Q | VC | FC | TC | MC |
0 | 0 | 30 | 30 | - |
1 | 100 | 30 | 130 | 100 |
2 | 150 | 30 | 180 | 50 |
3 | 180 | 30 | 210 | 30 |
4 | 220 | 30 | 250 | 40 |
5 | 300 | 30 | 330 | 80 |
6 | 390 | 30 | 420 | 90 |
Equilibrium condition of a competitive firm :P=MC
If P is not equal to MC then we take the nearest equality quantity.
A.At price =52,P=MC at Q=2
TC=180
TR=52*2=104
Profit=TR-TC
Profit=104-180=-76
B.At P=60,P=MC at Q=4
TC=250
TR=240
Profit=-10
C.P=70,Q=5,
TC=330
TR=350
Profit=20
D.P=85,Q=6
TC=420
TR=510
Profit=90
You are operating a firm in a perfectly competitive market. In the short run, you have...
You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table: Q TVC 0 0 1 100 2 150 3 180 4 220 5 300 6 390 Complete the following table: Market Price Profit maximizing level of output Profit $48 $60 $75 $85
You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30. Your variable costs are given in the following table: Q TVC 0 0 1 100 2 150 3 180 4 220 5 300 6 390 Complete the following table: Market Price Profit maximizing level of output Profit $48 $60 $75 $85
P10. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150. a. Complete the table. Output FC VC TC MCTR MR Profit/ Loss $100 100 100 100 100 440 100 $0 100 180 300 600 6100750 b. At what output rate does the firm maximize profit or minimize loss? c. What is the firm's marginal revenue at each positive level of output? Its average d What...
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?
4. Short-run profit maximization or loss minimization for a perfectly competitive firm Suppose that the market for cashmere sweaters is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. Profit or Loss PRICE AND COST (Dollars per sweater) 0 10 90 100 20 30 40 50 60 70 80 QUANTITY OF OUTPUT (Sweaters) In the short run, at a market price of $80 per sweater, this firm will choose to...
3. A firm in a perfectly competitive market will produce no output in the short run if the price is below $18 but will produce if the price is above $18. The smallest quantity they will produce in the short run is 8. Firms will earn 0 economic profit if the price is $74 and its profit maximizing quantity is 12 at that price. The firm’s fixed cost is $576. Assume the good can be produced in continuous quantities. Draw...
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)...
A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q) = 20 + 10Q + Q2. The market price is $10. a) What is the profit-maximizing quantity? b) What are the maximum profits? c) Find the short-run supply curve if all fixed costs are sunk. d) Find the short-run supply curve if all fixed costs are non-sunk. e) Suppose there are 100 identical firms in this market. What is the market supply curve if...
1. What type of demand curve does a perfectly competitive firm face? Why? 2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $150. Output FC VC TC TR Profit/Loss 0 $100 $ 0 ___ ___ ___ 1 100 100 ___ ___ ___ 2 100 180 ___ ___ ___ 3 100 ...
"he graph below shows a profit-maximizing perfectly competitive firm operating in the short run. Which area in the graph represents the amount the firm can save by continuing to produce in the short run rather than closing down immediately? ATC AVC MR