Suppose Q=VKL in the short-run. The firm's short-run total cost curve is +rk C) STC =...
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10. If market demand is given by QD = 1050 − 50P, how much will be produced in the market? a. 300 b. 400 c. 500 d. 600 Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10. If market demand is given by QD = 1050 − 50P, how much...
Please write essential steps and clear writing 2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business? 2. Assume that a monopolists sells...
Question 18 Suppose that a firm's long-run total cost curve can be expressed as C(Q) 100Q Based on this information, the firm's long-run marginal cost is given as: a MC 100 Ob MC 10 MC = 100Q' OdMC = 100Q
Is my answer correct? Suppose that a firm's short-run production function is F(K,L) = L+VKL, where capital is fixed at K = 4. The rental rate of capital is $24 and the wage rate is $2. The variable cost of production of 48 units of output is (Hint: The amount of labor required to produce 48 units of output is an integer.) 0 $24 0 0 0
5. A firm produces widgets with production function: q-2vKL. In the short run, the firm's amount of capital is fixed at K = 100. The rental rate is v = 1 and the wage for L is w= 4. (a) Find the firm's short-run total cost curve (SRTC), short-run average cost curve (SRAC), and the short-run marginal cost (SMC) function. (b) Graph the firm's SAC and SMC using the following levels of production: q 25 and q= 100. (c) Find...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
1. In the following graph, a firm's short run total cost curve is given as ABCD and its long run total cost curve is given as OBEF. This fimm's short run total cost curve ABCD is tangent to its long run total cost curve OBEF at point B. (a) Draw this firm's short run average cost curve and long run average cost curve. [6 marks] (b) Draw this firm's short run marginal cost curve and long run marginal cost curve....
Assume a firm's short-run total cost function is STC = (1/3)q3 – 4q2 + 22q + 100. a. Determine the output level at which it maximizes profits if p = 10. b. Is the firm earning a pure profit, normal profit or operating at a loss?
Suppose a firm's production function is Q = (KL)0.5. In the short run, this firm's capital stock is fixed at 100. Calculate the firm's short run total cost curve if w = 5 and v = 5. It can be shown (using calculus) that this firm's short run marginal costs are .1Q. In order to maximize its profits, how much would the firm choose to produce if the market price of its output was $5, $10, or $20. For each...
The equation for a firm’s short-run total cost is STC = 10 + 5q + 0.1q^2. Its short-run marginal cost is SMC = 5 + 0.2q. The market price is $25 per unit. a. What is the firm’s maximum profit? b. If all of the firm’s fixed costs are sunk, what is the equation for the firm’s short-run supply curve? c. If all of the firm’s fixed costs are non-sunk, what is the equation for the firm’s short-run supply curve?