A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25 +0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)

A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25 +0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A firm has short-run costs such that the lowest average variable cost it has for any quantity supplied greater than zero (i.e. for Qs > 0 ) is $10 a unit. The lowest average total cost (in the short-run) for any quantity supplied is $14 a unit. That is, $10 and $14 describe the height of the AVC curve and ATC curve at their respective minimums. Suppose the firm is in a perfectly competitive market. a. What is the marginal revenue of a unit at the market price of P? b. What is the average revenue at the market price of P?
A manufacturer of electric switches in a competitive industry has a fixed monthly cost of $50,000, total monthly variable cost $100,000, and marginal cost of $5. What is the profit if the monthly production is 100,000 units? Assuming that prices of switches fluctuate from month to month, what is the lowest price the manufacturer can accept in order to stay in business in the long run and in the short run. Will those prices be the same? Show your work
Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $10,A) What level of output should the firm produce to maximize profits or minimize losses?B) What are the profits at the optimal output amount? C) Should the company produce this optimal amount or should it shut down?
assume your price is equal to marginal cost and marginal cost slopes upwards. in the short run, a firms profit max can only lie on the downward sloping part of its marginal cost curve. true or false
The following table gives information about a firm’s short-run cost function in a perfectly competitive industry – candy manufacturing. a) What quantity will the firm supply when price of candy is $2? When price is $5? When price is $8? b) Consider the case where price = $2. Suppose that you have been renting capital (a candy-making machine) for a long time under a long-run capital rental agreement, but now the rental contract is about to expire. Should you renew your capital rental contract or not? Explain why or why not. How would your answer change if price is $5? How would your answer change if price is $8? Quantity Total Cost Average Variable Cost Average Total Cost Marginal Cost 0 10 1 15 5 15 5 2 17 3.5 8.5 2 3 18 2.66667 6 1 4 20 2.5 5 2 5 25 3 5 5 6 33 3.83333 5.5 8
An industry with many stores offer laminating as a service to their customers. Suppose that each store that offers this service has a cost function C(q)=50+0.5q+0.08q2 and a marginal costMC=0.5+0.16q. Suppose the going rate for laminating is R8.50 per sleeve which each store is compelled to charge. 1. Is the industry in long run equilibrium? Use calculations to either prove or disprove your findings.
A competitive firm has the short-run cost function C(y) = 4y3 – 2y? + 10y + 2. At what price will the firm agree to produce in the short-run? What is the shutdown condition for this firm?
A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 + .1*Q12 and TC2= 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 160 – 10*P. What is the profit maximizing output for the firm?
A typical firm in long-run equilibrium in an industry with identical firms has a cost function given by C(q) = 10,000+ 2q² What is the equilibrium price? The equilibrium price is $ (Enter your response rounded to two decimal places.) A
A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 + .1*Q12 and TC2= 2*Q2 + .1*Q22. The firm’s demand schedule is Q = 160 – 10*P. What is the profit maximizing output for the firm?
In a certain perfectly competitive market, there are 150 firms, and the short-run total cost function of each is given by Short Term Total Cost (q) = 3q³ - 16q² + 40q + 432 (note that "q" is the quantity produced by the firm). Besides that, any firm (active or potential entrant) can produce according to the total cost function Short Term Total Cost (q) = 2q³ - 16q² + 148q (desconsidering the entrance or exit of firms). Furthermore, the inverse aggregate demand function of this market corresponds to Pd(Q) = 676 - 0.56Q (which "Q" is the total quantity demanded). Based on this information, please check True or False in the arguments below: 1-The profit that each producer makes in the short-run competitive equilibrium is greater than the profit that each producer makes in the long-run competitive equilibrium. True or False? 2-In the long-term competitive equilibrium, there are 200 active firms in this market. True or False? 3-The price p* = 105 and the quantity Q* = 750 composes the…