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

Suppose that a perfectly competitive firm faces a market price of $7 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curveat an outpuut level of 1,400 units. If the firsm produces 1,400 units, it's average variable costs equal $6.50 per unit, and its average fixed costs equal $0.80 per unit. What is the firm's maximizing (or loss-minimizing output level?   What is the amount of it's economic profits (or losses) at this output level?

Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 40 20 10 15 30 45 75 MC D 60 90 105 201355 $150¹65180195 Quantity per period (in thousands) Tools

4. Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 500 + 0.5q Marginal cost: MC = q Where q is an individual firm's quantity produced. The market demand curve for this product is Demand: Q" = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market (a) What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost. (b) Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? (c) Give the equation for each firm's supply curve. (d) Give the equation for the market supply curve for the short run in which the number of firms is fixed. (e) What is the equilibrium price and quantity for this market in the short run? (f) In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Is…