1.
Output |
Total Cost |
TR |
Profit |
ATC |
0 |
25 |
0 |
-25 |
|
1 |
35 |
30 |
-5 |
35.00 |
2 |
50 |
60 |
10 |
25.00 |
3 |
70 |
90 |
20 |
23.33 |
4 |
95 |
120 |
25 |
23.75 |
5 |
122 |
150 |
28 |
24.40 |
6 |
160 |
180 |
20 |
26.67 |
7 |
200 |
210 |
10 |
28.57 |
For the market price of $30, 5 tons of carrots would produced because of maximum profit
2)
Output |
Total Cost |
TR |
Profit |
0 |
25 |
0 |
-25 |
1 |
35 |
39 |
4 |
2 |
50 |
78 |
28 |
3 |
70 |
117 |
47 |
4 |
95 |
156 |
61 |
5 |
122 |
195 |
73 |
6 |
160 |
234 |
74 |
7 |
200 |
273 |
73 |
At a price of $39, 6 tons would be produced as the profit is maximum
3.
Because of positive profit, many new producers enter to gain the profit share
4. In long run the price would be of minimum average total cost which is $ 23.33
Short-Kun local action Quantity Produced 0 Total Cost in dollars) 29 38 م ده دا | ها 53 _ 95 6. The table above gives the short-run total cost functie al cost function for a typical firm in a perfectly competitive industry. (a) What is the dollar value of the firm's total fixed cost? (b) Calculate the marginal cost of producing the fourth unit of output (c) If the price the firm receives for its product is $20, indicate the...
Use the following to answer questions 23-25: Figure: Determining Long-Run Adjustments ATC AVC Price and Cost (S) 11 ! AFC 9 12 14 Output 23. (Figure: Determining Long-Run Adjustments) The figure depicts the cost curves for a firm in a perfectly competitive industry in the long run. If the market price is $36, how many units of output should this firm produce? A) 0 B) 9 C) 12 D) 14 24. (Figure: Determining Long-Run Adjustments) If the current price is...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
The canola oil industry is perfectly competitive. Every producer has the following total cost function: LTC = 2Q3 – 15Q2 + 40Q, where Q is measured in tons of canola oil. The corresponding marginal cost function is given by LMC = 6Q2 – 30Q + 40. a. In long-run equilibrium, how much will each firm produce? b. What is the long-run equilibrium price? c. Suppose that the market demand for canola oil is given by Q = 999 – 0.25P....
3) Perfect Competition (5 points) The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive.For each market price given below, give the profit-maximizing output level and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. a. If the market price is $22... i. what...
2. Table 4 below shows the total output, total revenue, total variable cost, and total fixed cost of a perfectly competitive firm. The market equilibrium price is not given explicitly but can be deduced from Table 4. Output lulewin Total revenue $1,500 $2,000 $3,000 $4,000 $5,000 Total variable cost $1,500 $2,000 $2,600 $3,900 $5,000 Total fixed cost $500 $500 $500 $500 $500 a. What level of output should the firm produce? Show your work. (15 points) b. Should it shut...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5+2q+9. The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?
19. Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, the firm's average fixed cost is $6 and its average total cost is $10. The price of the product is $8. In order to maximize profit, the competitive firm should: a. shut down b. produce 100 units c. produce more than 100 units d. produce less than 100 units e. indeterminate 20. If the entry of new firms into a perfectly competitive...
Q1: The following graph shows the current short-run average total cost (ATC), short-run marginal cost (MC), and long-run average cost (LATC) curves of a typical perfectly competitive firm that uses only labour and physical capital to produce its product and the current market price (PⓇ). S/unit MC ATC LATC B Pa E Q1 Q2 Quantity a) How many units of output would the firm choose to produce in the short run? Explain. b) Is the firm making an economic profit...
a.Suppose the total cost for various levels of output for a competitive firm are given in the table below: Q TC 0 10 1 12 2 15 3 19 4 24 5 30 6 37 7 46 8 55 9 65 If the market price is $8, how many units should the firm produce to maximize profit? 6 8 5 7 b, A firm in a competitive market has the following cost structure: Output Total Cost 0 $5 1 $10...