The equation for a firm’s short-run total cost is STC = 10 + 5q + 0.1q^2....
The equation for a firm’s short-run total cost is STC = 10 + 5q + 0.1q^2. Its short-run marginal cost is SMC = 5 + 0.2q. The market price is $25 per unit.
a. What is the firm’s maximum profit?
b. If all of the firm’s fixed costs are sunk, what is the equation for the firm’s short-run supply curve?
c. If all of the firm’s fixed costs are non-sunk, what is the equation for the firm’s short-run supply curve?
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The equation for a firm’s short-run total cost is STC = 10 + 5q
+ 0.1q^2....
STC = 40 + 10Q + 0.1Q^2 . SMC = 10 + 0.2Q. The market price...
STC = 40 + 10Q + 0.1Q^2 . SMC = 10 + 0.2Q. The market price is $20. a. Find the profit maximizing Q. b. Calculate the maximum profit. c. Find the average variable cost. d. In the short run, at what price will this firm close? e. Find the firm’s short run supply curve and express it as a function of price: Qs (P) = ?
A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q)...
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...
Ron's Window Washing Service is a small business that operates in the perfectly competitive residential window...
Ron's Window Washing Service is a small business that operates in the perfectly competitive residential window washing industry in Evanston, Illinois. The short-run total cost of production is STC(Q) = 40+ 100 + 0.1Q?, where Q is the number of windows washed per day. The corresponding short-run marginal cost function is SMC(q) = 10 + 0.29. The prevailing market price is $20 per window. a) How many windows should Ron wash to maximize profit? b) What is Ron's maximum daily...
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)-...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
Brice is a seller of lemonade operating in the perfectly competitive lemonade stand market Brice's short-run...
Brice is a seller of lemonade operating in the perfectly competitive lemonade stand market Brice's short-run total cost curve is given by STC(Q) = 400 2Q + 0.5Q2, where Q is the number of cups of lemonade sold per month. (a) What is the equation for the average variable cost (AVC)? (b) Assuming all fixed costs are sunk, what is the shutdown price for Brice? In this case, what is Brice's short-run supply curve? (c) Assuming $200 of the fixed...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output o...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
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.
83 Find more at www.downloadslide CHAPTER 9 PERFECTLY COMPETITIVE MARK 384 D What is Ron's short-run supply curve, assuming that all of the $40 per day fixed costs are sunk? e) What is Ron&...
83 Find more at www.downloadslide CHAPTER 9 PERFECTLY COMPETITIVE MARK 384 D What is Ron's short-run supply curve, assuming that all of the $40 per day fixed costs are sunk? e) What is Ron's short-run supply curve, assuming that if he produces zero output, he can rent or sell his fixed a) How large Explain. b) What wou Explain. c) Draw a gr firm. Label i and therefore avoid all his fixed costs? The bolt-making industry currently consists of 20...
2. In the local cabbage market, there are 5,000 producers that have identical short-run cost functions. They are: where...
2. In the local cabbage market, there are 5,000 producers that have identical short-run cost functions. They are: where q is the number of bushels produced each period. Out of the fixed cost, 50% is sunk and 50% is non-sunk. The short-run marginal cost function for each producer is: MC(q) = 0.05q. (3*2.5 = 7.5) a) If the local cabbage market is perfectly competitive, what is each cabbage producer's short-run supply curve? Derive the local market supply curve of cabbage....
5. For each of the short-run total cost functions listed below, write the corresponding expressions for...
5. For each of the short-run total cost functions listed below, write the corresponding expressions for total fixed cost (TFC), total variable cost (TVC), short-run average cost (SAC), average fixed cost (AFC), average variable cost (AVC), and short-run marginal cost (SMC). Then, for each part, draw the SAC, AFC, AVC, and SMC curves on the same graph. 2. STC =109 b. STCQ)=160+10g C. STC(Q)=100 d STC(Q)=10.10 e. STC(Q)=160+1092
Ron's Window Washing Service is a small business that operates in the perfectly competitive residential window washing industry in Evanston, Illinois. The short-run total cost of production is STC(Q) = 40+ 100 + 0.1Q?, where Q is the number of windows washed per day. The corresponding short-run marginal cost function is SMC(q) = 10 + 0.29. The prevailing market price is $20 per window. a) How many windows should Ron wash to maximize profit? b) What is Ron's maximum daily...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
Brice is a seller of lemonade operating in the perfectly competitive lemonade stand market Brice's short-run total cost curve is given by STC(Q) = 400 2Q + 0.5Q2, where Q is the number of cups of lemonade sold per month. (a) What is the equation for the average variable cost (AVC)? (b) Assuming all fixed costs are sunk, what is the shutdown price for Brice? In this case, what is Brice's short-run supply curve? (c) Assuming $200 of the fixed...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
83 Find more at www.downloadslide CHAPTER 9 PERFECTLY COMPETITIVE MARK 384 D What is Ron's short-run supply curve, assuming that all of the $40 per day fixed costs are sunk? e) What is Ron's short-run supply curve, assuming that if he produces zero output, he can rent or sell his fixed a) How large Explain. b) What wou Explain. c) Draw a gr firm. Label i and therefore avoid all his fixed costs? The bolt-making industry currently consists of 20...
5. For each of the short-run total cost functions listed below, write the corresponding expressions for total fixed cost (TFC), total variable cost (TVC), short-run average cost (SAC), average fixed cost (AFC), average variable cost (AVC), and short-run marginal cost (SMC). Then, for each part, draw the SAC, AFC, AVC, and SMC curves on the same graph. 2. STC =109 b. STCQ)=160+10g C. STC(Q)=100 d STC(Q)=10.10 e. STC(Q)=160+1092
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