Consider a competitive firm with costs of C(q) = 64 %3D + 4q<. If price is $40, what is the quantity the firm will supply, and what are its profits? Group of answer choices q = 4, T = 0 None of the other answers is correct. a = 5 TI = 36.

Consider a competitive firm with costs of C(q) = 64 %3D + 4q<. If price is $40, what is the quantity the firm will supply, and what are its profits? Group of answer choices q = 4, T = 0 None of the other answers is correct. a = 5 TI = 36.

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: The firm has total fixed costs of $9 and a constant marginal cost of $3 per unit. The firm will…

A: Here, total fixed cost of a firm is given as $9 and constant marginal cost is given as $3 per unit.…

Q: The market price a perfectly competitive firm has to take is pm and the total cost to the firm is…

A: TC = aq + Bq2 + y Price = Pm Equilibrium in a perfectly competitive market occurs when price set…

Q: A price-taking firm in a competitive industry of a good that is continuously divisible (like sand)…

A: The profit maximization problem for a price-taking firm involves finding the quantity that maximizes…

Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…

A: Cartels, in an oligopoly, refer to an agreement in which two or more firms limit their production…

Q: Price (per unit) 9 MO -8 Quantity (per period) (Figure: Marginal Decision Rule) If P1 is the market…

A: The Marginal Decision Rule in production is a guideline used by producers to determine whether to…

Q: If supply curve of firms in competitive market is P = 120 - 60Q1. Obtain supply curve of market, for…

A: In a perfectly competitive market, each firm is identical. Therefore, the market supply curve is an…

Q: Suppose that the price is $6. Assuming profit maximization, how many egg rolls will Katy sell?

A: This can be defined as a concept that shows the cost incurred in the production process of a…

Q: A firm sells a product in a purely competitive market. The marginal cost of the product at the…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and…

A: TC = 2200 + 480q + 20q2 Qd = 190 – 2P MC = dTC/dQ = 480 + 40q AC = TC/q = 2200/q + 480 + 20q…

Q: TC (q) = 468q+50q² P-1300-2Q MC (q) = 468 +100q MR = 1100 The functions below can pertain to a…

A: In a perfectly competitive market, The firm will produce where Price is equal to the Marginal cost.…

Q: Consider a perfectly competitive firm choosing a profit-maximizing level of output. However, there…

A: C = 10 + 2Q + 4Q2 60% market price is $42 40% market price is $22 MC = 2 + 8Q

Q: Q1 A firm is facing the following cost function C(Q) = AQ5/4 where A is a positive constant and Q is…

A: Profit maximization is the condition which is pursued by all firms and producers of goods and…

Q: A firm faces the following average revenue (demand) curve: P(Q) = 240 - 0.04 Q where Q is the weekly…

A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.

Q: TC = 0.1q², where q is the restaurant's weekly production of "dish of the day". b) Show that the…

A: The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It…

Q: The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number o…

A: Given: Cost per unit of producing a product is 60 + 0.2x dollars. x is no: of units produced per…

Q: When a competitive firm sees losses because the product price falls below the minimum average cost…

A: Economies of scale refer to the cost advantages that an organization or business entity can achieve…

Q: competitive firm has the short-run cost function C(y) = 12y3−8y2+30y+12. At what price will the…

Q: Suppose the profit maximizing firm sells the same good in two individual markets that it is able to…

A: There are two separate markets, market 1 has demand equation P1 =25-2Q1and market 2's demand…

Q: Assume a competitive firm faces a market price of $60, and a cost curve of: C=0.003q³+50q+750. The…

A: In a competitive market , A firm will maximize profit where P = MC P is the market price MC is…

Q: 2. Mr Gieves and Mr Hawkes produce items of clothing. The market demand for clothes is y = 13-p with…

A: Cournot market is a type of oligopoly market,where there are two or more firms simultaneously choose…

Q: A competitive firm has a single factory with the cost function C(q) = 3q2 + 62 and produces 25 units…

A: Marginal Cost is the amount of money that firms or producers of a good incurs or spends on the…

Q: A firm's short-run cost function is given by: C(q) = 50+10q-6q2+q3

A: Answer: Given that: A firm's short-run cost function is given by: C(q) = 50+10q-6q2+q3…

Q: The cost function of competitive firm is TC = 20 + 5Q2. The product's market price is 30 AZN. Please…

A: Let Q is unit of output produced. Product price is 30 per unit. ----------------- Total revenue =…

Q: In the market of a homogeneous product, two companies, A and B, produce with same technology. The…

A: Introduction We have given a market for homogeneous product. 1) Suppose both companies will choose…

Q: A typical perfectly competitive firm faces market demand and supply given by Q, = 1000 - 20P and Q,…

A: Since you have posted multiple parts questions, we will solve the first three for you. If you want…

Q: d) Solve numerically for quantity produced and labor and capital demanded when v = 1, w = 1. e) What…

A: In economics, a CF {"cost function"} is described as a function of an output quantity and P {prices}…

Q: Assume a competitive firm faces a market price of $100, a cost curve of: C= 1.00g + 25g + 1,600 and…

A: Given:- Price=$100 C=1.00q2+25q+1600 To calculate:- Production to maximize per unit profit=?…

Q: A firm has revenue given by and its cost function is R(q) = 3409-3q² C(q) = 600 + 10q. What is the…

A: Profit maximization is the short run or long run process by which a firm may determine the price,…

Q: Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q, and market…

A: Since you have asked multiple part question, we will solve first three parts for you if you want…

Q: Determining Rent in a Market with Low-Cost and High-Cost Firms Suppose firms in a competitive market…

A: The competitive market is the one where there are infinite buyers and sellers who produces…

Q: A perfectly competitive firm has the following total cost schedule: TC = 0.10² +40. Market demand is…

A: Perfect competitive market:In this market, there are large numbers of buyers and sellers. They sell…

Q: average total cost

A: Market demand encompasses the total quantity of a good or service that consumers in a specific…

Q: A firm in a perfectly competitive market has the following cost function: c(q) = 8q2 + 228. If the…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: 3-) Use the following information to answer the questions below: The Kentucky Coal Company sells its…

A: Fixed cost is that part of the total cost which is constant and does not change with respect to any…

Q: In a market with n firms, the lifetime profit level per firm is 200/n. The fixed cost to enter the…

A: Given, lifetime profit level = 200/n Fixed cost, F = 45

Q: ***If the demand function is: P+ 2Q = 50 %3D The fixed cost is 30, the variable cost per unit is: Q…

A: The demand function is P + 2Q = 50 i.e. P = 50 - 2Q The variable cost per unit is Q + 3; i.e. the…

Q: (a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300eº1Q+2 TC= 3000…

A: The marginal cost (MC) is the incremental cost incurred when the firm produces one additional good…

Q: A competitive company will maximize profits or minimize losses in the short term by generating…

A: A perfectly competitive firm has a horizontal demand curve wherein MR= P Given this, the profit…

Q: Case Scenario/ Real World is television production company that manufactures movies. The market…

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

Question

Consider a competitive firm with costs of C(q) = 64
4q2. If price is $40, what is the quantity the firm
+
will supply, and what are its profits?
Group of answer choices
q = 4, T = 0
None of the other answers is correct.
q = 5, T = 36
%3D
q = 0, t = 0
q = 5, n = 100
%D

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

Each firm in a perfectly competetive market has a long-run total cost of LRTC = 100g – 10q + 100. The market demand is Q* = 2150 – 5P. At the long-run equilibrium price, how many firms will there be in the market? (а) 500 (b) 1,000 (c) 1,200 (d) 2,000 (e) 2,400
Suppose a large of firms have cost function C(q ) = = 72+ 4q+2q 2 and the market demand Q_{D = 712 4p What is equilibrium and the long-run number of firms? (a) Q = 600 and N = 100 (b) Q 688 and V100 (c) Q = 600 and N = = 688 and N = 115 (e) None of the above 115 (d) Q
A competitive firm faces the following market price: P=200. Variable costs are CQ)=Q^2. The firm also pays $17000 in costs that do not depend on production (even if q=0). Hint - marginal cost is MC(Q)=2*Q NOTE - KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED IN MULTIPLE QUESTIONS What is the optimal quantity this firm should produce? 200 100 50
The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space). Quantity Average Cost Total Cost Total Revenue 0 -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70 The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible? Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…
The Jones are small farmers in the wheat industry – they are price takers. Their cost function is: TC = 600,000 + 3,000Q + Q2 and MC = 3,000 + 2Q. The market price is $5,000 per ton. Assuming the Jones are maximizing profits (or minimizing loses), how much profit are they making? You must show your work.
Under which circumstances would a firm generally be able to cut production and increase profits at the margin? MR is less than MC at the currently planned scale of production MR is geater than MC at the currently planned scale of production none of the other answer choices are correct MR is equal to MC at the currently planned scale of production
Determining the Effect of Taxes on a Market Suppose all firms in a constant cost industry have identical costs of C(q)=5q²+6q+20. The market demand is Qo=256 – 2p. (a) Find the long-run equilibrium: Q*, q*, p*, and N*. (b) Suppose the government restricts the market to 41 firms. To do so, firms are required to get i permit to operate, but only 41 permits are issued in total. Find the equilibrium price and quantity. (c) Suppose instead of permits, the government simply charges all firms a fixed fee to operate of F=60. What is the resulting equilibrium price, quantity, and number of firms?
A small tie shop finds that at a sales level of x ties per day its marginal profit is MP(x) dollars per tie, where MP(x)=1.40 +0.02x -0.0006x². Also, the shop will lose $75 per day at a sales level of x = 0. Find the profit from operating the shop at a sales level of x ties per day. P(x)=
Consider a competitive market, dispersed among hundreds of companies. The Total Cost Curve of these firms is given by: CT = 5,000+2q² -400q. Assuming the market price is $800.00 per unit of product, ask: a) What is the quantity capable of maximizing the profit of competitive companies? b) What can we say about this market, in terms of its long-term equilibrium? c) Graphically sketch the results of questions (a) and (b).
A competitive firm faces the following market price: P=200. Variable costs are C(Q)=Q^2. The firm also pays $17000 in costs that do not depend on production (even if q=0). Hint – marginal cost is MC(Q)=2*Q NOTE - KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED IN MULTIPLE QUESTIONS What is the optimal quantity this firm should produce? Question 6 options: 0 50 200 100
answer D, E, F Do not provide hand written solution