Question
In: Economics
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 graph the long-run market adjustment process.?
(In the long run, there is free entry into this market by firms with the same cost structure. (Again, for simplicity, assume all firms’ cost curves are the same in short run and long run)
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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...
Suppose a perfectly competitive firm has the followingtotal cost function for the short run (STC):...
Suppose a perfectly competitive firm has the following
total cost function for the short run (STC):
STC = 5,000 + 150Q – 12Q2 +
(1/3)Q3.a. Determine its profit-maximizing or
loss-minimizing output for the short run, given that the market
price of its product is $330 per unit.b. What will be the firm’s short-run profit or
loss?c. Now disregard the preceding cost function,
and suppose its long-run total cost (LTC) is
LTC = 660Q – 9Q2 + 0.05Q3i. Write...
Consider a perfectly competitive market in which each firm's short-run total cost function is C =...
Consider a perfectly competitive market in which each firm's
short-run total cost function is C = 64 + 6q + q2,
where q is the number of units of output produced.
The associated marginal cost curve is MC = 6+ 2q.
In the short run each firm is willing to supply a positive
amount of output at any price above ___.
If the market price is $30 each firm will produce ____ units in
the short-run.
Each firm earns a...
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 profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of D
$2,250 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q):
Q (Output)
TVC (Total Variable Cost
0
0.00
1
2,500
2
4,000
3
5,000
4
6,200
5
7,600
6
9,360
7
11,500
8
13,860
9
16,450
10
19,200
11
22,310
3a. How much output should the firm
produce if it can sell...
A profit-maximizing firm in a perfectly competitive market operates in the short run with total fixed...
A profit-maximizing firm in a perfectly competitive market
operates in the short run with total fixed costs of
$6,500.00 and total variable costs (TVC) as is below. The
firm can only produce integer amounts of output (Q)
Q
TVC
0
0.00
1
8,000.00
2
15,000.00
3
20,000.00
4
23,000.00
5
25,000.00
6
29,000.00
7
33,500.00
8
39,000.00
9
46,000.00
10
53,500.00
11
61,200.00
12
72,000.00
_______3. (2.5 pts.) How much output should the firm produce if
it can sell all...
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.
Cardboard boxes are produced in a perfectly competitive market. Each identical firm has a short-run total...
Cardboard boxes are produced in a perfectly competitive market.
Each identical firm has a short-run total cost curve of TC = 2Q^3 -
12Q^2 + 10Q + 20 where quantity is measured in thousands of boxes
per week. The marginal cost of production is given by MC = 6Q^2
-24Q + 10. Calculate the price below which a firm in the market
will not produce
any output (the shut-down price).
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...
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