Question

In: Economics

20. Let's say a product was traded in a fully competitive market and the market price...

20. Let's say a product was traded in a fully competitive market and the market price of this product was given at 50. The total cost function C=10+2Q+3Q2 indicating the relationship between the total cost and output of this company was given. Find the profit maximization output and profit margin.

Solutions

Expert Solution

Rahul Sunny answered 8 months ago
Next > < Previous

Related Solutions

To say that a firm is competitive in the labor market is to say that the...
To say that a firm is competitive in the labor market is to say that the firm can choose a. the wage it pays its workers, but it cannot choose how many workers to hire. b. the number of workers it hires, but it cannot choose the wage it pays its workers. c. both the wage it pays its workers and the number of workers it hires. d. neither the wage it pays its workers nor the number of workers...
4. Say a firm that sells its product at a price of $20 is using20...
4. Say a firm that sells its product at a price of $20 is using 20 units of labor. If the marginal product of the last unit of labor hired was 10, and the firm pays each worker a wage of $40, then this firm shouldhire more workers.decrease the number of workers.keep the same number of workers.decrease its output.5. Economic theory supports the view that increasing the minimum wage willincrease the employment of teenagers.decrease the employment of teenagers.decrease the employment...
If there is a competitive outside market for the transferred product, then the best transfer price...
If there is a competitive outside market for the transferred product, then the best transfer price is the a.negotiated price. b.market price. c.cost-based price. d.price set by central management. e.None of these choices are correct.
The price of a product in a competitive market is $200. If the cost per unit...
The price of a product in a competitive market is $200. If the cost per unit of producing the product is 80 + 0.1x dollars, where x is the number of units produced per month, how many units should the firm produce and sell to maximize its profit?
A firm sells a product in a perfectly competitive market, at a price of $50. The...
A firm sells a product in a perfectly competitive market, at a price of $50. The firm has a fixed cost of $30. Fill in the following table and indicate the level of output that maximizes profit. How would the profit-maximizing choice of output change if the fixed cost increased from $40 to $60? More generally, explain how the level of fixed cost affects the choice of output Output Total Revenue Total Cost Profit Marginal Revenue Marginal Cost 0 1...
Let's imagine the market for imported steel. Let's say in autarky our country has an equilibrium...
Let's imagine the market for imported steel. Let's say in autarky our country has an equilibrium price of 250 dollars per ton(Pa = 250), and the equilibrium quantity of 500 per ton(Qa = 500) Let's also say that the world price is currently 200 dollars per ton(Pw = 200). At this price quantity supplied would be 400 (Qs=400) and the quantity demand would be 600(Qd = 600) a)First lets assume that home is a large country. I want you to...
A firm operates in a perfectively competitive industry. Given the market price of 20 and the...
A firm operates in a perfectively competitive industry. Given the market price of 20 and the firm’s marginal cost function MC=-8+2Q. In addition, the average variable cost is equal to the marginal cost at 15 units of output. Use the information to answer questions 14 and 15. Which of the following units of output would be chosen by the firm? 10 units 14 units 22 units 32 units Should the firm continue its business and why? Yes, because the market...
A firm operates in a perfectively competitive industry. Given the market price of 20 and the...
A firm operates in a perfectively competitive industry. Given the market price of 20 and the firm’s marginal cost function MC=-8+2Q. In addition, the average variable cost is equal to the marginal cost at 15 units of output. Use the information to answer questions 14 and 15. Which of the following units of output would be chosen by the firm? 10 units 14 units 22 units 32 units Should the firm continue its business and why? Yes, because the market...
In a perfectly competitive market, if a firm raises the price of its product from the...
In a perfectly competitive market, if a firm raises the price of its product from the prevailing market price of $179 to $199, it will likely cause the firm to reach its shutdown point immediately. will cause the firm to recover some of its opportunity costs. would likely result in a substantial loss of sales to competitors. is a sure sign the firm is raising the given price in the market.
The equilibrium price of a product which is sold in a free, open and competitive market...
The equilibrium price of a product which is sold in a free, open and competitive market is determined by the market demand and the market supply of the product. However, sometimes the current market price of the product is not at its equilibrium level. - Explain how and why the equilibrium price of the product will be reached. - Provide a simple numerical example and draw a graph in order to support your explanation.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT