Consider a firm in a perfectly competitive market with total costs given by ??=?3 −15?2 +100?+30 a. What is this firm's marginal cost function? Over what range of output are the firm's marginal costs decreasing? Increasing? b. Suppose that the market price is $52. What is this firm's profit-maximizing level of output? How do you know this is the profit-maximizing output? How much profit does this firm earn by producing the profit-maximizing output?

Question 35 Suppose all firms in a perfectly competitive industry have marginal cost of producing q units is MC = 8 + 16q. The industry demand curve is given by P = 488 – Q. The price of the good is $200. What is this firm’s optimal short-run quantity and how many firms produce this good in the short run?     12 units and 12 firms     48 units and 24 firms     192 units and 24 firms     12 units and 24 firms

When people living in America spend $10,000 to buy imported goods at the shopping mall, how does this affect U.S. GDP? O GDP decreases because we are buying foreign goods and not American goods. O GDP is not affected because the goods are not produced in America. O GDP increases by $10,000 because the consumers live in America. O GDP increases by an amount equal to the value added by the stores in the shopping mall. W ASUS 8 R

The equations below correspond with questions #1 - 2 below and describe the costs of a profit maximizing, perfectly competitive firm (q = output): Total Costs TC = 300 if q = 0 Total Costs TC = 400 + 10q + 2q2 if q > 0 Marginal Cost MC = 10 + 4q if q> 0 What is the greatest possible profit that this firm would earn if the market price is set at $90? a. $1800 b. $100 c. $400 d. $1400 e. none of the above

A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2where TC is total cost and Q is output level.a. Find the firm’s average total cost function. b. Find the firm’s average variable cost function. c. Find the firm’s marginal cost function. d. Given the price is $100, what is the profit-maximizing output level? e. Given the price is $100, what is the profit level? f. Over time, is there going to be entry or exit in this competitive market? Why?

A highly competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC = 10 + q, where q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a vertical distance of 10 above the horizontal axis. Given the market short-run supply curve: MC= aQ + b where Q is market output Solve for a: __1__ Solve for b: __2__ What is the price that would make 500 units forthcoming per time period? __3__

PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q Price (P) = $9 MC → Marginal Cost q→ Quantity (b) What is a Firm's Producer Surplus assuming the following? Area of Triangle = 1/2* Base * Height (c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the Short-Run given the following? AVC (q) =3+q FC = $3 AVC → Average Variable Cost FC Fixed Cost

Assume that the marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $700 and its average variable costs are $5. If the price of the product is $4 per unit and the firm produces the profit-maximizing level of output, How much profit firm will earn ?

Answer options: 0, 5, 7, 10, 15, 20, 25, Other

11