Use the following to answer questions 3-6: The market for sweet potatoes consists of 10 identical firms. The market demand curve is given by Q=100-5P . Each firm has a short- run total cost curve of C(q)=5+10q+2q?. What is the price in this market, P*? a. 0< p* <5 O b. 5< P*<10 O c. 10< P* <20 O d. 20< P*<50
Q: Refer to the accompanying table, which represents the costs and production for firm A. Use the given…
A: Answer: (1). No, the firm is not a seller of a perfectly competitive market. It is because here the…
Q: Suppose the market for coffee is characterized by perfect competition. Assume that all firms are…
A: Answer: Given, LATC (long-run average total cost) function: LATC=Q+5+25Q LMC (long-run marginal…
Q: Problem 2 All firms in a competitive industry have the following (long-run) total cost curve: C(q) =…
A: a) To get the long-run price of the market, initially it is required to ascertain q from the cost…
Q: The table below displays cost information for a firm operating in a perfectly competitive market.…
A: A perfectly competitive market is the market with large number of buyers and sellers, selling…
Q: competitive market price is $60, and a competitive firm’s total costs = q^2 - 6q + 990 and marginal…
A: * SOLUTION :-
Q: Consider a perfectly competitive market for wheat in Denver. There are 80 firms in the industry,…
A: Answer; Note: Short‐run supply curve of a firm is the portion of the marginal cost curve that lies…
Q: Suppose the price determined by the market is 1.5. Assume a perfectly competitive industry. Show all…
A: The firm would minimize the loss or maximize the profit at the output level where marginal revenue…
Q: n the long run, perfectly competitive firms are at equilibrium when: (LMC = Long-Run Marginal Cost;…
A: Under a perfectly competitive market structure, the firms are price takers who accept the market…
Q: Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech…
A: The perfectly competitive is the type of firm where there are large number of buyers and sellers.…
Q: A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the…
A: Variable cost is that cost component, which increases (decreases) with increase (decrease) in…
Q: Use the information provided below for Questions 17, 18, and 19. There are 100 perfectly competitive…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and…
A: In a perfectly competitive firm there are large number of firms producing identical products.
Q: In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A perfectly competitive market has a demand curve given by the equation Q = 2000 − 2p where Q is the…
A: Answer- Given in the question- A perfectly competitive market has a demand curve given by the…
Q: In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market,…
A: Perfect competition is an ideal kind of market structure where all makers and customers have full…
Q: Now lets discuss the short run on the same market. Assume there are 30 identical firms in a…
A: At equilibrium ; MR = MC
Q: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: The graph shows the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves…
A: # a competitive firm produces output where P=MC. At this P=MC, from the given figure it is easy to…
Q: Assume the market for coffee mugs is perfectly competitive. Firms in the market are producing…
A: A perfectly competitive firm is a price taker and maximizes profit by producing at P =MC
Q: Suppose that the pertectly competitive tuna industry is in long-run equilibrium at a price of $3 per…
A: At long run equilibrium, equilibrium price is $3 and equilibrium quantity is 600 million cans.
Q: Consider the competitive market for products known as Bergers where there are 500 firms – with each…
A: Perfect competition is a market structure where there is a large number of buyers and sellers exists…
Q: A market is at long-run equilibrium of P* = $194 and Q* = 76800 units. All firms in the market are…
A: Firms in perfect competition are price takers and accept the market price as given. They charge P=…
Q: The table below displays cost information for a firm operating in a perfectly competitive market.…
A: The total cost of the firm is divided by the fixed cost and the variable cost. variable cost changes…
Q: 1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y2 + 5y +…
A: a) In a perfectly competitive market, At equilibrium MC = P = AR= MR Cost function (TC) = 8y2 + 5y +…
Q: Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The…
A: Accounting profit refers to the net income for a corporation or sales less costs. You may calculate…
Q: 22. At a price of P1, at what output level would a perfectly competitive firm produce? a. Q1 b. Q2…
A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…
Q: In a perfect competition, the cost function of each of 100 firms is given as: 300 + 0.2q² + 4q + 10…
A: Total Cost, C = q3300+0.2q2 + 4q + 10Market demand, Q = 8000 - 200PFirm demand, Q = 8000 -…
Q: In the long-run equilibrium of a competitive market with identical firms, what are the relationships…
A: please find the answer below.
Q: n the short run, in order to maximize profit, a firm in a perfectly competitive market will operate…
A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…
Q: Question No. 1, Part (A) For a profit-maximizing, perfectly competitive firm with marginal cost…
A: Producer surplus = Price that producer gets - Price that the producer is willing to accept.
Q: ur answer, should the firm continue or stop the production? Justify. Output (Units) Total Revenue…
A: Average cost is the total cost divided by quantity of output. e,g. If the total cost is 48$ for 8…
Q: A firm in a competitive market has a short run cost curve given by C = Q' - 100 + 100Q + 100. (a) If…
A: ANSWER A perfectly competitive firm's short vun shut-down point is when p equals AVCmin If P…
Q: Meow Chow sells cat food in a perfectly competitive market and has the following cost curves:…
A: The firm produces at MC=P or the nearest lower MC P=0.63 and MC=0.6
Q: Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the…
A: The change in total cost to change in output is known as marginal cost. The marginal cost is the…
Q: Suppose that the market for black leather purses is a competitive market. The following graph shows…
A: If a firm is perfectly competitive, it can sell as much as it wants as long as it accepts the…
Q: The long-run cost function of a firm producing widgets in a competitive market is given by c(y) =…
A: We are going to use concepts such as Price = Minimum Average total Cost.
Q: Question 5.5. T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000…
A: Ques 5.5)The firm should shut down in the short run since price is less than average variable cost.…
Q: Suppose the book-printing industry is a competitive market, and it begins with a long run…
A: There are two possibilities, since you did not mention if the firm is incurring profit or loss in…
Q: n competitive markets, there are many small firms with each firm unable to influence the market…
A: P = $20 TC = 50 + 2Q + 3Q2 MC = 2 + 6 Q Competitive market equilibrium, P = MC 20 = 2 + 6 Q Q…
Q: Window cleaning is a perfectly competitive market in Boston. The daily market demand for window…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Suppose that the market for dress shirts is a perfectly competitive market. The following graph…
A: Perfectly competitive market is a type of market in which homogeneous goods, that are perfectly…
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: The following diagrams show the market for a good, as well as the cost curves for an individual firm…
A: Equilibrium is achieved at a point where demand curve intersects the supply curve. Breakeven occurs…
Q: A slight increase in the marginal cost of a firm definitely leads to a reduction in its output if…
A: In the oligopoly market, any change in the firm's output, cost or pricing will lead affect its…
Q: Suppose that the identical firms in a perfectly competitive market for cakes have long-run total…
A: To calculate P we know that MC is equal to The ATC in the long-run supply curve because the…
Q: The following diagrams show the market for a good, as well as the cost curves for an individual firm…
A: The below curve shows the individual firm's cost curve and the second graph shows the market demand…
Q: At the current short-run market price, firms will in the short run. In the long run,
A: please find the answer below.
answer the following question?
Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.
Marginal cost (MC): - it is the additional cost incurred due to the production of additional units of a good.
Total revenue (TR): - it is the total amount that a seller receives selling his goods and services to the buyers.
Marginal revenue (MR): - it is the additional revenue generated by selling additional units of a good.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on this figure, which of the following statements are correct? 8,000 Price, Marginal cost ($) 0 E Quantity of cars, Q At A, the firm makes positive profits. The firm makes the same profit at B and D. O Profit margin is the same at B and D. O The slope of the isoprofit is zero at D. MC Isoprofit A Isoprofit B AC 100Suppose 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…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 ($)
- 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…The figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right). Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A. Price Cost MC ATC A 4 2 1 D 2 4 6 8 10 12 Quantity Quantity Refer to the figure above. Suppose that the market has reached the long-run equilibrium. Then, due to news of the product's defects and recall, the demand falls by 4 units at each price. At the new equilibrium, each firm in the market earns and there will be a. zero economic profit; neither entry nor exit of firms b. positive economic profit; entries of new firms C. zero accounting profit; both entry and exit of firms d. negative economic profit; exit of existing firmsQ3: a. If a competitive firm is making loss in the short run, and it is selling a (100) units of a good at S.R(9). To be known that the AVC is S.R(10). What should the firm decide? If the quantity produced changed from 1 to 2, the total cost changed from 64 to 80 and the price is 40. b. What is the total revenue? c. What is the marginal cost?
- 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.On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot the points in order from left to right, starting with the point closest to the origin. You are given more points to plot than you need.) PRICE (Dollars per lamp) 100 8 8 70 50 30 20 10 0 PRICE (Dollars per lamp) 90 Suppose there are 5 firms in this industry, each of which has the cost curves previously shown. 100 Demand 80 10 70 20 30 50 60 70 QUANTITY (Thousands of lamps) On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: For the graphing tool to grade correctly, you must plot these points in order from left to right, starting with the point closest to the origin. You are given more…Suppose the market of facial paper is competitive. A typical firm producing facial paper has the following total cost function: С 3D100q - 3q? + 0.5q' where C is total cost and q is the output level. If the market price is $100, find the output and the profit of a typical firm producing facial раper. 2
- Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.The following table displays the average cost of producing a good at different levels of output in the long run. Output (units) Average Cost ($) 940 190 980 140 1,020 120 1,060 110 1,100 110 1,140 125 1,180 145 if all the firms in the market have the same LRAC curve, what is the minimum level of output needed for a low-cost firm to compete in the market? Write the exact answer. Do not round.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.