Answered: 4. The cost function for a firm facing…

4. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q²+0.01q^3 What is the minimum price at which this firm will produce q> 0 in the short run? Show your work.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section22.2: Perfect Competition In The Short Run

Problem 2ST

See similar textbooks

Related questions

Q: Demand for Fries QD(P) = 10,000 - 10P N number of firms follow: TC(Q) = 20,000 +0.5Q^2 What…

A: In a perfectly competitive market there are large number of firms produce similar and identical…

Q: A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost…

A: The objective of the question is to calculate the profit of a competitive firm that is maximizing…

Q: Suppose firm A charges $10 for its product. The marginal cost of producing each unit of the product…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: orofit-maximizing quantity is

A: The expenses occurred during the output production depicts the total cost (TC). The revenue occurred…

Q: You are given the following information for a producer of organic grommets in a perfectly…

A: Perfect competition is a type of market where there are very large number of firms,which have no…

Q: Suppose that each firm in a competitive industry has the following costs: where q is an…

A: Hi, since there are multiple questions posted, we will answer the first question. If you want any…

Q: A firm operating in a perfectly competitive market has a total cost function:…

A: A competitive market, also known as a perfectly competitive market, is a market structure…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Marginal Revenue is the cash a firm makes for each extra deal. As such, it decides how much a firm…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Answer: True A firm in a competitive market also wishes to maximize its profit like a firm in any…

Q: If the market price is $100, find the output and the profit of a typical firm producing facial…

A: A rational firm producing facial paper wants to maximize its profit and always produces profit…

Q: Suppose that a perfectly competitive firm's fixed cost is 120 and all of this fixed cos is a sunk…

A: Total cost refers to sun of Fixed and variable cost In perfectly market, price of equal to marginal…

Q: Suppose a firm in a competitive industry has the following cost curves: 10 9 8 7 6 5 4 3 2 1 Price +…

A: In a competitive market, there are many firms in the market producing identical goods. People can…

Q: a. If a competitive firm is making loss in the short run, and it is selling a (100) units of a good…

A: Given: Units sold=100 Selling price=SR 9 AVC=SR 10 Quantity Total Cost Price 1 64 40 2 80 40

Q: Suppose a firm in the short run has Fixed Cost - $100. Its Variable cost - q? where q is the…

A: A firm's motive is to maximize profits by optimal use of inputs. A firm maximizes profit when an…

Q: Assume a competitive firm faces a market price of $120, and a cost curve of: C = 0.004q° + 25q +…

A: The markets are the place where the buyers, and sellers of products meet and interact. The markets…

Q: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm's quantity produced The…

A: Variable costs vary based on the amount of output produced. Variable costs may include labor,…

Q: A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the…

A: Perfectly competitive industry It refers to a industry in which there are large number of buyers and…

Q: Tomato Farms is selling tomatoes in a purely competitive market. Its output is 25,000 bushels, which…

A: Fixed is the cost that remains same at all levels of output. It does not change as production…

Q: B) Consider a perfectly competitive firm with the following short-run total costs: SRTC = b + j q…

A: In a perfectly competitive market scenario firms optimize their output level such that the marginal…

Q: A Milton company works in perfect competition market, its total cost curve in short run is given in…

A: Total revenue (TR): - it is the total amount that a seller receives selling his goods and services…

Q: Given the operations of a peanut firm under perfect competition and assuming that the price of…

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…

Q: Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level…

Q: A perfectly competitive firm's total cost and marginal cost functions are: TC = 40 +0.1 Q² -0.2Q and…

A: In the perfectly competitive market, firm produces where the P =MC.

Q: If the firm operates in a perfectly competitive market, and the market price is $25 per unit, what…

A: A seller operating under competitive conditions will sell a level of output where it extricates its…

Q: Conigan Box Company produces cardboard boxes that are sold in bundles of 1000 boxes. The market is…

A: Profit is maximized in a competitive market when MR = MC. Profit is calculated by subtracting cost…

Q: Assume that a firm in a competitive market faces the following cost information. If the market price…

A: Firms in perfect competition are price takers as there are a large number of firms selling identical…

Q: COnsider the following firm in a competitive market: total cost= 50+.5Q Q= Quantity What is…

A: Costs are the expenses that a firm incurs in the production of goods and services. In the short…

Q: Consider the following costs of a typical firm in a purely competitive industry. The firm has no…

A: According to the given information, there is a perfectly competitive market having no fixed cost. A…

Q: Given the cost data in the table below, the firm will shut down and produce zero output if the…

A: The firm incurs loss if total revenue earned is less than total cost. It implies that firm is not…

Q: If any of your answers are negative, put a minus sign in front of the number. You are given the…

A: We know , TC = TFC + TVC MC = TCn - TCn-1 TFC = AFC * Q TVC = AVC*Q TC = ATC*Q

Q: Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then…

A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…

Q: Chetan's Fishing Rods is a small business that operates as a price-taker. The market price of a…

A: Given: Price of fishing rod=$30 C(q)=0.1q2+10q+10 Note: Due to multiple subparts being posted, the…

Q: Under what conditions will a competitive firm continue to grow in size? O Until it achieves minimum…

A: Competitive firm would grow until diminishing returns sets in.When increasing returns are there,its…

Question

4. The cost function for a firm facing perfect competition is
C(q)=1000+25q-0.5q²+0.01q^3
What is the minimum price at which this firm will produce q> 0 in the short run? Show your work.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 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

handwritt
Consider a competitive firm with total costs given by T C(q) = 100 + 10q + q^2. The firm faces a market price p = 50. (a) Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corresponding to profit and label it. (b) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, T R, T C, and π? (c) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?
Chetan's Fishing Rods is a small business that operates as a price-taker. The market price of a fishing rod is $30 and Chetan's long-run costs are given by C(q) = .1q° + 10q + 10, where is the number of fishing rods that Chetan produces. Answer the following: (a) How many rods does Chetan produce to maximize profits? (b) What are his profits? (c) At what level of output are average costs minimized? (d) Find an expression for Chetan's supply curve. (e) Sketch Chetan's supply curve, his marginal cost curve and his average cost curve.
2) A doodad retailer is attempting to market its new product lineup as “the doodad that does it all” and now with “70% less ‘dad’ & 100% more ‘dood’”. If successful, the retailer will carve out a small portion of the market. The firm’s demand & cost structures would be: P = 220 – 3qi & TC = 350 + 10qi + 3qi2 . Answer the following questions about the firm. What is the firm’s optimal price & quantity strategy. What is the firm’s breakeven quantity(ies) (show your work). What is the expected long-run outcome for this firm (no math required here). What can this firm do to protect itself from potential long-run market adjustments. EC: Is this firm productively and allocatively efficient in the long-run (no math needed). I need help with number 2.
2
Not image upload answer please.
Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed cost given only the available information, what would you except product price to be in the long run?
Given the operations of a peanut firm under perfect competition and assuming that the price of peanut butter = 35 and fixed costs = 50. What is the marginal cost at the 5th unit and output?
Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…
Please do a,b,c,d,e
Please provide quick answer
A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q2 a. What output level should the firm produce to maximize profit? knowing that averagerevenue is $10. b. What is the firm profit at this level of output?>>>>>>>>>>>>>>>>>>>>>>>>>>>>Suppose the production function for high quality brandy is given by : Q = √KLWhere q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. If the capital rents for 10$ and the wage are 5$per hour ., write the short run total cost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. How many labor hours will be hired per week?…