the above information, answer the following questions. (a) What is the price level P ̄ for Wheat, such that any firm operating in this market chooses shut down below P ̄? Explain. (b) Assume the price of Wheat is 200. Calculate the quantity supplied by each firm operating in this market. Show your workings. (c) What is the equilibrium price in this market in the long run. Explain.Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $22. The total cost (TC) function for each firm is TC = 0.1q^2 + 120. If the marginal cost (MC) function for the firm is MC = 0.2q, what is the profit maximizing quantity for the firm to produce? 0 22 110 120