11. Problems and Applications Q11
Suppose that each firm in a competitive industry has the following costs:
Total Cost: | TC=50+12q2TC=50+12q2 |
Marginal Cost: | MC=qMC=q |
where qq is an individual firm's quantity produced.
The market demand curve for this product is:
Demand | QD=140?2PQD=140?2P |
where PP is the price and QQ is the total quantity of the good.
Each firm's fixed cost is.
What is each firm's variable cost?
12q212q2
50+12q50+12q
12q12q
Which of the following represents the equation for each firm's average total cost?
50q50q
50+12q50+12q
50q+12q50q+12q
12q12q
Complete the following table by computing the marginal cost and average total cost for qq from 5 to 15.
q | Marginal Cost | Average Total Cost |
---|---|---|
(Units) | (Dollars) | (Dollars) |
5 | 12.50 | |
6 | 11.33 | |
7 | 10.64 | |
8 | 10.25 | |
9 | 10.06 | |
10 | 10.00 | |
11 | 10.05 | |
12 | 10.17 | |
13 | 10.35 | |
14 | 10.57 | |
15 | 10.83 |
The average total cost is at its minimum when the quantity each firm produces (qq) equals .
Which of the following represents the equation for each firm's supply curve in the short run?
50?q50?q
12q212q2
120?12q2120?12q2
In the long run, the firm will remain in the market and produce if .
Currently, there are 8 firms in the market.
In the short run, in which the number of firms is fixed, the equilibrium price isand the total quantity produced in the market isunits. Each firm producesunits. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.)
In this equilibrium, each firm makes a profit of. (Note: Enter a negative number if the firm is incurring a loss.)
Firms have an incentive to the market.
In the long run, with free entry and exit, the equilibrium price isand the total quantity produced in the market isunits. There arefirms in the market, with each firm producingunits.
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following...
11. Problems and Applications Q11Suppose that each firm in a competitive industry has the following costs:Total Cost: TC = 50 + Marginal Cost: MC = qThe market demand curve for this product is:Demand where P is the Price and Q is the total quantity of the good..What is each firm's variable cost?0.5q50+0.5qqWhich of the following represents the equation for each firm's average total cost?50q50+0.5q0.5qComplete the following table by computing the marginal cost and average total cost for qq from 5...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2 q^2 Marginal Cost: MC= q where qq is an individual firm's quantity produced. The market demand curve for this product is Demand QD=160−4PQD=160−4P where PP is the price and QQ is the total quantity of the good. Each firm's fixed cost is $_____ What is each firm's variable cost? q 50+1/2 q 1/2q 1/2q^2 Which of the following represents the equation for each firm's...
Suppose that each firm in a competitive industry has the following costs:Total Cost: TC=50+1/2 q2Marginal Cost: MC=qwhere q is an individual firm's quantity produced.The market demand curve for this product is:Demand QD=160-4 Pwhere P is the price and Q is the total quantity of the good.Each firm's fixed cost is $_______ What is each firm's variable cost?1/2 q50+1/2 q1/2 q^{2}qWhich of the following represents the equation for each firm's average total cost?50/q+1/2 q50+1/2 q50/q1/2 qComplete the following table by computing the...
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs Total Cost: TV-50 + 2 Marginal Cost: MCq where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand QD 160-4P Type here to search
2. A competitive industry has 12 identical firms, each one has a total variable cost function TVC(a) 402 and a marginal cost function MC(a) 40+q, the firm's fixed cost.s are entirely non-sunk (that is, must be paid only if q >0) and equal to 50. (a) Calculate the price below which the firm will produce q 0. (b) The market demand is QD(p) 360-2p. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's proft...
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