Suppose a firm has the cost function C = 100+2q2 in a perfectly competitive market. Suppose price equals $20. a) What is the firm’s output decision? b) What is the firm’s profits if it operates? c) Should the firm shut down in the short run
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- A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long- run cost function C = 100 + q². As a result, a firm's marginal cost function is MC = 2q. In the long-run competitive equilibrium, (a) How much does the firm produce? (b) What is the equilibrium price? (c) If the market quantity demanded at the equilibrium price is Q = 2500, how many firms are in the market?Consider a competitive firm with a short-run cost function C(q) = 100q−q2 + 1/5q3 +450. (a) Suppose that the market price is $205. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (b) Suppose that the market price is $105. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (c) Suppose that the market price is $205 and there is a tax of $65 per unit produced. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why?Consider the following cost curve for a firm in a competitive industry where the market price equals $150. C = + 6g + 1,500. What is the firm's marginal cost (MC)? MC =- (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $- (Round your response the nearest dollar.) What is the firm's profit? The firm earns a profit of $. (Round your response to the nearest penny.) In the short-run, this firm should shut down produce E 20 étv MacBook Air 80 DII DD F2 F3 F4 F8 ! @ # 2$ & 2 3 4 5 7 8 9 Q W E R Y P A S D F G H K C V B M ption command comman N
- A firm in a perfectly competitive market has a total cost given by TC = 50 + 10q + 2q2. The market price is $50. Which statement is true? A) The firm supplies q = 5 units in the short run, making a loss. B) The firm supplies q = 10 units and makes zero economic profit. C) The firm supplies q = 10 and makes an economic profit. D) The firm supplies q = 5 units in the short run and makes an economic profit. E) The firm supplies q = 15 units in the short run and maximises the revenue.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 ATC(Q) = +;Q, average variable cost is equal to AVC(Q) Q, and marginal cost is equal to MC(Q) = Q. How many ice cream cones will each producer sell in a long-run equilibrium in the market for ice cream?Consider the following cost curve for a firm in a competitive industry where the market price equals $150. C =-9 + 6q + 1,500. What is the firm's marginal cost (MC)? MC =- (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $. (Round your response to the nearest dollar.) What is the firm's profit? The firm earns a profit of $. (Round your response to the nearest penny.) In the short-run, this firm should DEC 20 étv MacBook Air 80 DII F2 F3 F4 F7 FB F9 @ %23 $ & 3 4 5 6 7 8 9 W E Y P S D F H J K ? C V N M command option nd .. .- リ * 00 R
- In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price (P), marginal cost (MC), and average total cost (ATC)?Consider the following cost curve for a firm in a competitive industry where the market price equals $150. C= =q° + 6q + 1,500. What is the firm's marginal cost (MC)? MC = 150. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at 12 units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $ (Round your response to the nearest dollar.) What is the firm's profit? The firm earns a profit of $. (Round your response to the nearest penny.) In the short-run, this firm should shut down produce DEG tv 20 MacBook Air PII SO F11 F12 FS F10 F9 F6 F7 F2 F3 F4 & #3 $ 4 6 7 8 - 2 3 { E R Y P Q А F G H J K L D ? C V M command option command .. .- レ Λ.A competitive firm's total cost is TC(Q)=3Q2+2Q+47 when the output level is Q. Accordingly, its marginal cost is MC(Q)=2*3*Q+2. The market price is P=14. You are told that the firm will not shut down in the short run. Please find its profit at the optimal output level.
- The marginal cost of a competitive firm is MC(Q)=4Q+7. The market price is 80. Suppose the current output level is Q=15. At this point, would the firm like to increase or decrease its output level? Enter 1 for increase, 2 for decrease.Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?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?