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 90 70 70 60 60 88 80 50 40 40 30 30 20 20 10 0 10 10 20 20 80 00 90 60 70 30 30 40 50 60 70 Quantity (Q) P (demand) 100

Q: Should the firm shut down in the short-run?  Explain in detail why or why not.

A: The decision to shut down a firm in the short run depends on the comparison between the price and…

Q: Find the graphs for a perfectly competitive firm. Graphs must include the following specific…

A: Perfect competition is a theoretical market structure in economics where a large number of buyers…

Q: A bookstore sells 90 textbooks at a price of $70 a book. The average total cost is $50 per textbook.…

A: Given that : Number of textbooks = 90 Price of a book = $ 70 Average total cost = $ 50

Q: micro perfect competition

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

Q: Explain the various specifications of perfect competition market.

A: Perfect competition is an idealized market structure that serves as a benchmark for analyzing other…

Q: Marginal profit is $4 and marginal revenue is $39 Calculate marginal cost

A: Given: Marginal profit=$4 Marginal revenue=$39 To find: Marginal cost

Q: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: How did you get the perfect competition values

A: Perfect competition market is that market where large number of buyers and sellers of the commodity…

Q: How does perfect competition effect the pharmaceutical industry?

A: In a market structure with perfect competition, there are numerous small enterprises that are price…

Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Why does perfect competitive market need to be maintained?

A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…

Q: In the short run, the firm should

A: A firm should produce in short run if the market price is greater than average variable cost.  And a…

Q: Why does exit occur?

A: When the firms earn less than their total cost of production, they make loss. If existing firms in…

Q: In the diagram below, profit is maximized at point ( give a short reason for the answer if possible)…

A: In economics, the profit is the net revenue received by the firm after deducting the total cost of…

Q: 74. In the video, when MC > MR, what action should the firm take to Maximize Profit. Select one: a.…

A: 74. Marginal revenue is the amount of revenue received from selling one additional unit. Marginal…

Q: When should a firm exit the market in the long run

A: Firm entry and exit refers to the process in which new companies enter a market to sell products or…

Q: T or F Competitive firms' profit eventually erodes close to zero.  Why?

A: In a competitive market,  There are large no. of buyers and sellers.  The firm produces where P =…

Q: If the firms are earning abnormal profit how will the number of firms in industry change?

A: According to the given question In Simple words we can say that the abnormal profits are the profits…

Q: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.

A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…

Q: What is a “price taker” firm?

A: The term “price taker” means who accept the existing market price of its product.