3. Assume a firm is facing the market demand curve: q = 100-2p, its total cost function is: c(q) = 2q². a. What is the firm's marginal revenue? b. What is the firm's marginal cost? c. What is the output level "q" when the firm is maximizing its profit? d. What is the firm's maximum profit?

3. Assume a firm is facing the market demand curve: q = 100-2p, its total cost function is: c(q) = 2q². a. What is the firm's marginal revenue? b. What is the firm's marginal cost? c. What is the output level "q" when the firm is maximizing its profit? d. What is the firm's maximum profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Complete the following table. Note that the firm in question is profit-maximizing in a competitive…

A: A firm in a perfectly competitive market maximizes profit by producing at MC = P Here MC = Marginal…

Q: A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal costs…

A: A single firm might face a downward-sloping demand curve because of the law of demand, which states…

Q: Profit maximisation: Problem-solving example #1 A firm has the demand function: P = 50-0.5Q and the…

A: A firm maximizes its profit where Marginal Profit is equal to Zero. Marginal Profit is the…

Q: A hair salon, has very loyal customers and faces a weekly demand for blowouts equal to qD = 1,040 –…

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: A firm faces the following average revenue (demand) curve: P= 130 - 0.02Q where Q is weekly…

A: Firm maximizes profit by producing at a point where marginal revenue is equal to marginal cost

Q: If the firm produced and sold an additional unit of output, by how much would its total revenue…

A: Total revenue is obtained by multiplying the price with the quantity of the product in this economy.…

Q: nd P is price. What is the correct expression for total profit? a.25Q – 2Q2 – 15

A: Given : TC = 15 + 5Q + Q2 Q = 30 – P or P=30-Q

Q: The current market price in a competitive industry is $15. Every firm in the industry operates a…

A: In competitive industry, there are large number of firms selling identical goods.

Q: 3. A firm's short-run total cost function is TC = 4q²-2q+7 he firm sells in a perfectly competitive…

A: The firm does not control over the price in the perfectly competitive market. The firm produces…

Q: xceed marginal revenue, then: me firm should increase its production level. he firm's average costs…

A: Equilibrium of a firm is at the level where marginal cost is equal to marginal revenue curve and…

Q: Suppose total revenue and total costs are given by TR = 1000-8Q^2 and TC= 10Q^2. MR=100-16Q and MC =…

A: With the process of profit maximisation, a company or business aims to maximise profits by adjusting…

Q: 4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its…

A: A firm in a perfectly competitive market is considered as a price taker. Because the firms in a…

Q: 2. A profit maximizing firm has a demand -3 function X= 2000PX and a cost function C(X)=5+4X.…

A: Profit is the excess income earned by the producer which is left after paying off all the expenses…

Q: 7 A firm produces widgets in a highly competitive market. The current market price is $100 per…

A: profit maximizing quantity refers a condition where profit is maximum. here we calculate profit…

Q: a. What is the firm's marginal revenue? b. What is the firm's marginal cost? c. Find the firm's…

A: By using the demand function we calculate the marginal cost and marginal…

Q: You're running a small firm, and you have an estimate of both your cost function and your demand…

A: Total revenue is the product of price and quantity. Profit is the difference between the total…

Q: 3. A profit-maximizing firm has the total-cost function C = - a? + 6x + 50 and sells into a…

Q: A firm’s demand curve in period 1 is Q=25 - P. Fixed costs are 20 and marginal costs per unit are 5.…

A: Demand curve: It represents the relationship between the price and the quantity demanded of a good…

Q: 4. Assess which of the following is true and which is false. A firm’s profit equation is given by π…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: A firm operates in a perfectly competitive market. Its marginal cost = to its marginal revenue. It…

A: Given marginal revenue= marginal cost, there would be three cases in perfect competition: One where…

Q: 2. the price that maximizes the firm's profit 3. the firm's revenue

A: We know that the profit function is : Profit = TR - TC Profit = 80q - ( 110+ 40q +10q2 ) TR = 80q…

Q: Consider the graph, which depicts a single competitive firm hat wishes to maximize profits given its…

A: The perfectly competitive market decides the price and individual firm does not have control over…

Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200?. 4a.What is the firm's…

A: Marginal cost is the cost incurred when one additional unit of output is generated.

Q: 5. A firm produces a product in a competitive industry and has a total cost of function…

A: Answer

Q: Suppose total revenue and total costs are given by TR = 1000-8Q^2 and TC= 10Q^2. MR=100-16Q and MC =…

A: With the process of profit maximisation, a company or business aims to maximise profits by adjusting…

Q: 1. Suppose a firm sells its output for P=20 - Q1000 Where Q is the quantity it produces and sells.…

A: here we calculate the profit maximizing point and quantity by using MR and MC approach , so the…

Q: A firm faces the demand curve: P = 1,350 - 8Q. What is the firm's revenue maximizing price? Enter as…

A: Total revenue is the product of price and quantity.

Q: Assume a firm is a small business and act as a price-taker in the market, the market price of the…

A: Firm's price product = 20 C(q) = 0.5q2+5q+100

Q: Quantity Price 0 1 2 3 4 5 6 7 8 co 9 10 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Marginal Cost…

A: At the level of stability, the firms are earning maximum profits. This is because at this point, the…

Q: 3. A firm has revenue given by R(q) = 100q - 3q² and its cost function is C(q) = 100 + 10q. a) What…

A: Profit is the difference between revenue and cost function.

Q: Suppose at the level of output q = 100, the average variable cost is $7/unit, the marginal cost is…

A: Given information: Output q = 100 Average variable cost AVC= $7 per unit Marginal cost MC= $8 per…

Q: A firms cost and revenue functions look like this in 3 questions below. Total cost: TC = 100 + 2Q +…

A: Given: Total cost: TC = 100 + 2Q + Q2 Marginal cost: MC = 2 + 2Q Price: P=22 The profit maximizing…

Q: At its current level of production a profit-maximizing firm in a competitive market receives $15 for…

A: A competitive market, often referred to as a perfectly competitive market, is a type of market…

Q: 2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q)…

A: Ans a and b

Q: (3) The demand curve of a firm is p=1200-21g and its total cost is C(@)= 2g-66q +600g +1000 where q…

A: find below the answer.

Q: "A profit maximizing firm seeks to produce at an output where its marginal revenue is equal to its…

A: Profit maximization: Profit maximizing firms produces and sells the goods at the point where the…

Q: Flag 1. A company faces TC = y2 + 12 and market demand y = 24 – p. a) What is the firm’s profit?,…

A: The total cost function consists of the fixed cost as well as the variable cost. The marginal cost…

Q: Suppose you are the owner of a burger restaurant that has a cost of production given by C = 400 +…

A: The cost of production for the burger restaurant is given byC = 400 + 0.02q2where,q = number of…

Q: Problem 3 A furniture maker builds and sells wooden benches. The demand function for the benches is…

A: Profit is the excess income earned by the producer which is left after paying off all the expenses…

Question

3. Assume a firm is facing the market demand curve: q = 100-2p, its total cost
function is: c(q) = 2q?.
a. What is the firm's marginal revenue?
b. What is the firm's marginal cost?
c. What is the output level "q" when the firm is maximizing its profit?
d. What is the firm's maximum profit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

1. Competitive market Practice problem Wheat farmer Joe has the cost function of C(q) 160,000 + 100q+q². The market for wheat is competitive and there are many farmers like this, with the same cost function. The demand function is Q = 15000 - 10p. = (a) In the short run, below which price should Joe shut down? (b) In the short run, there are 19 farmers like Joe (so 20 farmers in total). How much should Joe produce? What will the price be? (c) What is the price below which Joe would shut down in the long run? (d) How many farmers will operate in the long run? (e) What is the market elasticity of demand at long-run equilibrium point?
A firms cost and revenue functions look like this in 3 questions below. Total cost: TC = 100 + 2Q + Q2 Marginal cost: MC = 2 + 2Q Price: P=22 What is the profit maximizing output? a. 8 b. 10 c. 12 d. 25 e. All the other answers are wrong. What is the firm's profit? a. -14 b. -6 c. 0 d. 15 e. All then other answers are wrong. What are the fixed costs and variable costs at the profit maximising output? a. FC=0, VC=220 b. FC=100, VC=80 c. FC=80, VC=244 d. FC=100, VC=120 e. All the other answers are wrong.
1. Suppose a perfectly competitive firm has a cost function described by TC = 200Q+Q² +225 Each firm's marginal revenue is $240. a. Find the profit maximizing level of output. b. Is this a short-run or long-run situation? How do you know? c. Assuming that this firm's total cost curve is the same as all other producers, find the long-run price for this good.
A profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true? a If the firm produced, the firm's revenues would have been lower than $100. bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.
Question 7 A firm, focusing on producing toothpaste has a demand function 2? = 10 − 0.25?. If fixed cost per unit is -(+ and variable cost per unit function is 2? − 20 + -)), where Q is number of toothpastes produced and P is the price per toothpaste: a) Determine the number of toothpastes that maximizes the company’s profit. b) How much should the firm charge for one toothpaste? c) Find the total profit at the profit maximizing level of output. d) Using the own price elasticity of demand, comment on the firm's pricing policy options.
Explain it early but correctly.
A competitive firm has a cost function C=2q³-12q²+20q+100. The optimal output at price of 92 is a. b. C. d. e. a. b. C. d. e. A competitive firm has a cost function C=2q³-12q2+20q+100. At price 92, the optimal profit is a. b. C. d. e. 10. 8. 6. A competitive firm has a cost function C=2q³-12q²+20q+100. At price 92, the optimal producer surplus is a. b. 4. None of the above. C. d. e. -220. 634. 529. 332. None of the above. -120. 734. 629. A competitive firm has a cost function C-2q³-12q²+20q+100. The firm's supply curve is given by 432. None of the above. P=2q³-12q²+20q+100 for q20. P=6q²-24q+20 for q20. P-6q²-24q+20 for q23. 2q³-12q²+20q+100 for q≥12. None of the above.
I need answers of B, C, D. Thanks
10
QUES if you have the following graph MC MR $30 ATC AVC 20 15 75 80 100 Output
Consider a kettle firm A in a perfectly competitive market. Table 1 shows the quantity produced per hour (Q) and the total cost (TC) in the short run. Quantity 0 12345C70 2 6 8 Total cost 17 30 40 55 75 100 130 165 210 Fixed cost 17 17 17 17 17 17 17 17