Question
In: Economics
a) Zena produces fresh flowers. She faces a perfectly competitive market. The table below presents her...
a) Zena produces fresh flowers. She faces a perfectly competitive market. The table below presents her cost schedule. Complete the table by calculating marginal cost (MC).(1 mark)
|
Output(boxes) |
Total Cost(TC) |
Marginal cost(MC=∆TC/∆Q) |
|
0 |
$100 |
|
|
10 |
190 |
|
|
20 |
250 |
|
|
30 |
360 |
|
|
40 |
490 |
|
|
50 |
640 |
b) If the market price of a box of fresh flower is $13, how much output will the firm produce to maximize the profit. Calculate her profit at that level of output. Show your work
c) Draw and discuss the major differences between the demand curve faced by a firm in perfectly competitive market and a firm in monopoly market.(2 mark)
Solutions
Rahul Sunny answered 8 months agoRelated Solutions
Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT PER...
Assume that Harry Ellis produces table lamps in the
perfectly competitive table lamp market.
OUTPUT PER
WEEK
TOTAL COSTS
AFC
AVC
ATC
MC
0
$100
1
150
2
175
3
190
4
210
5
240
6
280
7
330
8
390
9
460
10
540
4.4.a Fill in the missing values in the above
table.
4.4.b Suppose the equilibrium price in the
table lamp market is $50. How many table lamps should Harry
produce, and how much profit will he make?
4.4.c If...
A firm is operating in the perfectly competitive market for gummy bears. It faces the following...
A firm is operating in the perfectly competitive market for
gummy bears. It faces the following conditions:
TC(q)=4+ (q2/16 )
MC(q)=q/8
Market Demand: D(P)=1008-200P
Please answer the following questions.
Suppose market price is currently at $2.
a) What is the profit maximizing quantity for the firm to
produce at?
b) What is the profit for the firm at the profit maximizing
quantity?
c) If all firms are identical to this firm, how many firms must
there be in the market?...
A perfectly competitive firm faces a price of $40 for the output it produces. Average Variable...
A perfectly competitive firm faces a price of $40 for the output
it produces. Average Variable Cost for the firm is equal to $30 per
unit and the firm's average fixed cost is equal to $20 per unit.
Determine if the following statement is either True or False. The
firm earns negative profits and should should shut down.
Suppose that a perfectly competitive firm faces a market price of $5 per unit, and at...
Suppose that a perfectly competitive firm faces a market price
of $5 per unit, and at this price, the upward-sloping portion of
the firm's marginal cost curve crosses its marginal revenue curve
at an output level of 1,500 units. If the firm produces 1,500
units, its average variable costs equal $5.50 per unit, and its
average fixed costs equal $0.50 per unit. What is the
firm's profit-maximizing (or loss-minimizing) output level?
nothing. (Enter your response as a whole number long dash—...
A perfectly competitive firm faces a market-determined price of $25 for its product.
A perfectly competitive firm faces a market-determined price
of $25 for its product.(1) (2) (3) (4) (5) (6) (7)QuantityTotal costAverage total costMarginal costMarginal revenueProfit margin0 1000 100 2000 200 3300 300 4800 400 7000 500 9600a. The firm’s total costs are given in the schedule above. Fill in
columns 3 and 4 for average total cost and marginal cost. b. Fill
in columns 5 and 6 for marginal revenue and profit margin. c. How
much output should the competitive firm...
12.The table below shows cost data for a firm operating in a perfectly competitive market: Price...
12.The table below shows cost data for a firm operating in a
perfectly competitive market:
Price ($ per unit)
Quantity (units)
Total cost ($)
50.00
0
10.00
50.00
1
20.00
50.00
2
27.50
50.00
3
77.50
50.00
4
147.50
50.00
5
250.00
What is the firm’s total revenue when four units are
produced?
$160
$50
$200
$40
14.If a perfectly competitive firm is earning positive profits,
then
its average total cost must be higher than the market price.
its total...
A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete...
A dairy farm faces a perfectly competitive market. It sells milk
at $6 per liter. Complete the table below to answer the following
questions.
Quantity of output (liter)
Total revenue
Marginal revenue
Total cost
Marginal cost
ATC
VC
AVC
0
3
1
5
2
8
3
12
4
17
5
23
6
30
7
38
8
47
a) Find the quantity of output that maximizes the profit for the
firm. Also calculate the profit at that level.
b) Find out...
A perfectly competitive firm faces a market-determined price of $30 for its product. Fill in columns...
A perfectly competitive firm faces a market-determined price of
$30 for its product. Fill in columns and answer the question
below.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Quantity
Total cost
Average total cost
Marginal cost
Marginal revenue
Profit margin
Total profit
0
$1,500
150
$4,000
300
$6,600
450
$9,600
600
$14,000
750
$19,200
The competitive firm should produce _____ units to maximize
profit.
A dairy farm faces a perfectly competitive market. It sells milk at $6 per liter. Complete...
A dairy farm faces a perfectly competitive market. It sells milk
at $6 per liter. Complete the table below to answer the following
questions.
Quantity of output (liter)
Total revenue
Marginal revenue
Total cost
Marginal cost
ATC
VC
AVC
0
3
1
5
2
8
3
12
4
17
5
23
6
30
7
38
8
47
a) Find the quantity of output that maximizes the profit for the
firm. Also calculate the profit at that level.
b) Find out...
The following table shows the costs that a firm faces in a perfect competitive market: Output...
The following table shows the costs that a firm faces in a
perfect competitive market:
Output
Fixed Cost
Variable Cost
Total Cost
Average Total Cost
Marginal Cost
0
0
1
40
2
100
3
170
4
250
5
360
6
580
7
920
a. Taking into account that the firm has
a fixed cost of $200, complete the table. (20 points)
b. If the market price is $340, what is
the level of output that the firm should produce in order to...
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