A competitive firm has a cost function given by c(y)=2y2+98 and marginal cost of MC(y)=4y.
What is the firm's supply function?
Choose one:
A. p(y)=4y
B. y(p)=(p)/4
C. p(y)=2y2+98
D. p(y)= (p-98)/(4)
How many units will the firm supply if the price is
$32?
What if the price is $12?
What is the firm's profit when the price is
$32? $
What is profit when the price is $12? $
At what price and quantity will the firm break even?
units and a price
of $ per unit
Homework Answers
Add Answer to:
A competitive firm has a cost function given by
c(y)=2y2+98 and marginal cost of MC(y)=4y.
What...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost...
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (b) Derive the short run supply function for Jessica. Suppose p = 61. How much y...
8. Problems 2.8 Suppose that a firm has a marginal cost function given by MC(ą)1. Which...
8. Problems 2.8 Suppose that a firm has a marginal cost function given by MC(ą)1. Which of the following represent the firm's total cost function? (Hint: K is a constant of integration) Fixed costs are represented by As you may know from an earlier economics course, if a firm takes price (p) as given in its decisions then it will produce that output for which p = MC(q). Suppose the price is 15 p = 15 If the firm follows...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q)...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ . (Enter your response rounded to two decimal places.) Suppose that the average...
Let yp(y) be the C(2) inverse demand function facing a monopoly, where y++ is its rate...
Let yp(y) be the C(2) inverse demand function facing a monopoly, where y++ is its rate of output, and let yC(y) be the C(2) total cost function of the monopoly. Assume that p(y)>0, p'(y)<0, and C'(y)>0 for all y++, and that a profit maximizing rate of output exists. Total revenue is therefore given by R(y)=p(y)y. Given that question uses an inverse demand function, the elasticity of demand, namely (y), is defined as (y)= 1/p'y p(y)/y. Why is (y)<0? Prove that...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q)...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 6 +29. Assume that the market price (P) of the firm's product is $18. What level of output (q) will the firm produce? The firm will produce 6.00 units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ 36.00. (Enter your response rounded to two decimal places.) Suppose that the average...
need help with 5 and 6 Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm...
need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
A fully competitive firm has the following short-run cost function c(y)=(y)^3-8(y)^2+30y+5 a. Calculate the firm's marginal...
A fully competitive firm has the following short-run cost function c(y)=(y)^3-8(y)^2+30y+5 a. Calculate the firm's marginal cost function b. Calculate the firm's average variable cost function c. Show on a graph the marginal cost function and of the average variable cost function d. When is the average variable cost falling as output rises? When is the average variable cost rising as output rise? e. At what output does marginal cost equals average variable cost? f. At what price does the...
If the market price in a competitive market is $10, and a firm's marginal cost (MC)...
If the market price in a competitive market is $10, and a firm's marginal cost (MC) is given by MC = 0.50Q, where Q is units of output, this firm should produce 20 units of output to maximize profit. False True
1. A firm making external hard drives has a cost function c(y) = 4y + 1000....
1. A firm making external hard drives has a cost function c(y) = 4y + 1000. Its demand function is y = 200 – 0.8p. a. Calculate the profit-maximizing price and quantity. (3 points) b. The firm decides to enter the Mexican market. It determines that its demand function in Mexico is y = 40 – p. The cost function remains the same. What price should it charge in Mexico, and what quantity should it sell? (3 points) c. Would...
A firm has total cost of TC(y)=y²+1 and marginal cost of MC(y)=2y. What is the firm's...
A firm has total cost of TC(y)=y²+1 and marginal cost of MC(y)=2y. What is the firm's profit at price $8? Group of answer choices 10 0 15 neither one is correct 25
Suppose that Jessica faces the following total cost function: C(y) = 2y2 + y + 200 Note that 200 denotes the fixed cost component. Use this information in answering this part of the submission question. (a) Find the Marginal cost function, Average Cost function, Average Variable cost function and the Average fixed cost function. Once you obtain these, sketch them on the grid below. (b) Derive the short run supply function for Jessica. Suppose p = 61. How much y...
8. Problems 2.8 Suppose that a firm has a marginal cost function given by MC(ą)1. Which of the following represent the firm's total cost function? (Hint: K is a constant of integration) Fixed costs are represented by As you may know from an earlier economics course, if a firm takes price (p) as given in its decisions then it will produce that output for which p = MC(q). Suppose the price is 15 p = 15 If the firm follows...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 3 + 2q. Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ . (Enter your response rounded to two decimal places.) Suppose that the average...
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by MC(q) = 6 +29. Assume that the market price (P) of the firm's product is $18. What level of output (q) will the firm produce? The firm will produce 6.00 units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ 36.00. (Enter your response rounded to two decimal places.) Suppose that the average...
need help with 5 and 6
Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
Most questions answered within 3 hours.
-
The mean cost of domestic airfares in the United States rose to
an all-time high of...
asked 4 minutes ago -
1.Magazine Luiza is a Brazilian retail chain for consumer
electronics. The company currently has 100 stores...
asked 3 minutes ago -
What is the molarity of ZnCl2 that forms when 25.0 g of zinc
completely reacts with...
asked 4 minutes ago -
For independent X and Y, we have probability density function
for them where pdf of X...
asked 15 minutes ago -
The decomposition of SO2Cl2 is first order in SO2Cl2 and has a
rate constant of 1.42...
asked 11 minutes ago -
How do I convert from volume percent to mole percent in the
distillation lab? ethy acetate...
asked 18 minutes ago -
8. An air-plane has an effective wing surface area of 14.0 m²
that is generating the...
asked 19 minutes ago -
A railroad worker was a person who worked on setting and moving
railroad tracks. In securing...
asked 17 minutes ago -
using RECURSIVE Functions in Java, create a public static String
doubleLetters (String word)
For ex) that...
asked 24 minutes ago -
With a $16 Trillion national ebt, and projected annual budget
eficits in excess of $1 Trillion...
asked 38 minutes ago -
A machine shop owner wishes to assign each of three machinists
(labeled 1, 2, and 3)...
asked 53 minutes ago -
Regarding language development, which of the following
statements is FALSE?
Babies are able to cry from...
asked 52 minutes ago