3. For a particular perfectly competitive firm SRTC = 100 + 20q + q², where q is output. If themarket price is equal to 40, what is the maximum profit the firm can earn in the short run?a. $400b. $200c. $100d. $0e. -$100

A profit maximizing condition for the perfectly competitive firm is where it's marginal costs gets…

Answered: 3. For a particular perfectly…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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2. Suppose that each firm in a perfectly competitive market has a short- run total cost of TC = 75 + 500Q – 5Q²+ 0.5Q', where MC = 500 – 10Q + 1.5Q°. a. Calculate the output that minimizes the firm's AVC. b. What is the firm's shutdown price?
Inverse Demand Equation: P = 170 - 4Qd Marginal Costs=\$10; MR = 170 - 8Qd A perfectly -competitive firm would charge a price of: a . $ 20 b. $10 . c.$100 d. 0
7. There are 1,000 firms in a perfectly competitive market. Each faces the same short-run total cost function: SRTC = 50 + 10q + 5q². What is the minimum price at which a firm will stay open in the short run? a. P= $0 b. P = $5 c. P= $10 d. P = $20 e. P = $50
a. Calculate profit for each quantity. How much should the firm produce to maximize profut ? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at ) At what quantity do these curves cross? How does this relate to your answer to part (a)? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?
Do not use chatgpt.
Solve it correctly please. I will rate accordingly with 4votes.
4. The market for sugar consists of 3,500 identical, perfectly competitive firms, each with the following short-run total cost function: SRTC =1,500 + 35q². The market demand curve for sugar is Q= 11,200 -30P. What is each firm's maximum short-run profit? a. $0 b. $280 c. -$1,080 d. -$1,360 e. -$1,500
Figure 14-13 Suppose a firm in a competitive industry has the following cost curves: 10 9- 8 7. 6 اکیه 3.5 2 1- Price 1 2 3 4 MC 5 6 7 8 ATC AVC Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? ◆a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry. b. Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry. ● C. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. d. Because the price is below the firm's average variable costs, the firms will shut down. 45
The diagram at the right shows the various short-run cost curves for a perfectly competitive firm. a. Based on the diagram, and the assumption that the firm is maximizing its profit, fill in the following table. The last three columns require only a "yes" or "no". Market Firm's Is Price > Is Price > Are Price ($) Output ATC? AVC? Profits Positive? $4 $5 $7 $8 $10 Price ($) $1Q $8 $7 $5 $4 135 MC 155:170190 210 Output ATC AVC
PA PB PC 0 P D Competitive Firm MC ATC 8. With "PA," determine if this firm makes a ("positive" "negative" "zero") profit in the short run by showing the profit area geometically. 9. With "PA," the price will ("increase" "decrease" "not change") in the long run. Select the correct one. 10. In the long run, this firm eventually earns a positive" "negative" "zero") profit. Select the correct one.
6) Given that the competitve market pice is equal to P*, Should the firm shut down in the short run? Should it shut down in the long run? Explain. P P MC AVC ATC P=MR=AR=d o
20 MC I of d P4 ATC AVC P3 P2 a P1 Q, Q2 Q3 Output (Q) The diagram above shows cost curves for a Perfectly Competitive firm. In the short-run, its Short-Run Supply Curve is its MC curve at prices higher than: Select one: а. P4 b. P2 C. P3 d. P1 $$

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3. For a particular perfectly competitive firm SRTC = 100 + 20q + q², where q is output. If the market price is equal to 40, what is the maximum profit the firm can earn in the short run? a. $400 b. $200 c. $100 d. $0 e. -$100