Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q? 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. What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost. а. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? Give the equation for each firm's supply curve. с.
Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…
A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…
Q: perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates…
A: Given, Price = $110 TC = 70 + 14Q + 2Q2 MC = 14 + 4Q
Q: Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run…
A: An industry is called constant cost industry when price of input remains same even when market…
Q: If a firm is making negative economic profit in a perfectly competitive output market (as described…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: ) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total loss.…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: A typical firm in long-run equilibrium in an industry with identical firms has a cost function given…
A: In the long run, firms produce at minimum efficient scale where production takes place at minimum…
Q: The total cost function of a firm in a perfectly competitive market is given by: TC =3Q2+ 2Q + 10.…
A: Here, the total cost function of a firm, which operates in the perfectly competitive market, is…
Q: Which of the following statements is correct? * In order to maximize profits in the short run, a…
A: Profits are the money that is earned by the businessman in return of selling its goods and services…
Q: If a perfectly competitive firm is producing an output level where average variable cost is equal to…
A: "A profit maximizing firm in a perfectly competitive market will maximize profits at a point where…
Q: At the current short-run market price, firms will in the short run. In the long run,
A: here it is seen that the firms are not incurring any fixed cost. and the price is equal to average…
Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…
A: here we find the correct answer as follow;
Q: Firms in an industry have the following cost function: C(q)=3q3-6q2+4q. If the market is perfectly…
A: C = 3q3 - 6q2 + 4q Divide C w.r.t q to get AC => AC = (C / q) => AC = 3q2 - 6q + 4…
Q: Find an individual firm’s supply curve. How many firms are there currently in the market?
A:
Q: if a perfectly competitive firm's output price is $10 and the firm is producing 500 units with a…
A: (Q) If a perfectly competitive firm's output price is $10 and the firm is producing 500 units with a…
Q: A perfectly competitive firm has a long-run cost function, C(q) = 8q2 + 72. In the long run, this…
A: In case of Perfect Competition, there are large number of buyers and sellers. All firms sell…
Q: In a perfectly competitive market with a constant cost industry, there are currently 100 identical…
A: A perfectly competitive firm produces at P = MC in short run. TC = Q2 + 4Q + 36 Differentiate TC…
Q: Consider a competitive firm with a short-run cost function C(q)=100q-q^2+(1/5)q^3+450 (a) Suppose…
A: We will use short run profit maximisation condition for perfectly competitive market to solve this…
Q: An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs…
A: Total cost is the total expenditure by the producer in the production process. It includes both the…
Q: Suppose the market consist of 300 identical firms, and the market demand is given by Q = 60 – P.…
A: here we calculate the price and Quantity for the following terms , as we know that at equilibrium…
Q: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $22. The…
A: Given Price $22TC = 0.1q^2 + 120. MC = 0.2q Profit Maximization is when the MC = MR
Q: pose a farmer is a price taker for soybean sales with cost functions given by the following:…
A: The farmer operates in a perfectly competitive market since he is a price taker implying that the…
Q: A perfectly competitive firm has the following total cost function:…
A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by market…
Q: Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the…
A: "In a competitive market a firm attains a long-run equilibrium at a point where price equates the…
Q: Suppose firm A’s total cost function for the long run is given as c(q) = 3q^3 + (48/q) . Below which…
A: In the long run, each firm earns zero economic profit, meaning long run equilibrium price is equal…
Q: the short run, a firm that finds itself earning a loss should compare the market price to which cost…
A: Fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: If the price in this market is $50, find the profit maximizing output of firm A by explaining the…
A: In a perfect competition market, there is a large number of firms that produce homogeneous products…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Firms in perfect competition earn zero economic profit in the long run. This means price is equal to…
Q: Which of the following statements is not correct? Only for competitive firms does average revenue…
A: A perfectly competitive firm maximizes profit by producing at level of output where Price = Marginal…
Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…
A: In a perfectly competitive market, price is constant so it is equal to marginal revenue. Firms are…
Q: Which of the following is a true statement about the difference between a price-taker firm and a…
A: A price taker firm is the firm which takes the prevailing market price of a service or good as given…
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: In perfect competition, the price of the product is determined where the industry Select one: a.…
A: A market with perfect competition is one with a large number of sellers and purchasers.Because all…
Q: Given the cost function underlying the figure, would two firms producing output Q (>0) always incur…
A: The total cost incurred by a firm operating in a market can be fixed cost or variable cost. Fixed…
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: Suppose that the manager of a firm operating in a competitive market has estimated the firm's…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: In a perfectly competitive market with constant cost industry and with the market demand…
A: Let this be the long run TC= 100 + 4q2 Then ATC=TC/q LRATC=100/q+4q Minimizing this :Putting the…
Q: Consider the following total cost function for an individual firm: C(q) = 10 + q +÷q?. a- At what…
A: Answer - "Thank you for submitting the question.But, we are authorized to solve only 3 subparts.…
Q: A perfectly competitive firm has total revenue and total cost curves given by: TR = 800Q TC =…
A: In perfectly competitive market, price is constant. So it is equal to marginal revenue revenue.…
Q: Suppose a firm in a perfectly competitive industry is currently producing output at its…
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: If the current market price is $6, the profit-maximizing output for this firm is ____________ If…
A: The profit maximizing output for perfectly competitive firm occur at level of output where P = MC.…
Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…
A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…
Q: foreign used car dealership which sells the 2020 Toyota Aqua Hybrid. His total cost function is…
A: in a competitive market there are large number of firms producing identical products thus acting as…
Q: Suppose that many small firms operating in the perfectly competitive market set-up. All firms are…
A: c (q)= 40+8q+(q^2/10) P= A - (Q/50) 78 firms in the market, firm’s maximum profit is $22.5
Q: At the current short-run market price, firms will in the short run. In the long run,
A: please find the answer below.
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…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Suppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand 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. b. Graph average total cost curve and the marginal cost curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…Suppose the quantity of apples supplied in yourmarket is 2,400. If there are 60 apple producers,each with identical cost structures, how manyapples does each producer supply to the market?Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2 Marginalcost: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.b. Graph average-total-cost curve and the marginal-cost curve for qfrom 5 to 15. Atwhat quantity is average-total-cost curve at its minimum? What is marginal cost and averagetotal cost at that quantity?c. Give the equation for each firm's supply curve.d. Give the equation for the market supply curve for the short run in which the number of firms is fixed.e. What is the equilibrium price and quantity for this market in the short run?f. In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Is there incentive for firms to…
- The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) C Price and cost (dollars per box) 10- 9- 00 N 1 0 10 MC 20 30 40 50 60 70 80 Quantity of beans (boxes per week) ATC 90 100 N1. Emad is a lettuce supplier in a perfectly competitive lettuce market in Kuwait. If the demand for lettuce in Kuwait is given by: Qo = 40,000 – 10,000P, Where Q is the quantity of lettuce boxes and P is the price of a lettuce box. In the short-run, Emad's has the following total cost function for his production of lettuce: TCimad = 0.25Q +Q +3 Assume that Emad is one of 1000 sellers in the Kuwaiti lettuce market with identical costs. Answer the following questions: e. wnat is tne market suppiy tunction in the short-run? 1. What is the short-run equilibrium price and equilibrium quantity in this market? g. Draw a rough sketch of the market demand and supply functions, showing the optimal point and all intersections with the horizontal and vertical axes. h. What is the demand function for Emad's lettuce in the short-run?
- Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia. The marginal cost curves for both firms are shown in the accompanying graph. a. Suppose the market price of tilapia is $2.50 per pound. Move point A to Ripple Rock’s quantity sold. Move point B to The Fishin’ Company’s quantity sold. b. How many pounds of tilapia do they collectively supply?________thousand pounds c. To achieve efficient production, The Fishin’ Company should supply _____ ("more", or "less", or "the same") it is currently producing, and Ripple Rock should supply __________ ("more", or "less", or "the same") it is currently producing.Suppose that each firm in a competitive industry has the following costs: where q is an individual firm’s quantity produced. The market demand curve for this product is 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 average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is 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 this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm’s profit or loss. Is there incentive for firms to enter or exit? In the long run with…Suppose 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.
- Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour, a unit of power). Draw2graphs, oneto represent the market (supply and demand), and one to represent asingle firm (demand, marginal cost, and average cost curves). Assume a u-shaped average cost Show the equilibrium price and the quantity produced by the market (Q) and by each individual firm (q).The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…Genel Gönderiler Dosyalar Sınıf Not Defteri Odevler QUESTIVVS; Q-1-Firm A is operating in a perfectly competitive market in the short-run and producing good X. Answer the questions below by incorparating the hereby indicated data. P=5 ATC=6 AVC=4 Equilibrium Quantity=50 Q-a-llustrate the case of the perfectly competitive firm A in a graphical illustration by using the relevbant data. b-Determine whether there is a profit or loss. c-Indicate the profit/ loss on the graph. d-calculate profit/loss. e-Calculate Total Fixed Cost (TFC) F-Determine and state.whether firm A should continue or stop producti on with a reference to resulting TEC. g-In some cases. some finms.carpy on vvith production even though they achieve 3 loss. What is the rational behind that? evaluate and comment oriefly. Q-2-a- Illustrate and explain comprenensively the case of diminish ing marginal retuns with grphical presentation in the short-rur What imoortant essons can be drawn from shis law evauate and omment N Bte…