If a perfectly competitive firm which produces two commodities, has the cost functionC = 2Q + 2Q3where Q1 and Q2 denote the production level of commodity 1 and commodity 2respectively.(Note: There are 3 questions in the test regarding the information given above)If the prices of commodities are P and P2 respectively, find the optimal levels ofoutput that the firm should produce to maximize its profitLütfen birini seçin:O a. Qi = 1/6P, and Q; = 1/6P,%3DO b. Q; = 1/4P and Q; = 1/6P2O c. Q; = 1/6P and Q; = 1/4P2|O d. Q; = 1/4Pi and Q; = 1/4P2

A perfectly competitive market is one where firms have no option to set their product price as they…

Answered: If a perfectly competitive firm which…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
A firm’s production function is Q = 10 + 30L - .5L2+ 30K – K2, and its competitive demand function is PQ= MRQ = d = $40. The prices of L and K are PL = $6 and PK= $12. Suppose K is fixed at K =10. Use Excel Solver to find the profit-maximizing quantity (Q). A. 660. B. 684. C. 764. D. 788. E. 864.
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Solve...
If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q² + 2Q? where Q1 and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P2 respectively, find the optimal levels of output that the firm should produce to maximize its profit O a. Q 1/4P and Q b. Q; 1/6P and Q = 1/4P2 Oc. Q; =1/6P and Q; = 1/6P2 O d. Qi 1/4P, and Q = 1/6P, ; = 1/4P,
Given that a perfectly competitive firm incurs TC=200+Q2-40Q and market demand is equal to P=3000-10Qd and market supply is equal to P=1000+4Qs where Qd and Qs are quantity demand and quantity supply respectively .Then a) What is the profit maximizing level of output,equilibrium level of price and MR of the firm b) What is the maximum profit at equilibrium level and Draw the graph showing the equilibrium level c) Is the firm at short run or long run? How do you know
Ma3. Please give only typed answer.
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Please slove the attached qustion
Imagine a perfectly competitive wood industry composed of 240 identical firms. The production output, q for each firm is determined by the function 9 = K1/2* L¹1/2, where K represents capital and L stands for labor. The $25 and PL prices for capital and labor are PK = $4, respectively. With labor fixed at 25 units, and the market demand described by Qd = 260 2P, what would be the economic profit or loss at equilibrium for these firms? -98 -99 99 98 = =
Jessy is the manager of a watch company that is consider under perfectly competitive firm. The cost of producing watches is given by C = 300 + 3Q2, where Q is the level of output and C is total cost. If the price of watches is P54, how many watches should Jessy produce to maximize profit? Does the firm profit? Should it shut down in the short run? Explain
Please give me proper calculation and full explanation Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate

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