Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 65+4q2. Suppose the market demand is D(p) = 1,260-39p How much profit does each firm make in the short-run equilibrium?
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- Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 11 + 5g?. Suppose the market demand is D(p) = 1,280 - 39p How much profit does each firm make in the short-run equilibrium?The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including number of firms, is possible. We have identical firms, each with a Total Cost curve of TC=862+q^2 and Marginal Cost curve MC=2q. Market demand is Q=856-2P. What is the number of firms in the market in the long run equilibrium?A catering company producing fruit ice, in the Tandy school, has a production function q = 10min(k,l), where k is capital and 1 is labor. a. 15% If v = 81000 and w = 500 and P = 8600, where v, w, and P are as per the lecture notes, how many units of fruit ice will be produced and how much profit will be obtained? b. 10% Draw the supply curve for this catering company.
- 1. 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 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 MC(Q) = Q. Now, suppose that a new scientific study comes out that shows that soil pollution from rock salt (a key input for making ice cream) is extremely hazardous to human health. In response, the government decides to impose harsh re-zoning restrictions on any land once used for making ice cream. This reduces the market rent for land used to make ice cream, which in turn lowers the opportunity cost of operating an ice cream factory. This reduction in the opportunity cost of capital causes the total fixed cost of ice cream production to fall to 32, but there is no change to variable cost. Give formulas for the typical ice cream producer's new average total cost curve ATC(Q) and marginal cost curve MC(Q).The long-run cost function of a firm producing widgets in a competitive market is given by c(y) = {"" y² + 10 for y > 0 O for y = 0 where y is the quantity of widgets. a. Find the lowest price at which this firm will supply a positive number of widgets in the long run. What is the output of the firm at this price? b. For the price you found in part (a), if there are 1,000 identical firms operating in this market, what would be the equilibrium market demand for widgets?
- 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 MC(Q) = Q. a.) Give a formula for the typical ice cream producer's average fixed cost AFC(Q). What is the typical ice cream producer's total fixed cost?A market is at long-run equilibrium of P* = S194 and Q* = 76800 units. All firms in the market are identical, and each has a marginal cost curve of P = 2 + 2g, where g is the quantity produced by that firm only. How many firms exist in the market? Answer:Problem IV: A perfectly competitive firm has a total cost function given by T C(Q) = 2Q3 – 20Q2 + 100Q. a) What will be the optimal quantity produced by the firm if the market price is P = 300? What will be the profit? (Q=10, Profit=2000) b) How about if the market price is P = 45? What will be the optimal quantity and profit in this case? (Q=0, Profit=0) c) Find the break even point and the shut down point. (50) d) Assuming the initial market price of $300, what will be the optimal quantity and profit if a new fixed cost of $1000 has to be incurred by the firm? How about if this FC=$3000?
- You are the owner of a firm in a perfectly competitive market. The market supply and demand are given by the equations: D: P=8 - 0.1Q S: P = 0.2 + 0.05Q Your firm's marginal cost curve and total cost curve are: MC = 0.1 + 0. 2q TC = 20.425 + 0. 1q +0.1q? What is the firm's profit (positive) or loss (negative) ? O 2.2 (profit) O 18.225 (profit) O -18.225 (loss) -2.2 (loss)Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost function is TC=579+12q+q^2 and Marginal Cost function is MC=12+2q. What quantity does each firm produce in the long-run equilibrium?The market for quinoa is perfectly competitive and consists of firms that all have the same cost function, C(q) = 200 + g²/2. What is each firm's supply function? Oq = Oq = p Oq = p+ 25 Oq = p - 25 Suppose the market is in a long-run equilibrium. What is the price of quinoa? Op = 5 Op = 10 Op = 15 Op = 20 Op = 25 The market-level demand curve is Qp = 2000 - 50p. What is the equilibrium market-level quantity? Og = 250 Oq = 500 Oq = 750
