Question
In: Economics
A representative firm in a perfectly competitive market has a total cost function: ATC(q) = 72/q...
- A representative firm in a perfectly competitive market has a total cost function:
ATC(q) = 72/q + 4 + 2q and MC(q) = 4 + 4q.
- What is the firms fixed cost (FC) and variable cost (VC)?
- Calculate the market price at which profits would be zero.
- Calculate the profits or losses of the firms when price is $16.
- The market demand is given by Qd = 2000 – 20p. In the long run, what will the market demand be? How many firms will there be?
- Accurately draw the profit maximizing quantity, price, and any other related curves.
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
A perfectly competitive firm has a total cost function equal to: C(Q) = 20,000 + 450Q...
A perfectly competitive firm has a total cost function equal
to:
C(Q) = 20,000 + 450Q - 4Q2 +
0.01Q3
If the market price for the firm is $142 and the firm is
producing 220 units, what are their profits/losses?
Refer to the firm above.
What is the minimum market price the firm needs in order to
produce in the short-run?
Suppose you are a manager of perfectly competitive firm and at
your optimal / profit-maximizing Q, ATC = $20...
Consider a representative firm in the perfectly competitive market. This firm has the following total long-run...
Consider a representative firm in the perfectly competitive
market.
This firm has the following total long-run cost function
(C):
C = 2q^2 + 8
where q is the output quantity produced by the firm. Suppose
further that the
market demand is given as: QD = 130-P where QD is the quantity
demanded in the market and P is the output price. Find the long-run
market equilibrium price and the number of firms in the market.
Suppose in the short run a perfectly competitive firm has the total cost function: TC(Q)=675 +...
Suppose in the short run a perfectly competitive firm has the
total cost function: TC(Q)=675 + 3q2 where q is the firm's quantity
of output. If the market price is P=240, how much profit will this
firm earn if it maximizes its profit?
b) how much profit will this firm make?
c) Given your answer to b), what will happen to the market price
as we move from the short run
to the long run?
d) What is the break-even...
A perfectly competitive firm has a total revenue function of TR = 90Q and cost function...
A perfectly competitive firm has a total revenue function of TR
= 90Q and cost function of TC = 30Q2 + 50.
i. Determine the price the firm should charge and the quantity
of output that it should produce to maximize profit.
ii. if there are 20 identical firms in the market, what will be
the perfectly competitive price and total output produced?
A firm operating in a perfectly competitive market has the following total cost function: TC=0.4Q2+40 There...
A firm operating in a perfectly competitive market has the
following total cost function: TC=0.4Q2+40 There are 20
identical firms in the short-run in the market. In addition, the
demand function is given by: Q=300-5P
a) Find the Supply Function for the Firm in the
short-run
b) What is the equilibrium price and
quantity in the market in the
short-run?
c) How much does each of the 20 firms produce in the
short-run?
d) How much profits does each firm...
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
A price-taker firm has an average total cost function given by ATC = 972 / q...
A price-taker firm has an average total cost function given by
ATC = 972 / q + 5 + 3q . Calculate the price at which the firm
would zero profits.
A firm operating in a perfectly competitive market has the following total cost function: TC=0.4Q2+40. Its...
A firm operating in a perfectly competitive market has the
following total cost function: TC=0.4Q2+40. Its marginal
cost function is given by: MC=0.8Q. There are 20 identical firms in
the short-run in the market. In addition, the demand function is
given by: Q=300-5P
a) Find the Supply Function for the Firm in the
short-run
b) What is the equilibrium price and
quantity in the market in the
short-run?
c) How much does each of the 20 firms produce in the...
A perfectly competitive firm has the following (short-run) total cost function: ??(?)=?2+200 and the market demand...
A perfectly competitive firm has the following (short-run) total
cost function: ??(?)=?2+200
and the market demand for the firm’s output is given by
??(?)=300−6?.
What is the equilibrium price and how much output will be
produced by each firm in the long run?
Suppose that the market demand curve now becomes
??(?)=150−6?
. In the long run, with this reduced demand, what will be the
equilibrium market price and quantity and how many firms will be
serving the market and...
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