ZuoTi.Pro
Question

A firm sells good X in a competitive market and the market price is $140. If...

A firm sells good X in a competitive market and the market price is $140. If the firm has a fixed cost of $150 and a variable cost of 0.25X2, then what is maximum profit this firm can earn?

A. $18,000

B. $18,350

C. $18,880

D. $19,450

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

for Competitie market Propit maximization occurs at - PMC MC= 140=p 21 as Total cost = F. the to a 0.25X² + 150 TRE Pxo (TK 2dla d (-0.25 x 2 40x 150) - dx ~0.5X 1140 20 X280 Prosht at X=280 Profit = -0.25x (280)2 + 140x280 -150 y T Profit = -19600 +

0 0
Add a comment
Know the answer?
Add Answer to:
A firm sells good X in a competitive market and the market price is $140. If...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The equilibrium price at which a perfectly competitive firm sells its good is $8. The profit-maximizing...

    The equilibrium price at which a perfectly competitive firm sells its good is $8. The profit-maximizing quantity of output is 200 units. At this quantity of output, the firm has an average fixed cost of $4 and an average variable cost of $s. In the short this perfectly competitive firm should

  • 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...

  • There is an equilibrium price of $60 in a perfectly competitive market for a good that...

    There is an equilibrium price of $60 in a perfectly competitive market for a good that can be produced in continuous quantities. One firm in this market has a marginal cost of $60 at q = 15. If this firm produces q =15, it has an economic profit of -$400. Which of the following statements are true? i) if the firm has fixed costs of $300, then q =15 is the profit maximizing quantity in the short run for this...

  • A firm sells soybeans in a perfectly competitive market. Below is a table of the total...

    A firm sells soybeans in a perfectly competitive market. Below is a table of the total costs associated with different levels of quantity. If price is $10, how much will it produce? Quantity Total Cost 100 $ 200.00 120 $ 300.00 140 $ 500.00 150 $ 800.00 160 $ 1,200.00 Select one: a. 120 b. 140 c. 150 d. 160

  • the firm faces a constant price (P) of $60 A firm in a perfectly competitive market...

    the firm faces a constant price (P) of $60 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 + 69Q - 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 profit is maximized at this...

  • 1) A perfectly competitive firm sells 200 units at a market price of $40 per unit....

    1) A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should ? a) shut down b) raise the price to $45 per unit c. ​reduce output but not to zero d. ​increase output sold to 300 units e. continue to produce the present level of output

  • (1)A firm in a perfectly competitive market sells all its product (Q) at a constant price...

    (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 Q TC(Q) = 128 +690-140 (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that profit is maximized at this level of output. (b)Derive the marginal revenue (MR) and the marginal cost(MC). Graph...

  • 1. 10 pts. A farming firm sells wheat in a perfectly competitive market. The firm's total...

    1. 10 pts. A farming firm sells wheat in a perfectly competitive market. The firm's total costs are C(Q)=10Q-692 +Q3. The wheat industry is currently at its long-run equilibrium. a. How much wheat is this firm producing (what is Q*)? b. What is the market price? c. How much profit is this firm earning? d. Suppose the demand for wheat increases, which increases the market price to $10. How should this firm adapt to this price change? e. What profit...

  • a purely competitive firm finds that the market price for its product is $30 it has...

    a purely competitive firm finds that the market price for its product is $30 it has a fixed cost of $100 and a variable cost of $15 per unit for the first 50 units and then $35 per unit for all successive units. what is the average variable cost for the first 100 units? what output level will yield the largest possible profit for this purely competitive firm?

  • 2. A firm's product sells for $2 per unit in a highly competitive market. The firm...

    2. A firm's product sells for $2 per unit in a highly competitive market. The firm pro- duces output using capital (which it rents at $75 per hour) and labor (which is paid 192 Managerial Economics and Business Strategy a wage of $15 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer the questions that follow MPx AP AP VMP 0 20 120 50 2 20 150 3...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT