How to compute the profit of
each firm? The answer should be 737.50.
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How to compute the profit of
each firm? The answer should be 737.50.
10.3 MARGINAL REVENUE,...
b) (4 points) Graph demand, marginal revenue, marginal cost and average total cost (ATC) below. Mark...
b) (4 points) Graph demand, marginal revenue, marginal cost and
average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to
calculate it) and the endpoints to all of the curves.
c) (2 points) Given your answers above, explain which curve(s)
will shift in the long run and why.
d) (4 points) Draw the graph that represents this firm in the
long-run. Label the profit-maximizing price and quantity as P* and
Q*, respectively. No numbers are necessary, but be...
There are 100 firms in a perfectly competitive industry. Each firm has the short-run supply curve...
There are 100 firms in a perfectly competitive industry. Each firm has the short-run supply curve q = P−2 for P > 2, and q = 0 for P≤2. The market supply curve for this industry is Q =100P − 200 for P > 2 and Q = 0 for P ≤ 2. If the market price is $8, the firms in the industry will supply a total of 600 units. Total producer surplus is $____________________ (enter as integer)
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following...
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs: Total Cost: TC=50+12q2TC=50+12q2 Marginal Cost: MC=qMC=q where qq is an individual firm's quantity produced. The market demand curve for this product is: Demand QD=140?2PQD=140?2P where PP is the price and QQ is the total quantity of the good. Each firm's fixed cost is. What is each firm's variable cost? 12q212q2 qq 50+12q50+12q 12q12q Which of the following represents the equation for each firm's...
Please answer me in detail. Thank you. Market demand curve is D(P)=400-5P. The oil drilling industry consists of 60 pro...
Please answer me in detail. Thank you.
Market demand curve is D(P)=400-5P.
The oil drilling industry consists of 60 producers, all of whom have an identical short- run total cost curve, STC(Q) = 64 + 2Q2, where Q is the monthly output of a firm and $64 is the monthly fixed cost. The corresponding short-run marginal cost curve is SMC(Q) 4Q. Assume that $32 of the firm's monthly $64 fixed cost can be avoided if the firm produces zero output...
19. Assume that marginal revenue equals rising marginal cost at 100 units of output. At this...
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...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical short-run marginal cost function SMC = 5+10q (where q is the firm's level of output). If Q denotes industry output, what is the short-run market supply curve for output? a) Q = -50 + 10p if p > 5 and 0 if p 5 5 α Q = -5 + TOP p if p > 5 and 0 if p < 5 + α...
Please answer parts C,D, and E ition. This firm sells its AVC for $150. Profit TC...
Please answer parts C,D, and E
ition. This firm sells its AVC for $150. Profit TC TVC 2 .20100 240 360 60 ao 6920 120 4 30 bo ano 24 20 6 660 540 160 240 STC-40 + 10Q+0.10. SMC-10+0.2Q. The market price is $20. cla P-TC 2. a. Find the profit maximizing Q. b. Calculate the maximum profit. c. Find the average variable cost. d. In the short run, at what price will this firm close? e. Find the...
In a perfectly competitive market, a firm has the following short-run total cost function: C(q)=16+4q+q2 The...
In a perfectly competitive market, a firm has the following short-run total cost function: C(q)=16+4q+q2 The market demand is Q(p)=220-p a. Show that marginal cost curve passes through the minimum point of average cost curve. Draw a figure to show it. b. Find the firm’s individual short-run supply function. Draw it on the above figure. For the following questions, suppose that there are currently 10 identical firms in this market. c. What is the market supply curve? What are the...
cardboard boxes are produced in a perfectly competitive market. each identical firm has a short run...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
b) (4 points) Graph demand, marginal revenue, marginal cost and
average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to
calculate it) and the endpoints to all of the curves.
c) (2 points) Given your answers above, explain which curve(s)
will shift in the long run and why.
d) (4 points) Draw the graph that represents this firm in the
long-run. Label the profit-maximizing price and quantity as P* and
Q*, respectively. No numbers are necessary, but be...
Please answer me in detail. Thank you.
Market demand curve is D(P)=400-5P.
The oil drilling industry consists of 60 producers, all of whom have an identical short- run total cost curve, STC(Q) = 64 + 2Q2, where Q is the monthly output of a firm and $64 is the monthly fixed cost. The corresponding short-run marginal cost curve is SMC(Q) 4Q. Assume that $32 of the firm's monthly $64 fixed cost can be avoided if the firm produces zero output...
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...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical short-run marginal cost function SMC = 5+10q (where q is the firm's level of output). If Q denotes industry output, what is the short-run market supply curve for output? a) Q = -50 + 10p if p > 5 and 0 if p 5 5 α Q = -5 + TOP p if p > 5 and 0 if p < 5 + α...
Please answer parts C,D, and E
ition. This firm sells its AVC for $150. Profit TC TVC 2 .20100 240 360 60 ao 6920 120 4 30 bo ano 24 20 6 660 540 160 240 STC-40 + 10Q+0.10. SMC-10+0.2Q. The market price is $20. cla P-TC 2. a. Find the profit maximizing Q. b. Calculate the maximum profit. c. Find the average variable cost. d. In the short run, at what price will this firm close? e. Find the...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
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