Consider the following cost curve for a firm in a competitive industry where the market price...
Consider the following cost curve for a firm in a competitive industry where the market price equals $200
C = 1/3q3+4q+750
What is the firm's marginal cost (MC)?
MC =
At what level of output does the firm maximize profits (minimize losses)?
Profit is maximized at __units of output. (Round your answer to two decimal places.)
What is the firm's profit maximizing price?
The profit-maximizing price is $___
In the short-run, this firm should
produce ____
.
Homework Answers
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Consider the following cost curve for a firm in a competitive
industry where the market price...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
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A firm produces a product in a competitive industry and has a total cost function (TC)...
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Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
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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?
Consider the competitive market for halogen lamps. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry.
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1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
Assume a competitive firm faces a market price of $70, a cost curve of: C = 0.0049% + 259 + 750, and marginal cost curve of: MC = 0.012q2 + 25. units, and the profit (to the nearest penny) at this The firm's profit maximizing output level (to the nearest tenth) is output level is $ . In this case, firms will . This will cause the market supply to V. This will continue until the price is equal to...
Assume a competitive firm faces a market price of $100, a cost curve of C 1.00q2 30q 1,600 and a marginal cost curve of MC 2.00q 30 The firm's profit maximizing output level is 35.00 units, the profit per unit is S-10.71, and total profit is: S-374.85. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output...
Assume a competitive firm faces a market price of $100, a cost curve of C 0-64q2 + 25q + 1,600 and a marginal cost curve of MC 1.28q 25. The firm's profit maximizing output level is 58.59 units, the profit per unit is $10.19, and total profit is: $597.03 However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produceunits. (round your answer to two decimal places)
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
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