The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the total cost equation of an individual firm in the industry is given by the expressionTC 1000+2Q+0.01Q2 What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answer
Q: Q: determine whether the following statements are true or false: a) Average fixed costs increase…
A: Fixed cost(FC) do not change in the short run regardless of the volume produced or sold. Market…
Q: A perfectly competitive firm has the following total cost function: Total Output (Units) Total…
A: In a perfectly competitive firm there are large number of firms producing identical products thus…
Q: Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output…
A: Firms operating in a market incur fixed costs and variable costs. Fixed costs will not change if…
Q: [This question concerns long-run equilibrium so all variables in the questions are long-run.]…
A: ANSWER
Q: In a perfectly competitive market, assume the market price is $10 per unit, and the…
A: Answer; The profit amount at the profit-maximizing quantity is $90.
Q: Consider a perfectly-competitive industry where each firm has the following long run cost function…
A: In perfectly competitive market, price is constant so it is equal to marginal revenue. Profit is…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…
A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…
Q: Assume that the function TC = Q² – 3Q + 500 represents a perfectly competitive firm's total cost.…
A: Given : Total Cost = Q2 - 3Q + 500 Price = 67
Q: In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues…
A: A perfectly competitive market is also known as a price taker market because perfect competitive…
Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…
A: Short-run total cost = 8 + 0.5Q1/2 MC = Q Demand function = 1000 - 100P 1) The short-run supply…
Q: Suppose that a perfectly competitive industry consists of 240 firms and fixed cost of an individual…
A: The competitive market consists of many buyers and sellers. All sellers have identical product.…
Q: Suppose that price is below the minimum average total cost (ATC) but above the minimum average…
A: In perfect competition, every seller in the market would be a price taker. A perfectly competitive…
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: TC=712+q2Now,AC=TCqAC=712q+q
Q: At its current level of production, a profit-maximizing firm in a competitive market receives $15.00…
A: Given; Price= $15.00 Average total cost= $13.0 Output level= 1000units TR=P×Q =15×1000…
Q: Consider a competitive constant-cost industry in which each firm's marginal and average costs are…
A: MC = 4q AC = 2q + 50/q
Q: The long-run cost function of the representative firm in an industry is C(q)=q3/3-6q2 +30q and the…
A: Long Run Cost : C(q)=q3/3-6q2 +30q Market Demand : D(p)=3600-120p Marginal Cost : MC=dTC/dq…
Q: Assume the market for tortillas is perfectly competitive. The market supply and demand curves for…
A: Given : The firm is competitive Supply : P = 5 Q Demand : P = 120 - 10 Q Marginal cost : MC = 20q…
Q: a perfectly competitive industry, Price and marginal revenue are unrelated P = MR P > MR P < MR…
A: in perfect competitive market, 1)there are many number of sellers and buyers which turns the market…
Q: Table: Total Cost for a Perfectly Competitive Firm Quantity per Period Total Cost $10 16 20 3 22 24…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: • Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. •…
A: In perfect competition, eqm q(quantity) is found by the intersection of MC(marginal cost) and…
Q: The wood-pallet market contains many identical firms, each with the short-run total cost function…
A: The perfectly competitive market structure is characterized by the large number of firms and buyers.…
Q: Suppose that the current price per unit of the good is 10 pounds. A perfectly competitive firm faces…
A: Introduction A perfectly competitive firm is where there are large number of firms available in the…
Q: A firm sells its output in a PCM. The firm’s short-run cost function is given by SC = Q3/300 - 0.2Q2…
A: The firm’s short-run cost function is given by SC = Q3/300 - 0.2Q2 + 4Q + 10. Q = 8,000 – 200P1⁄2 ,…
Q: A market contains many identical firms, each with the short run total cost function STC(Q) = 400 +…
A: When each firm in the industry is earning zero profit, then it means that it is charging a price…
Q: is currently earning zero economic profit. How many firms are in this industry, and what is the…
A: Given : Short run cost function : Marginal Cost function : Demand function of industry : Average…
Q: Consider the following cost curves faced by each firm: TC = 60 +0.5q and MC = q, where q is the…
A: Since price is constant in perfectly market so price is equal to marginal cost at profit…
Q: The total cost of producing 6 units of output is __________________ If the firm is producing at an…
A: Total Cost = Total Fixed Cost + Total Variable Cost Zero Economic Profit occurs when Total Revenue =…
Q: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…
A:
Q: A perfectly competitive industry has a large number of potential entrants. Each firm has an…
A: The short run supply function for each firm is p= MC = q -10 => q = p+10
Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…
A: Perfectly competitive market is a market structure where all seller sell identical products, firm…
Q: Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC P4…
A: If the firm operates in the competitive market or perfect competition, the firm produces the…
Q: A firm has short-run costs such that the lowest average variable cost it has for any quantity…
A: For a competitive firm. Total revenue is TR(q)=Pq a. Marginal revenue is MR(q)=dTR(q)dq=P
Q: The Hamilton Company is a member of a perfectly competitive industry. Like all members of the…
A: Perfectly competitive firm: It has the greatest level of competition.
Q: Consider a perfectly competitive firm with a short-run total cost function given by TC = q2 +…
A: Answer to the question is as follows :
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: The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the…
A: The perfect competition is a market type which has a large number of buyers and sellers of identical…
Q: Consider an industry in a competitive market that consists of 100 firms with identical short run…
A: 100 firms C (q) = 50 + 0.5q2 MC = dC/dq MC =q
Q: A firm sells its output in a PCM. The firm’s short-run cost function is given by SC = Q3/300 - 0.2Q2…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…
A: Given: Total Cost : TC=470+13q+q2 Marginal Cost : MC=13+2q Market Demand: P=401-2Q
Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…
A: Given:- Demand Function: QD=600-P Cost Function: TC=q3-20q2+120q At equilibrium Market demand=Market…
Q: Consider a competitive constant-cost industry in which each firm's marginal and average costs are…
A:
Q: Consider a perfectly competitive market in which each firm's short-run total cost function is C= 25+…
A: Answer -
Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: George's Goji Farm has this short run total cost equation for goji berries, where Q is the number of…
A: The marginal cost (MC) or the incremental cost is the gain in cost that results from producing an…
Q: A perfectly competitive fim has the following total cost function: Total output Total Cost 20 1 30 2…
A: The competitive firm determines the profit-maximizing price and output at the level where the…
Q: Suppose that a perfectly competitive industry consists of 192 firms and fixed cost of an individual…
A: Total cost is the sum of Fixed cost and variable cost. Average variable cost is the variable cost…
Q: Consider the following cost curves faced by each firm: TC = 60 + 0.5q and MC = q, where q is the…
A: In perfectly competitive market, price is constant so price is equal to marginal revenue. Profit is…
Q: The market determined price in a perfectly competitive industry is P = Rs. 10. Suppose that the…
A: Profit maximization occurs at the output level where the marginal revenue and the marginal costs are…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…
A: TC=404+19q+q2 MC=19+2q Q=316-P or, P= 316-Q P = $86
The market determined price in a
TC 1000+2Q+0.01Q2
What is the firm’s profit-maximizing output level and profit? Is this profit normal profit or supper normal profit? Justify your answer
Step by step
Solved in 2 steps
- 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 RConsider 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.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
- 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 this product is Demand: QD where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. = 120 – P а. 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 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? с. 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. е. 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…Kyle owns a foreign used car dealership which sells the 2020 Toyota Aqua Hybrid. His total cost function is given by TC = 2q4 - 7q3 + 3q - 1845. His profit maximizing quantity is 24 cars. What is the long-run price of his Toyota Aqua Hybrid, in a perfectly competitive industry?A perfectly competitive firm sells its product at a price of$0.10 per unit. Its total and marginal cost functions are: TC= 5 - 0.SQ + 0.001Q2 MC= -0.5 + 0.002Q, where TC is total cost($) and Q is output rate (units per time period). Solve for the profit maximizing quantity for this firm. My Question: in order to determine just profit maximizing quanitity, do we make MR=MC so the equation would be 0.10 = -0.5 + 0.002Q. Solve for Q then plug that number into the Q in the total cost equation to get the profit maximizing quantity?
- 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).A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 3rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized. 20 MacBook esc 20 F3 OOD F1 F2 F4 2$ W R tab 6 5 %A4 %# 3Suppose 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…
- Consider the following cost curves faced by each firm: TC = 60 +0.5q and MC = q, where q is the individual output for each firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the long run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Forko In the long run, firms will either enter or exit the market. a b. In the long run, firms will enter the market. In the long run, firms will exit the market. In the long run, firms will neither enter nor exit the market.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…Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?