2) A perfectly competitive market has demand given by Qp = 4850 – 70P. There are four firms in this market, and each firm has a different cost structure as shown below: TC (q) = 5000 + 4q + 0.02q2 MC(q) = 4+0.04q Client 9 & Co. TC(q) = 6000 + q + 0.025q? MC(q) = 1+ 0.05q BTVS Inc The Fred Firm TC(q) = 5000 + 29 + 0.02q? MC(q) = 2 + 0.04q TC(q) = 15000 + 5q + 0.005q? MC(q) = 5 + 0.01q OTT (a) What is the market price and market quantity? Hint: Start by determining the individual supply for each firm, and then add them to get the market supply (b) How many units does each firm produce, and how much profit does cach firm make? (c) In the long-run competitive equilibrium, what is the market price and market quantity? (d) In the long-run competitive equilibrium, how many units does cach firm produce, and how much profit does cach firm make?

2) A perfectly competitive market has demand given by Qp = 4850 – 70P. There are four firms in this market, and each firm has a different cost structure as shown below: TC (q) = 5000 + 4q + 0.02q2 MC(q) = 4+0.04q Client 9 & Co. TC(q) = 6000 + q + 0.025q? MC(q) = 1+ 0.05q BTVS Inc The Fred Firm TC(q) = 5000 + 29 + 0.02q? MC(q) = 2 + 0.04q TC(q) = 15000 + 5q + 0.005q? MC(q) = 5 + 0.01q OTT (a) What is the market price and market quantity? Hint: Start by determining the individual supply for each firm, and then add them to get the market supply (b) How many units does each firm produce, and how much profit does cach firm make? (c) In the long-run competitive equilibrium, what is the market price and market quantity? (d) In the long-run competitive equilibrium, how many units does cach firm produce, and how much profit does cach firm make?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and…

A: Given, Total cost (TC) = 500 + 10Q + 5Q2 Market demand Qd = 105 - (1/2)P Here, Q is the Quantity…

Q: A price-taking firm in a competitive industry of a good that is continuously divisible (like sand)…

A: The profit maximization problem for a price-taking firm involves finding the quantity that maximizes…

Q: A grape grower with a vineyard in the Edna Valley and in the Carneros appellation in Sonoma/Napa has…

A: According to the equimarginal principle, customers will choose a mix of commodities that maximize…

Q: Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and…

A: TC = 2200 + 480q + 20q2 Qd = 190 – 2P MC = dTC/dQ = 480 + 40q AC = TC/q = 2200/q + 480 + 20q…

Q: A firm faces the following average revenue (demand) curve: P(Q) = 240 - 0.04 Q where Q is the weekly…

A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.

Q: Assume a competitive firm faces a market price of $70, a cost curve of! C=0.002q + 30q + 750, MC =…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: A company manufactures a smartphones which sell for $r and y portable speakers which sell for $s.…

A: A company manufactures x smartphones and y portable speakers.Price of smartphone is $r and price of…

Q: The market demand function for the output in this market is given by: Q = 1848 - 2P If there are…

A: JointJuice is a prepackages supplement-producing firm. Suppose the firm produces prepackaged…

Q: Calculate JointJuice’s optimal output level and profits if the market price for the product stays…

A: A perfectly competitive firm is a market system in which several small firms produce similar…

Q: The inverse demand for shampoo is P = 30 – 0.03Q, where P is the price per bottle in dollars and Q…

A: Step 1:Inverse demand refers to the relationship between the price of a good or service and the…

Q: The demand equation for handcrafted violins by a certain violin maker can be approximated by p=20-x…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…

A: Given, Demand function: P=1,000−0.0025QP=1,000-0.0025Q Fixed cost = $1,000,000 Variable cost = $200…

Q: Consider a firm in a competitive industry . The firm's average cost curve and marginal cost curve…

A: In the above diagram, the firm in a competitive industry produces output at a point where the…

Q: 4/ Suppose that the total cost of a firm TC(Q) function =: TC(Q) = 75Q + 800 And the demand function…

A: Quantity is denoted by Q and price is denoted by P. Profit = Revenue - Cost Revenue = Price per unit…

Q: You've researched and found that most firms in the market currently experience costs such that TC =…

A: a. Plugging the market equilibrium quantity into the firm total cost function results in huge costs…

Q: Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x…

A: The cost function represents the total cost of production a firm incurs at different output levels.…

Q: A large number of firms enter the Swedish market for the game Padel. For simplicity assume that they…

A: Free entry of firms in a perfectly competitive market shifts the market supply curve to the right…

Q: The demand for home firm product is given by the inverse demand function: P = 120 −QD. The company’s…

A: In this question we are given with inverse demand function: P = 120 −QD, company's costs are, TC=…

Question

2) A perfectly competitive market has demand given by Qp
market, and cach firm has a different cost structure as shown below:
4850-70P.There are four firms in this
TC (q) = 5000 + 4q + 0.02q?
MC(q) = 4+ 0.04q
Client 9 & Co.
TC(q)
= ?
MC(q) = 1+0.05q
BTVS Inc
6000 +q + 0.025q
TC(q) = 5000 + 2q + 0.02q?
MC(q) = 2+ 0.04q
The Fred Firm
TC (q) = 15000 + 5q + 0.005q2
MC(q) = 5+0.01q
OTT
(a) What is the market price and market quantity?
Hint: Start by determining the individual supply for each firm, and then add them to get the
market supply
(b) How many units does cach firm produce, and how much profit does each firm make?
(c) In the long-run competitive equilibrium, what is the market price and market quantity?
(d) In the long-run competitive equilibrium, how many units docs cach firm produce, and how much profit
docs cach firm make?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The cost, in dollars, to produce x designer dog leashes is C(x) R(x) 7x + 10, and the revenue function, in dollars, is - 3x? + 55x - Find the profit function. P(x) = -322 + 48x – 10 Find the number of leashes which need to be sold to maximize the profit. 8. Select an answer Find the maximum profit. 182 Select an answer > Find the price to charge per leash to maximize profit. Select an answer > V Select an answer What would be the be much for a leash? dogs too much money for a lea leashes dollars
2. A firm has a cost function of C = 1000+20Q + 1/10Q2 and has a demand function as shown in the graph below: 100 90 80 70 70 60 60 50 40 30 20 10 0 10 20 30 40 50 60 70 80 90 100 Quantity (Q) -P (demand) a) Estimate the firm's demand function. You may assume that the slope is a whole number, and the intercept is a multiple of 10. (1 mark) b) Find the firm's revenue function. You do not need to draw it. (2 marks) c) Find the marginal revenue function, and draw it on a copy of the graph. (3 marks) d) Find and draw the marginal cost function. (3 marks) e) Use your results from parts (c) and (d) to find the profit-maximising level of output. (3 marks) f) Find the market price at this level of output. (2 marks)
Consider a computer hardware production firm with total cost function TC = 2200+480Q+20Q2, and market demand function Qd = 190 – 2P; Q is output and P is market price. (a) Determine the firm’s Total Cost when it produces 120 units of output. (b) Determine the firm’s Marginal Cost when it produces 120 units of output. (c) Determine the firm’s Average Cost when it produces 120 units of output. (d) Find the market price of the firm’s output when it sells 120 units of output. (e) Determine whether the firm makes profit, or loss, at 120 units of output.
Each firm in a perfectly competetive market has a long-run total cost of LRTC = 100g – 10q + 100. The market demand is Q* = 2150 – 5P. At the long-run equilibrium price, how many firms will there be in the market? (а) 500 (b) 1,000 (c) 1,200 (d) 2,000 (e) 2,400
3. Gazelle Corp, a sports shoe firm, is currently selling 800 pairs of a certain shoe per month. It is currently charging a price of £40, but this has recently been reduced from £45, because sales were only reaching 750 units per month. Its total costs are £28,000 per month, and these have risen £1500 due to the increase in sales. a) Derive the cost and demand functions for the firm, assuming these are both linear. b) Calculate the price elasticity of demand at the current price. c) Comment on the firm's existing strategy in terms of profit maximization, without doing any calculations. d) Calculate the profit-maximizing price and output. e) Calculate the amount of profit that the firm is currently foregoing.
Suppose a large of firms have cost function C(q ) = = 72+ 4q+2q 2 and the market demand Q_{D = 712 4p What is equilibrium and the long-run number of firms? (a) Q = 600 and N = 100 (b) Q 688 and V100 (c) Q = 600 and N = = 688 and N = 115 (e) None of the above 115 (d) Q
The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space). Quantity Average Cost Total Cost Total Revenue 0 -- 0 $0 1 $15 15 $10 2 $9 18 $20 3 $8 24 $30 4 $8.50 34 $40 5 $9 45 $50 6 $10 60 $60 7 $12 84 $70 The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible? Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…
The Jones are small farmers in the wheat industry – they are price takers. Their cost function is: TC = 600,000 + 3,000Q + Q2 and MC = 3,000 + 2Q. The market price is $5,000 per ton. Assuming the Jones are maximizing profits (or minimizing loses), how much profit are they making? You must show your work.
Natural-ExP is a unique company that is dedicated to making day trips to the Nevado de Toluca. The service includes transportation, food and guide service. Being the number of tickets sold, if the cost function of serving a new customer is Cmg = 20q, the marginal revenue function Img = 600−40q and the demand is q = (600 − p) /20. Under this scenario, what is the price of the excursion. $400 $600 $300 $100
A firm faces the following average revenue (demand) curve: P = 100 - 0.01Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 30,000. Assuming the firm maximizes profits, the firm's level of production is price in cents is and total profit per week in dollars is (please put your answer for price, quantity and profit in numerical values without any dollar sign, comma or decimal place). If the government decides to levy a tax of 10 cents per unit on this product, the new level of production is the price received by the monopolists after tax in cents is and total profit per week in dollars is the price facing the consumer after the imposition of the tax in cents is (please put your answer for price, quantity and profit in numerical values without any dollar sign, comma or decimal place).
and the cost function of the second firm is , where are all positive parameters. The demand function in this industry is where α C(q₁) = A * qu C(92) = Bq₂ (A, B, a, ß) Q = Dp (D,y)
A manufacturer of mountain bikes has the following marginal cost function: C′(q)=700/0.5q+2 where qq is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $3200, find the total cost to produce 35 bicycles.Answer: $ b) If the bikes are sold for $250 each, what is the profit (or loss) on the first 35 bikes?Answer: $ c) What is the marginal profit on bike number 36?Answer: $