A price-taking firm in a perfectly competitive market faces a market price of $4. The firm's...
A price-taking firm in a perfectly competitive market faces a market price of $4. The firm's marginal cost function is MC(Q) = 2 + aQ, where "a" is a positive number. As "a" increases, the firm's profit-maximizing quantity increases, decreases, or does not change?
Homework Answers
Answer
decrease
=====
the frim produces at MC=P
2+aQ=4
aQ=2
Q=2/a
the 'a' is inversely related to the quantity so an increase in 'a' decreases the quantity.
Ex
a=1
Q=2/1=2
a=2
Q=2/2=1
so the Q decreases as a increases.
Add Answer to:
A price-taking firm in a perfectly competitive market faces a
market price of $4. The firm's...
the firm faces a constant price (P) of $60 A firm in a perfectly competitive market...
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
a firm in perfectly competitive market sells all its products Q at constant price p (1)A...
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes...
Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes its positive profit in the short-run, its average total cost (ATC) and marginal cost (MC) are most likely as ATC=6 and MC=4 ATC=6 and MC=6 ATC=4 and MC=4 ATC=4 and MC=6
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is $1.50 and the cost functions are: TC(q) = 10 +.019+.19 MC(q) = .02q +.1 a) Find the profit-maximizing quantity of notebooks produced by a firm in this market. Also, calculate the profit each firm earns in the market. b) Graphically depict the firm's profit-maximization problem. This does not necessarily need to be to scale, but should accurately reflect the sign of the profit. c)...
Can you label each one please . (1)A firm in a perfectly competitive market sells all...
Can you label each one please .
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) 128+ 690-14Q + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit,...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 800 1,800 units. If the firm produces 1 comma 800 1,800 units, its average variable costs equal $ 7.00 7.00 per unit, and its average fixed costs equal $ 1.00 1.00 per unit. What is the firm's profit-maximizing (or...
A firm operating in a perfectly competitive market faces a market price of $16. Below is...
A firm operating in a perfectly competitive market faces a market price of $16. Below is some additional information on the firm: Output 50 10 Workers $67 Average Total Cost . Question 1: What is the firm's Total Revenue? $ Question 2: What is the firm's Average Revenue? $ Question 3: What is the firm's Marginal Revenue? $
Suppose the market for allergy medicine is perfectly competitive, despite the presence of only 4 firms...
Suppose the market for allergy medicine is perfectly competitive, despite the presence of only 4 firms producing and selling allergy medicine. The demand for allergy medicine is Qd = 100 - p, where Qd is the total number of allergy medicine bottles demanded in the market, measured in thousands per year, and p is the price of a bottle of allergy medicine, measured in dollars per bottle. Each firm has a total cost function of , where q is the...
Consider the figure at right, where a perfectly competitive firm faces a price of $40 The...
Consider the figure at right, where a perfectly competitive firm faces a price of $40 The profit-maximizing output is MC ATO AVC O A. 67. ??. 60. ? ?. 79. O D. 54 ? E. 30 D-MR 31 4 :34 67 79 0 10 20 30 40 50 60 70 80 90 Quantity
the
firm faces a constant price (P) of $60
A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 + 69Q - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this...
a firm in perfectly competitive market sells all its products
Q at constant price p
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is $1.50 and the cost functions are: TC(q) = 10 +.019+.19 MC(q) = .02q +.1 a) Find the profit-maximizing quantity of notebooks produced by a firm in this market. Also, calculate the profit each firm earns in the market. b) Graphically depict the firm's profit-maximization problem. This does not necessarily need to be to scale, but should accurately reflect the sign of the profit. c)...
Can you label each one please .
(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) 128+ 690-14Q + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal...
A firm operating in a perfectly competitive market faces a market price of $16. Below is some additional information on the firm: Output 50 10 Workers $67 Average Total Cost . Question 1: What is the firm's Total Revenue? $ Question 2: What is the firm's Average Revenue? $ Question 3: What is the firm's Marginal Revenue? $
Consider the figure at right, where a perfectly competitive firm faces a price of $40 The profit-maximizing output is MC ATO AVC O A. 67. ??. 60. ? ?. 79. O D. 54 ? E. 30 D-MR 31 4 :34 67 79 0 10 20 30 40 50 60 70 80 90 Quantity
Most questions answered within 3 hours.
-
HELP WITH SAS
Run the following DATA step to create a SAS data set called
ABC_CORP....
asked 7 minutes ago -
A researcher wishes to study the cumulative effects of several
combinations of HIV drugs. There are...
asked 26 minutes ago -
How
to make a simple game of whack a mole in pygame
asked 10 minutes ago -
Write a c/c++ program to read a list of students from a file and
create a...
asked 19 minutes ago -
Identify two different methods for collecting data in
qualitative research. What are the benefits and challenges...
asked 20 minutes ago -
I am suppose to have my array before the main class but I am
getting the...
asked 21 minutes ago -
Your task is to design the page table for the 32bit Pentium
microprocessor. Answer the following...
asked 28 minutes ago -
The Paradise Shoes Company has estimated its weekly TVC function
from data collected over the past...
asked 26 minutes ago -
Although Epicurus advocates pursuing pleasure for the
good life, discuss a few reasons why he does...
asked 44 minutes ago -
Problem 1: Present entries to record the selected transactions
described below:
(a)
Issued $2,790,000 of 5-year,...
asked 50 minutes ago -
Using technology to support HR activities increases:
a.
the efficiency of the administrative HR functions.
b....
asked 51 minutes ago -
1. List the features used to classify leaf
types.
2. List some characteristics that are shared...
asked 56 minutes ago