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Question 10: 130 points] Answer the following questions about firms, costs, and supply (a) [10 po...
For a constant cost industry in which all firms the same cost functions, their long-run average...
For a constant cost industry in which all firms the same cost functions, their long-run average cost is minimized at $10 per unit output and 20 units (i.e. q = 20). Market demand is given by QD=DP=1,500-50P. Find the long-run market supply function Find the long-run equilibrium price (P*), market quantity (Q*), firm output (q*), number of firms (n), and each firm’s profit. The short-run total cost function associated with each firm’s long-run costs is SCq=0.5q2-10q+200. Calculate the short-run average...
Please answer the following miscellaneous questions about production and justify your answers. (a) A firm produces...
Please answer the following miscellaneous questions about production and justify your answers. (a) A firm produces identical outputs at two different plants. If the marginal cost at the first plant exceeds the marginal cost at the second plant, how can the firm reduce costs and maintain the same level of output? (b) True or false? In the long run,a firm always operates at the minimum level of average costs for the optimally sized plant to produce a given amount of...
1. An industry currently has 250 firms, each of which has fixed costs of $50 and...
1. An industry currently has 250 firms, each of which has fixed costs of $50 and average variable costs as follows: (20 points) Quantity Average Variable Cost 2 10 a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $46. How much does each firm produce? What is the total quantity supplied in the market? In the long run, firms can enter and exit the market, and...
Consider the following information about a firm’s long-run total costs (assuming that other firms could produce...
Consider the following information about a firm’s long-run total costs (assuming that other firms could produce at the same cost values): qA TC 0 0 100 2200 200 3600 300 5400 400 7600 500 10000 For each value of qA (except when qA = 0), provide the numerical value of the firm’s average total cost AC. Then, compare these AC values with the firm’s AVC (average variable cost) values at each value of qA. For any given level of qA,...
☹️??? 1. (15 pts) Suppose firm A is one of many perfectly competitive firm and it...
☹️???
1. (15 pts) Suppose firm A is one of many perfectly competitive firm and it total cost function is given as TC = 0.1q2+20q+1000 AVC = 0,19 +20 I looo 0,2q +20 0.19 +20 (a) Find firm A's total fixed cost. Find its average variable cost function. (b) Find the shut down point. Find firm A's supply function. shut Find firm A's supply function. shut down MO AVC AVO (c) If there are 100 firms whose cost functions are...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical short-run marginal cost function SMC = 5+10q (where q is the firm's level of output). If Q denotes industry output, what is the short-run market supply curve for output? a) Q = -50 + 10p if p > 5 and 0 if p 5 5 α Q = -5 + TOP p if p > 5 and 0 if p < 5 + α...
Long Answer Question (12 points) 12. Suppose that firms in a perfectly competitive market have the following cost f...
Long Answer Question (12 points) 12. Suppose that firms in a perfectly competitive market have the following cost function Output Total Cost $12 $14 $18 $24 $32 $42 554 $68 584 2. If the output sells at a price of $10 in the short run, what quantity would the firm produce in order to maximize profit? In the long run, what will be the market price? c. In the long run, what will be the profit-maximizing output of the firm?...
5. Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of...
5. Short-run supply and long-run
equilibrium
Consider the competitive market for titanium. Assume that,
regardless of how many firms are in the industry, every firm in the
industry is identical and faces the marginal cost (MC), average
total cost (ATC), and average variable cost (AVC) curves shown on
the following graph.
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd = 1000-20P (5pts) Calculate the short run equilibrium price and quantity for each firm.. b. (3pts) Suppose each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
4. (25 points) Suppose there are only two firms producing widgets. The total cost function for ea...
4. (25 points) Suppose there are only two firms producing widgets. The total cost function for each firm is identical and is given by T℃(a = 8h, where gi is the output of firmi A market research company has found that demand for widgets can be described by the inverse demand function P 200 2Q, where Q-q (a) (10 points) A firm's action in the Courot Duopoly game is to choose an output level. Draw each firm's reaction function as...
1. An industry currently has 250 firms, each of which has fixed costs of $50 and average variable costs as follows: (20 points) Quantity Average Variable Cost 2 10 a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $46. How much does each firm produce? What is the total quantity supplied in the market? In the long run, firms can enter and exit the market, and...
☹️???
1. (15 pts) Suppose firm A is one of many perfectly competitive firm and it total cost function is given as TC = 0.1q2+20q+1000 AVC = 0,19 +20 I looo 0,2q +20 0.19 +20 (a) Find firm A's total fixed cost. Find its average variable cost function. (b) Find the shut down point. Find firm A's supply function. shut Find firm A's supply function. shut down MO AVC AVO (c) If there are 100 firms whose cost functions are...
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical short-run marginal cost function SMC = 5+10q (where q is the firm's level of output). If Q denotes industry output, what is the short-run market supply curve for output? a) Q = -50 + 10p if p > 5 and 0 if p 5 5 α Q = -5 + TOP p if p > 5 and 0 if p < 5 + α...
Long Answer Question (12 points) 12. Suppose that firms in a perfectly competitive market have the following cost function Output Total Cost $12 $14 $18 $24 $32 $42 554 $68 584 2. If the output sells at a price of $10 in the short run, what quantity would the firm produce in order to maximize profit? In the long run, what will be the market price? c. In the long run, what will be the profit-maximizing output of the firm?...
5. Short-run supply and long-run
equilibrium
Consider the competitive market for titanium. Assume that,
regardless of how many firms are in the industry, every firm in the
industry is identical and faces the marginal cost (MC), average
total cost (ATC), and average variable cost (AVC) curves shown on
the following graph.
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd = 1000-20P (5pts) Calculate the short run equilibrium price and quantity for each firm.. b. (3pts) Suppose each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
4. (25 points) Suppose there are only two firms producing widgets. The total cost function for each firm is identical and is given by T℃(a = 8h, where gi is the output of firmi A market research company has found that demand for widgets can be described by the inverse demand function P 200 2Q, where Q-q (a) (10 points) A firm's action in the Courot Duopoly game is to choose an output level. Draw each firm's reaction function as...
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