Suppose a perfectly competitive firm has the short-run cost function C = 125 + q2. Use...
Suppose a perfectly competitive firm has the short-run cost function C = 125 + q2. Use the derivative formula or marginal cost to determine the firm’s output level and profit at prices of $30 and $20. At what price does the firm reach the shut-down point?
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Suppose a perfectly competitive firm has the short-run cost
function C = 125 + q2. Use...
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...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by...
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?
1. Suppose a perfectly competitive firm has a cost function described by TC = 200Q +...
1. Suppose a perfectly competitive firm has a cost function described by TC = 200Q + Q 2 + 225 Each firm’s marginal revenue is $240. a. Find the profit maximizing level of output. b. Is this a short-run or long-run situation? How do you know? c. Assuming that this firm’s total cost curve is the same as all other producers, find the long-run price for this good.
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)...
A firm operates in a perfectly competitive industry. Suppose it has a short run total cost...
A firm operates in a perfectly competitive industry. Suppose it has a short run total cost function given by TC = 1200 + 2Q + 0.03Q2. If the market price is $38, what is the firm’s profit maximizing quantity?
In the short run, a perfectly competitive firm might earn negative economic profits and then decide...
In the short run, a perfectly competitive firm might earn negative economic profits and then decide to shut down. On a graph, show this situation, using marginal revenue, marginal cost, average-total-cost, and average-variable-cost curves. Indicate the level of output at which the firm will no longer produce. Explain why your graph shows the shut down point.
Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore...
Suppose a firm has a total cost function, T C = 3/8(Q^2) − 50, and therefore marginal costs of MC = 3/4Q. Assume the market for this firm’s goods is perfectly competitive with a market price, P = 24. (a) Given the information above, is the firm in the short-run or long-run? (1 point) (b) Write down the firm’s marginal revenue equation. (1 points) (c) How many units should the firm produce if it wants to maximize profit? (3 points)...
8. In the short run, a perfectly competitive firm will shut down if it is producing...
8. In the short run, a perfectly competitive firm will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is A. Greater than average total cost. B. Less than average total cost. C. Greater than average variable cost. D. Less than average variable cost E. None of the above 10. Given your answer to Question 8, what can you say about Hanna's firm: A. It should continue operating...
If a perfectly competitive firm faces a lower wage rate in the short run, what will...
If a perfectly competitive firm faces a lower wage rate in the short run, what will happen? The firm’s short run maximum loss will fall The firm’s supply curve will shift up The firm’s shut down price will fall All of the answers are correct
2. Profit maximization. Suppose that each perfectly competitive firmi in an industry has the short-run cost...
2. Profit maximization. Suppose that each perfectly competitive firmi in an industry has the short-run cost function TC 20 +4q+, and the market price is S20. What is the profit-maximizing output level for each firm? What is the total revenue? What are the profits?
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?
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)...
8. In the short run, a perfectly competitive firm will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is A. Greater than average total cost. B. Less than average total cost. C. Greater than average variable cost. D. Less than average variable cost E. None of the above 10. Given your answer to Question 8, what can you say about Hanna's firm: A. It should continue operating...
2. Profit maximization. Suppose that each perfectly competitive firmi in an industry has the short-run cost function TC 20 +4q+, and the market price is S20. What is the profit-maximizing output level for each firm? What is the total revenue? What are the profits?
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