For ?(?) = ? – ?? and ?(?) = ??^?, calculate explicitly the formula for the...
For ?(?) = ? – ?? and ?(?) = ??^?, calculate explicitly the formula for the optimal output and its price. In a graph draw the MC curve, AR curve and MR curve of the firm in a Figure and indicate the optimal output and price.
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For ?(?) = ? – ?? and ?(?) = ??^?, calculate explicitly the
formula for the...
Suppose a firm’s inverse demand curve is given by P=120-.5Q and its cost equation is C=420+60Q+Q2....
Suppose a firm’s inverse demand curve is given by P=120-.5Q and its cost equation is C=420+60Q+Q2. Find the firm’s optimal quantity, price and profit (1) by using the profit and marginal profit equation and (2) by setting MR equal to MC. Also provide a graph of MR and MC. Suppose instead that the firm can sell any and all of its output at the fixed market price P=120. Find the firm’s optimal output.
Consider an industry that is competitive with N firms and has the following market demand and...
Consider an industry that is competitive with N firms and has the following market demand and supply. To start with, suppose there is no other relevant fact or issue at play. Thus, the market D and S looks as in this graph, Figure 1. a) Depict such a graph on your paper and indicate the following: Market price and output, the socially optimal output, the size of consumer surplus, and the size of producer surplus. b) Now, suppose that overnight...
For question 2, please draw the graph. 4) Suppose Microsoft computers has a cost curve equal...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Part III. Graphing the perfectly competitive model (20 points). Use one graphing paper only for the graph. Attach the...
Part III. Graphing the perfectly competitive model (20 points). Use one graphing paper only for the graph. Attach the graphing paper with this completed questionnaire upon submission. All answers should be handwritten. Given: Selling price P=60 Total cost TC = 128 +69 Q-14 Q2 +Q? 1. Average cost equation AC= 2. Marginal cost equation MC = 3. Fill in the blanks in the table. You should be able to show that at the optimum rate of output, Q*, the profit...
I have the solution, I just need to make sure that my graph is correct. 5....
I have the solution, I just need to make sure that my graph is
correct.
5. A monopolist faces the total revenue schedule TR = 4350q - 13q2 and the total cost schedule TC = 93 – 5.5 q2 + 150 q. Find it's profit-maximizing level of output. In a graph, draw its average revenue (AR), marginal revenue ( MR) and marginal cost (MC) functions and indicate the profit-maximizing level of output and price.
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point...
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal...
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal to p = 550 – 2Q. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be new price? Draw the firm's new MR and MC curves,...
Q1: a) Each of the following graphs shows a single-price monopoly’s (or a monopolistically competitive firm’s)...
Q1: a) Each of the following graphs shows a single-price
monopoly’s (or a monopolistically competitive firm’s) ATC, AVC, MC,
D, AR and MR in the short run. • label the lines and curves; •
indicate precisely the firm’s optimal level of output using the
label Q*; • indicate precisely the firm’s optimal price using the
label P*; and • indicate precisely the size of the firm’s economic
profit or economic loss if relevant when producing Q*.
b) Which short-run equilibrium...
What do a firm’s Marginal Revenue (MR) and Demand curves look like in perfect competition? Draw...
What do a firm’s Marginal Revenue (MR) and Demand curves look like in perfect competition? Draw them in a Quantity-Price/MR diagram (don’t forget to label the axes). Why do the MR and Demand curves look the way you draw? Briefly explain. Now add a Marginal Cost curve (MC) to the diagram you drew above. How is the profit-maximizing output in perfect competition determined? Mark this output as q* in the diagram. What is the price a firm in perfect competition...
How Short-run Profits or Losses Induce Entry or Exit
Assume that the market for bottles of wine is a monopolistically competitive market.For various annual production quantities, the following graph shows a typical firm's marginal cost curve (MC), average total cost curve (ATC), demand curve (average revenue - AR), and marginal revenue curve (MR) in the short run.According to the graph, a typical firm in this market is . Therefore, in the long run, firms will the market.Now assume the following graph shows a typical firm's marginal cost curve (MC),...
Consider an industry that is competitive with N firms and has the following market demand and supply. To start with, suppose there is no other relevant fact or issue at play. Thus, the market D and S looks as in this graph, Figure 1. a) Depict such a graph on your paper and indicate the following: Market price and output, the socially optimal output, the size of consumer surplus, and the size of producer surplus. b) Now, suppose that overnight...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Part III. Graphing the perfectly competitive model (20 points). Use one graphing paper only for the graph. Attach the graphing paper with this completed questionnaire upon submission. All answers should be handwritten. Given: Selling price P=60 Total cost TC = 128 +69 Q-14 Q2 +Q? 1. Average cost equation AC= 2. Marginal cost equation MC = 3. Fill in the blanks in the table. You should be able to show that at the optimum rate of output, Q*, the profit...
I have the solution, I just need to make sure that my graph is
correct.
5. A monopolist faces the total revenue schedule TR = 4350q - 13q2 and the total cost schedule TC = 93 – 5.5 q2 + 150 q. Find it's profit-maximizing level of output. In a graph, draw its average revenue (AR), marginal revenue ( MR) and marginal cost (MC) functions and indicate the profit-maximizing level of output and price.
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal to p = 550 – 2Q. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be new price? Draw the firm's new MR and MC curves,...
Q1: a) Each of the following graphs shows a single-price
monopoly’s (or a monopolistically competitive firm’s) ATC, AVC, MC,
D, AR and MR in the short run. • label the lines and curves; •
indicate precisely the firm’s optimal level of output using the
label Q*; • indicate precisely the firm’s optimal price using the
label P*; and • indicate precisely the size of the firm’s economic
profit or economic loss if relevant when producing Q*.
b) Which short-run equilibrium...
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