In the short run there are 400 firms in a perfectly competitive market, all with the same total cost function: SRTC = 2.5q2 + 5q + 40. Suppose the market demand curve is represented by P = 165 - 0.0875Q. The profit earned by each firm in the short run is a. $0 b. -$40 c. -$50 d. $30 e. $75
Q: How is the fit of the model associated with the value of Significance F? - the greater the fit, the…
A: The ANOVA (Analysis of Variance) table in the regression output summary provides a statistical test…
Q: In the neoclassical Supply and Demand model, what is meant by shortage? Group of answer choices…
A: Imbalances in the market reflect differences between supply and demand, leading to potential…
Q: 3. Using demand and supply analysis, graphically illustrate how the equilibrium price and quantity…
A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…
Q: The following table gives the quantity of money demanded at various price levels (P), the money…
A: Equilibrium in the money market takes place at the intersection of the money demand and money supply…
Q: Refer to Figure 4-1. If the market price is $3.00, what is the consumer surplus on the second ice…
A: The Consumer surplus is the gap between maximum price a consumer is willing to pay and actual price…
Q: The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new…
A: Total cost is the sum of fixed and variable costs. The average total cost is per unit of the total…
Q: 13. Assume that we compute current dollar GDP for 2021Q2 and find that it rose from 2020Q2. But we…
A: GDP stands for the gross domestic product. It refers to total monetary value of all final goods and…
Q: PQ7.2(b) Case: Average Revenue Demand Curve (AR): P=120-0.02Q Weekly Production (Q) Price (P)…
A: The demand curve represents the quantity demanded by consumers at different price levels.The…
Q: Which of the following items are included as money in Canada today? The cheque you have just written…
A: Any widely recognized form of payment used in return for goods and services is referred to as money.…
Q: Which of the following pairs of goods are NOT complements? 1. a. Hockey sticks and hockey pucks 2.…
A: Complimwntory goods are those goods which are consumed together.These goods when consumed or used…
Q: What will the federal government do to taxes?
A: The federal government uses fiscal policy as a tool to achieve economic stability.This involves…
Q: j. Can you verify that the post-merger total welfare strictly increases in the synergy level a? k.…
A: An oligopoly is a type of market structure in which a few larger companies control a large portion…
Q: When firms use new and better ways of producing all goods and services, OA. the opportunity cost of…
A: The opportunity cost is defined as the give-up cost of an individual by choosing alternative options…
Q: The social responsibility of an organisation is to use its resources and engage in activities…
A: Corporate Social Responsibility (CSR) is a self-regulating business model that helps a company be…
Q: In 2012, the Lee family had disposable income of $90,000, wealth of $360,000, and an expected future…
A: Economics is a social science that studies how individuals, businesses, governments, and societies…
Q: What differentiates for-profit and nonprofit healthcare organizations financially
A: This can be described as the concept that shows the ultimate or final gain of an individual or…
Q: The graph to the right shows the demand and cost conditions facing a price-setting firm. When output…
A: A trader's earnings or revenue is the term used to describe the financial gain they have…
Q: The figure above refers to the market for coffee. What might cause a shift from the original demand…
A: The link between the amount of a product provided and its price, while maintaining other variables…
Q: One hundred persons were asked, "Do you favour regional integration?". Of the 35 that answered "no"…
A: The given question has been answered from the perspective of 'Econometrics'.A contingency table is a…
Q: Required information 1. An increase in price; 2. A decrease in price; 3. No change in price; er to…
A: Given that there is a decrease in the price of substitute of good X. Substitute goods: Good X and…
Q: Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of…
A: Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of…
Q: In general, foreign entities: a. are borrowers of domestic (U.S.) loanable funds.…
A: U.S. portfolio investments is bought by lenders due to the highly developed, liquid, and efficient…
Q: Which of the following statements is false concerning partial derivatives? Consider the total cost…
A: A cost function, otherwise called a loss function or objective function, is a mathematical function…
Q: Chris receives a portion of his income from his holdings of interest-bearing U.S. government bonds.…
A: The nominal interest rate refers to the interest rate stated on a loan or investment without…
Q: Which of the following is NOT a commitment device? Select one: a. A non-refundable advance…
A: The provided question has been answered from the perspective of 'Behavioral Economics'A commitment…
Q: Question 3. True or False. If the Engel curve for a commodity slopes up, then its ordinary demand…
A: Consumer theory delves into the decision-making process individuals undergo when allocating their…
Q: PRICE (Dollars per unit) X 360 180 38- 0 Between Y and Z W True 25 False X For each of the regions,…
A: Price Elasticity of Supply measures the percentage change in quantity supplied of a good or service…
Q: РА Ps PB Pe PD PE A+B+F D ALK B C C+D+G D E J G QF QH I Using the figure above, CS pre-tax would…
A: The demand curve represents the quantity demanded by consumers at different price levels. The supply…
Q: Use the figure below to answer the following questions. Price (dollars per uni 25 20 15 10 S 0 50…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: Figure F shows the production possibilities of Robinson and Friday per hour. The comparative…
A: The quantity of one good that must be given up in order to produce one more unit of output is known…
Q: Suppose the first four units of a variable input generate corresponding total outputs of 200, 350,…
A: Marginal product is the additional output that is earned from using additional input in the…
Q: 12 We assume again the original assumptions of the Akerlof model, but now alter the information…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Perfectly competitive firms are small relative to the size of the market. All of the above are…
A: Perfect competition is a type of market where there are very large number of firms,which have no…
Q: This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world…
A: The tariff is imposed by the government to protect domestic industries, raise revenue, or exert…
Q: 6. Effects of a tariff in a large nation The following graph shows the domestic market for steel in…
A: A tariff is a duty charged on imports of goods. A country imports a large proportion of goods from…
Q: 2a. Graphic and describe the market for Spam. 2b. Graph and describe what happens in this market…
A: In this case, we have to discuss the term market of spam. The spam market is actually showing email…
Q: Advantages of market economies over command economies is that market economies O are more efficient,…
A: Market economies and command economies represent two distinct economic systems with differing…
Q: Explain what factors determine the Amount of Monopoly Power an Individual Firm is likely to have?
A: Understanding the factors that determine the amount of monopoly power an individual firm is likely…
Q: Figure: Comparative Advantage II Eastland and Westland produce only two goods, boxes of peaches and…
A: Opportunity cost is the units of one good that have to be foregone to produce an additional unit of…
Q: 3. Relationship between tax revenues, deadweight loss, and demandelasticity The government is…
A: Dead weight loss: It is defined as the loss of total welfare (or the total surplus = consumer…
Q: The market equilibrium quantity is tons of bolts, but the socially optimal quantity of bolt…
A: Externalities occur when there is an indirect impact on a party that is not directly related to the…
Q: You want to buy a $30,000 car. You can make a 10% down payment, and will finance the balance with a…
A: Loan amount refers to an original principal on a new loan taken or given . It can also be the…
Q: How can a social worker student further their growth?
A: For social work students, furthering growth involves a combination of education, practical…
Q: Which of the following could cause a change in the feasible region? Removing a redundant constraint…
A: Linear Programming:It is a technique that is used to minimize costs and maximize profit. We do this…
Q: An increase in the number of skilled working-age immigrants and their families to the United States…
A: Labor alludes to the physical or mental exertion applied by individuals in the production of goods…
Q: A large standby electricity generator in a hospital operating room has a first cost of $61,000 and…
A: The annual worth measures the overall cost of an investment or project over its lifespan. It…
Q: Refer to the figure at right. Government policy that noved the economy from A to B would be…
A: The Phillips curve shows the negative relationship between inflation rate and unemployment rate.…
Q: Your student group is setting up an internship fair. You invite companies looking for interns and…
A: The distribution of this subsidy could significantly sway the dynamics of the internship market,…
Q: factor 2 is $12, in what proportions should the firm use factors 1 and 2 if it wants to maximize…
A: Production function exhibits the relationship between the inputs and the output. Profit is the…
Q: here p is the price (in dollars) of a chair. (a) According to the model, at what price will…
A: Demand schedule represents negative relationship between the price and the quantity demand. It…
In the short run there are 400 firms in a
a. $0
b. -$40
c. -$50
d. $30
e. $75
Each firm in a perfectly competitive market has long-run total cost represented as LRTC = 100q2 - 10q + 100. The market demand is Q d = 2150-5P. At the long-run
a. 500
b. 1,000
c. 1,200
d. 2,000
e. 2,400
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Step by step
Solved in 3 steps with 1 images
- Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost structure of the typical ice cream producer is as follows. Average total cost is equal to 50 1 1 ATC(Q) +÷Q, average variable cost is equal to AVC(Q) Q, and marginal cost is equal to 2 2 MC(Q) = Q. 40 Suppose that demand for ice cream cones is given by PD = x QD. 3 300 How many firms will operate in the market for ice cream in a long run equilibrium?Q4. A perfectly competitive firm has a marginal cost given by MC(q) 0.25q and a total cost function of TC = 2+ 0.125q?. The Total Revenue TR = 12q. • What is the profit-maximizing price for this perfectly competitive firm? • What is the condition to find equilibrium output? What is equilibrium output for this particular firm? Draw a diagram and shade the area of Producer's Surplus and calculate the firm's producer's surplusFirms in the market for dog food are selling in a purely competitive market. A firm producing dog food has an output of 10,000 pounds of dog food, for which it sells for $0.50 a pound. At the output level of 10,000 pounds the average variable cost is $0.40, the average total cost is $0.70, and the marginal cost is $0.50. (a) What would you expect the firm to do in the short run? Explain.
- A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 100+8q+2q² and a marginal cost function (MC) of MC(q) = 8 +4q. At the given market price (P) of $18, the firm is producing 2.50 units of output. Is the firm maximizing profit? Yes What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)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…The graph shows the demand curve (D), average total cost curve (ATC), average variable cost curve (AVC), and the 90 - marginal cost curve (MC) for a perfectly (or purely) 80 - competitive firm. D= MR 70- Assuming that this firm maximizes profit, what is this firm's profit? 60 - ATC 50 AVC profit: $ 40 40- 30- MC 20 - 10- 40 10 20 30 50 60 70 80 90 Quantity Price and cost ($)
- In a perfectly competitive market, suppose that there are 1280 firms. Market demand is given by Q-1600-4P. All fixed costs are sunk and Total fixed cost is $120 and average variable cost is 160q. Find the equilibrium market price and market output, respectively: $160, 960 $300, 400 $100, 1200 $200, 800A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 1. Draw the graph for the firm (include ATV, AVC, MC, and MR curves) 2. At this output of Q = 100, calculate: total revenue (TR), total cost (TC), variable cost (VC), and fixed cost (FC). Show your work (formulas and calculations) 3. Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? ExplainSuppose that each firm in a competitive industry has the following costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm's quantity produced. The market demand curve for this 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. a. What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost.
- A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 1. Draw the graph for the firm (include ATV, AVC, MC, and MR curves)In a perfectly competitive industry, each firm has the following long run (total) cost function: C = q² – 50q² + 750q Where q is the firm's output. The market demand function is Q = 2,000 – 4p where Q is the market output and p is the market price. a. Find the long-run market supply curve for this industry. b. Find the number of firms in this industry in the long run. C. Suppose the government imposes an excise tax of $50 per unit of output. Find the number of firms in this industry in the long run.Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 −PThere are 9 firms in the market.a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve.b) Give the equation for each firm’s supply curve.the average-total-cost curve at its minimum? What is marginal cost and average totalc) Give the equation for the market supply curve for the short run in which the numbercost at that quantity?
