In the graph below, what is the price and quantity produced by the firm in a competitive market?
a. Pa & Qa |
b. Pa & Qb |
c. Pb & Qa |
d. Pc & Qb |
e. None of the above. |
Ans) the correct option is c. Pb & Qa
In a competitive market, the optimal point is at price = marginal cost.
Supply curve is the marginal cost so at a point where demand = marginal cost = supply
When price is Pb and quantity is Qa, the optimality is achieved.q
In the graph below, what is the price and quantity produced by the firm in a...
In the graph below, what is the price and quantity produced by the firm in an imperfectly competitive market? a. Pa & Qa b. Pa & Qb c. Pc & Qa d. Pd & Qc e. Pe & Qb Price MRİ Q, Quantity
The graph blow represents a negative externality in the market for oil. What is the per unit value of the externality? Р si So PA PB PC D Q QA QB PA-PB Ο Ο Ο PA-Pc PA PB-Pc O o PB The graph below represents a negative externality in the market for oil. What is the price and quantity sold in the market after the government imposes a Pigovian tax equal to the value of the externality? Р si So...
------$6 --- ------- -- Price Graph A QQ Quantity (Firm) Quantity (Market) Price Graph B Quantity (Finn) Q, Q. Quantity (Marker Refer to Exhibit 12-1. In Graph A, the market demand has increased from D, to D, and as a result: both the market price and the price of the price-taking firm have risen to $6. both the market price and the price of the price-taking firm have fallen to $5. the quantity of goods transacted in the market has...
Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and B with QA(PA, PB) and QB(PA, Pa) where Q is the demand and P is the price. If dA-0, the firm could charge the same price as a monopolist in market A which produces only good A. Explain your answer. (Answers without correct explanation will receive 0 credit.)
Bonus (5 points) True or False: Consider a monopolist which produces two interrelated goods A and...
In Little Town, there are two suppliers of mineral water: A and B. Mineral water is considered a homogenous good. Let pA and pB denote the price and qA and qB the quantity sold by firms A and B, respectively. Suppose that the municipality provides all the water for free, so firms don't bear any production cost. The inverse demand function for mineral water is given by P=12-1/3Q where Q=qA + qB denotes the aggregate supply of mineral water. Suppose...
The graph blow represents a negative externality in the market
for oil. What is the per unit value of the externality?
A. Pa-Pc
B. Pb-Pc
C. Pa
D. Pb
E. Pa-Pb
P S So PA PB PC D ад ав Q
A. Calculate and graph all points for the domestic market for washing machines price and quantity equilibrium. B. Find the domestic quantity demanded and supplied of washing machines that will result if the price imposition of $3,000 is imposed. Show on graph. Explain. C. Find the domestic quantity demanded and supplied of washing machines that will result if the S500 tariff is imposed. Show on graph. Explain. D. Compute government revenue from the tariff. 3. Illustrate graphically Suppose that a...
A firm's market demand for its product in the company’s country, a, is given by Qa(Pa) = 1,050 − 4Pa, where Qa is the quantity of products produced per year and Pa is the price product. Cost of producing this product is ?(Q) = 70,125 + 0.0125Q2. This implies a marginal cost of production of ?C(q) = 0.025Q. a) Find the profit-maximizing price and quantity. Compute the firm’s profit in this case. Should the firm shut down in the short...
1) A price-taking firm sells 2,000 units at a price of $7 each. If their AFC = $5 and their AVC = $3, how much profit will it make? Group of answer choices a profit = -2,000 b profit = 14,000 c profit = 4,000 d None of these answers e profit = 8,000 2) Assume there are 50 identical firms in a perfectly competitive (price-taking) market. Assume EACH firm has the cost structure given below. Quantity 0 1 2...
A firm produces two different goods, with demand given by the following: Pa = 100 – 3Qa + 2Qb and Pb = 105 – 8Qb Where Pa = price of good A, Pb = price of good B, Qa = quantity of good A and Qb = quantity of good B. The marginal costs for the two goods are 12 for good A and 15 for good B. Determine optimal prices and quantities for each good.