Suppose the market price is equal to 10. When a firm has the following cost function...

Suppose the market price is equal to 10. When a firm has the following cost function when capital is fixed: C(q)=100+4q2. What is the firm's maximized profit level?

Expert Solution

Rahul Sunny answered 2 years ago

There are 10 firms in this market. Each firm has the following long-run cost function:

There are 10 firms in this market. Each firm has the following long-run cost function: TC = 200 + 0.5q^2 Market demand for paper is given by Qd=300-5p Suppose we are in the long run, so both labor and capital are variable.a) What is the long-run market price?b) How many firms will be in this market in the long run?c) What is each firm’s producer surplus in the long run?

A competitive firm faces a market price of $15. The firm has a total cost function...

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Suppose a firm has the following total cost function TC = 200+2q2 . If price equals...

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Suppose that a firm in a monopolistically competitive market has a cost function of TC= 100,000...

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In a homogeneous product duopoly, each firm has constant marginal cost equal to 10. The market...

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In a homogeneous product duopoly, each firm has constant marginal cost equal to 10. The market inverse...

In a homogeneous product duopoly, each firm has constant marginal cost equal to 10. The market inverse demand curve is p = 250 – 2Q where Q = q1 + q2 is the sum of the outputs of firms 1 and 2, and p is the price of the good. Marginal and average cost for each firm is 10. (a) What are the Cournot and Bertrand equilibrium quantities and prices in this market? In a two period version of the model in which each...

A firm has the following marginal cost function: MC(y) = 2y and fixed costs equal to...

A firm has the following marginal cost function: MC(y) = 2y and fixed costs equal to $ 16. If the price of y changes from $ 8 to $ 15 what is the change in the firm's profits?

Consider the following situations where the market price is not equal to the equilibrium price: Suppose...

Consider the following situations where the market price is not equal to the equilibrium price: Suppose the price of the good is set at $3. Calculate the size of the surplus or shortage. Suppose that the price of the good is set at $7. Calculate the size of the surplus or shortage.

A firm that produces shirts has a production function q=f(K,L)=KL/10, that has a cost price of...

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