In the long run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand price is equal to the minimum of    Question 6 options:   a)  average fixed cost for the marginal firm   b)  marginal cost of the marginal firm    c)  average total cost of the marginal firm    d)  average variable cost of the marginal firm

Consider the perfectly 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 ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves shown on the following graph

In the model of perfectly competitive markets, the market outcome is allocatively efficient because   Question 4 options:   all firms are price takers   all firms break even in the long run   the sum of consumer and producer surplus is maximized   economic profits are maximized   average total cost is minimized for each firm

You are the owner of a firm in a perfectly competitive market. The market supply and demand are given by the equations: D: P=8 - 0.1Q S: P = 0.2 + 0.05Q Your firm's marginal cost curve and total cost curve are: MC = 0.1 + 0. 2q TC = 20.425 + 0. 1q +0.1q? What is the firm's profit (positive) or loss (negative) ? O 2.2 (profit) O 18.225 (profit) O -18.225 (loss) -2.2 (loss)

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 $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$

There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $10 and the variable cost is 3q. Market demand function is given by Q=1200-70 P. Find the equilibrium price in the market. $7 $8 $12 $10

Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost function is TC=470+13q+q^2 and Marginal Cost function is MC=13+2q. Market demand is P=401-2Q.  What is the long-run equilibrium market price?

Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TC^(q) =1+2q + q² TC (g) = 6+2q + 3q? (a) Derive the short-run supply curve for each firm type (b) What is the short-run market supply, if there are 10 Type A firms, and 6 Type B firms? (c) What is total quantity produced when p=5? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that p=5 and that there are 10 Type A firms and 6 Type B firms.

The supply curves for the only two firms in a competitive industry are given by: S₁: P = 2Q1 S2: P = 2 + Q2, where Q1 is the output of firm 1 and Q2 is the output of firm 2. These two supply curves are shown in the graph below. Draw the market supply curve for this industry. Instructions: Use the tool provided to plot 4 price-quantity combinations for prices $0, $2, $4 and $6. Price Market Supply 7 S₁ S2 की 6 5 + 3 2 1 0 1 2 3 4 Quantity сл 5 10 6 7 80 Tools line tool

Assume the following inverse market demand curve given by  p = a - bQ.Marginal cost of Firm 1 is m  and that for Firm 2 is m + x and x > 0.Calculate the equilibrium quantities and market price.