1. A perfectly competitive firm sells its product for $360/unit and has an average total cost...
1. A perfectly competitive firm sells its product for $360/unit and has an average total cost function given by: ATC(Q) = 1000/Q + 30 + 1.5Q.
a. What are this firm’s fixed costs? Explain.
b. Determine this firm’s profit maximizing level of output.
c. Calculate this firm’s profits.
2. A perfectly competitive firm sells its product for $200/unit and has a total cost of production given by: C(Q) = 1500 + 40Q+5Q2 .
a. What are this firm’s fixed costs? Explain.
b. Determine this firm’s profit maximizing level of output.
c. Determine this firm’s profits.
d. Should this firm shut down immediately? Explain.
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1. A perfectly competitive firm sells its product for $360/unit
and has an average total cost...
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...
I know that A) Q*=0 and firm should shut down and B) profits = -$1,000. But...
I know that A) Q*=0 and firm should
shut down and B) profits = -$1,000. But do not understand how to
get C.
PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C)
LEVEL OF OUTPUT WHERE AVC IS MINIMIZED?
3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...
A firm sells its product in a perfectly competitive market where other firms charge a price...
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm’s total costs are 20+2Q+Q2. The profit-maximizing output for your firm is: 202Q+Q2
Please explain the process to solve these A firm in a perfectly competitive industry is producing...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
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...
a is 0, b is -1000 i dotn understand the work 3. A perfectly competitive firm...
a is 0, b is -1000 i dotn understand the work
3. A perfectly competitive firm sells its product for S100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(O)-9-200+500 MC(O)-9-400+500 a. Determine this tim's profit maximizing level of output b. Determine this firm's profits At what level of output would AVC be minimized?
A perfectly competitive firm can sell it's product for $240. The cost of producing the product...
A perfectly competitive firm can sell it's product for $240. The cost of producing the product is $1500 for fixed costs and 30 + 35q2 for variable costs. What is the profit maximizing quantity? What will be the profit for this product? 5. A monopolist faces the following demand and cost functions: Q = 900 - 3P TC = 250 + 100Q + 2Q? The nrofit maximizing price and quantity. What is the profit?
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by...
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?
If a perfectly competitive firm is producing 150 units of output at a price of P=$20,...
If a perfectly competitive firm is producing 150 units of output at a price of P=$20, where the MC of the 150th unit of output is MC=$20, the ATC of the 150th unit is ATC=$10, and the AVC of the 150th unit is AVC=$8, then which of the following statements is not correct? a. The firm should shut down when the price is less or equal to $8. b. The firm is producing at the profit maximizing level of output....
Refer to the Table below. a) LexCorp is a perfectly competitive firm that sells its product...
Refer to the Table below. a) LexCorp is a perfectly competitive firm that sells its product for $5 per piece. Fill in the col- umns in the table below. Answer: (12 points) MR M C OTR TCProfit 0 0 3 -3 25 15 10 4.5 30 22 b) Use the above table to find the profit-maximizing level of LexCorp's output and its profit- maximizing price. Answer: (8 points) Profit-maximizing quantity: Profit-maximizing price:
I know that A) Q*=0 and firm should
shut down and B) profits = -$1,000. But do not understand how to
get C.
PLEASE SHOW ALL STEP-BY-STEP WORK ON HOW TO SOLVE FOR C)
LEVEL OF OUTPUT WHERE AVC IS MINIMIZED?
3. A perfectly competitive firm sells its product for $100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(Q)= -20Q +500 MC(Q) = Q2 - 40Q+500 a. Determine...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
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...
a is 0, b is -1000 i dotn understand the work
3. A perfectly competitive firm sells its product for S100/unit, has $1000 in fixed costs, and has an average variable cost function and a marginal cost function given below: AVC(O)-9-200+500 MC(O)-9-400+500 a. Determine this tim's profit maximizing level of output b. Determine this firm's profits At what level of output would AVC be minimized?
A perfectly competitive firm can sell it's product for $240. The cost of producing the product is $1500 for fixed costs and 30 + 35q2 for variable costs. What is the profit maximizing quantity? What will be the profit for this product? 5. A monopolist faces the following demand and cost functions: Q = 900 - 3P TC = 250 + 100Q + 2Q? The nrofit maximizing price and quantity. What is the profit?
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?
Refer to the Table below. a) LexCorp is a perfectly competitive firm that sells its product for $5 per piece. Fill in the col- umns in the table below. Answer: (12 points) MR M C OTR TCProfit 0 0 3 -3 25 15 10 4.5 30 22 b) Use the above table to find the profit-maximizing level of LexCorp's output and its profit- maximizing price. Answer: (8 points) Profit-maximizing quantity: Profit-maximizing price:
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