Question

In: Economics

Assume that a firm in perfectly competitive industry has the following total cost schedule: Q TC...

Assume that a firm in perfectly competitive industry has the following total cost schedule:

Q

TC

10

110

15

150

20

180

25

225

30

300

35

385

40

480
  1. Calculate the marginal cost and average cost schedule for the firm.
  2. If the prevailing market price is $17 per unit, how many units will be produced and sold?  What at the profits per unit? What are the total profits?
  3. Is the industry in long-run equilibrium at this price?

Solutions

Expert Solution

Rahul Sunny answered 3 years ago
Next > < Previous

Related Solutions

In a perfectly competitive industry, each firm has a total cost function of TC = 400...
In a perfectly competitive industry, each firm has a total cost function of TC = 400 + 10q + q2 and a marginal cost curve of MC = 10 + 2q if it produces a positive quantity of output q. If a firm produces zero output it has no costs. The market price is $50. Which statement is true?] a. Each firm produces 20 units of output; the industry will require entry to reach its long-run equilibrium. b. Each firm...
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...
Q1. Assume a perfectly competitive firm's total cost (TC) for differents levels of oututes Q is...
Q1. Assume a perfectly competitive firm's total cost (TC) for differents levels of oututes Q is given by: Q TC 0 50 1 100 2 140 3 170 4 190 5 210 6 230 7 260 8 300 9 350 10 410 In the table format for the range of output (Q) provided determine: average total costs, average fixed cost, average variable costs, and marginal costs. At a price of $35 how many units will be produced in the short...
A firm produces a product in a competitive industry and has a total cost function TC...
A firm produces a product in a competitive industry and has a total cost function TC = 50 + 4Q +2Q² and MC = 4 + 4Q. At the given market price of $20, the firm is producing 5 units of output. Is the firm maximizing profit ? What quantity of output should the firm produce in the long run?
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...
A firm in a perfectly competitive market has the following cost curve: TC = 200 +...
A firm in a perfectly competitive market has the following cost curve: TC = 200 + Q + 2Q^2 and The market demand is: Qd = 121 - P. There are 20 identical firms in the market (N =20) in the short-run. e) At the equilibrium price found in part (c), how much profit is each firm making in the short-run? Will there be entry or exit in this market in the long-run? f) What is the price of the...
A firm in a perfectly competitive market has the following cost curve: TC = 200 +...
A firm in a perfectly competitive market has the following cost curve: TC = 200 + Q + 2Q^2 and The market demand is: Qd = 121 - P. There are 20 identical firms in the market (N =20) in the short-run. What is the price of the product in the long-run?
A firm has the following relationship between output (Q) and total cost (TC): Q TC 0...
A firm has the following relationship between output (Q) and total cost (TC): Q TC 0 $100 1 110 2 130 3 160 4 200 5 250 6 310 7 380 8 460 9 550 10 650 Say the firm is a perfect competitor. If the market price for its product is $ 60, at what output level will this firm produce at (as a profit maximizer)? At the output level in (a), are firms in this industry making a...
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...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2 q^2 Marginal Cost: MC= q where qq is an individual firm's quantity produced. The market demand curve for this product is Demand QD=160−4PQD=160−4P where PP is the price and QQ is the total quantity of the good. Each firm's fixed cost is $_____ What is each firm's variable cost? q 50+1/2 q 1/2q 1/2q^2 Which of the following represents the equation for each firm's...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT