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

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

1. Below is a demand schedule facing an individual firm. Complete the table by computing average revenue, total revenue, and marginal revenue. Then answer the following two questions: (a) How can you tell whether a firm is operating in a market that is perfectly competitive? (b) What relationship exists between average revenue and marginal revenue? Price $30 30 30 30 30 30 30 Quantity Average demanded revenue олдWN -о 1 2 3 4 5 6 $ Total Marginal revenue revenue $ $

Consider a perfectly competitive firm with marginal cost (MC) and average total cost (ATC) given in the figure. Price 12- MC ..... ATC Suppose the market price is 6. In this case, the firm's revenue will be and its 10- marginal revenue will be. If instead the market price were 8, the firm would earn: 8- A. positive economic profit 6- B. negative economic profit O C. zero economic profit 4- 2- 20 40 60 80 100 Output ......

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…

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Assume that there are 100 identical company in the perfectly competitive cabbage industry. Each firmhas a short-run total cost curve given by ST C = 0.5Q2 − 10Q + 300. Solve the following: 1. Assume the market demand curve is given by Q = 1500 − 50P, What is the equilibriumin this market?2. What is each company's total short-profit?3. Graph your results

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

68. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s average cost is TC = 300 + Q2 /3, and marginal cost by MC = (2/3)Q. What is the market price? A.$40 B. $32 C. $28.57 D. $30

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?