7.Assume a representative firm in a market characterized by low barriers to entryand exit faces a demand function of D: P = 80-10q, has fixed costs (FC) of 20, anopportunity cost value of 8, and variable costs (VC) as noted below.QVC01234560103060100150210Calculate the firm's profit-maximizing level of output and the corresponding level ofeconomic profit.

Answered: Image /qna-images/answer/e0de161c-def8-45da-9410-b56b8740f3b9.jpg

Answered: 7. Assume a representative firm in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Consider the following information: TC = 20 + 5Q + Q2 Q = 25 – P Where TC is total cost, Q is the total product and P is price. What is the correct expression for total profit? a. 20Q + 5Q2 +20 b. 20 – 2Q2 – Q c. 20Q – 2Q2 – 20 d. Q + 2Q2 + 20
Question Suppose firm VACC produces in a (perfectly) competitive industry and has the cost function C = 300 + 2q^2 + 15q where q is its output level. a) What are VACC's marginal cost? b) How much output will VACC produce for a price P = 115? c) Compute VACC's profits. d) What is the difference between a firm's profits and producer surplus ? (Can you give an intuition for the concept of producer surplus ?) e) What is VACC's producer surplus ?
The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30 q2 − 12.85q + 20 +400/q, where q is the firm's output. i. Is the rate of change of profit increasing or decreasing when theouput level of the firm is 10 units?ii. Determine the level of output for which the firm's profit is maximized.iii. What is the firm's maximum profit?
Identification. Answer the following questions below. QUESTIONS: 1.) What are the ways to cut firm's production costs? 2.) What determines the firm's market power or competitive advantage? 3.) Graphically, in a purely competitive market, demand is equal to what? 4.) Using curves, graphically, a firm will shutdown if what? 5.) What is an output at which the firm makes a normal profit but noteconomic profit?
I need answers of B, C, D. Thanks
1. Teddy J is a manufacturer of dish washing liquid . If his monthly demand function for 750ml size is: q = 4000 − 250p and his total cost function is: C(q) = 500 + 0.2q (i) Derive an expression, R(q) for Teddy J′s total revenue curve.(ii) Derive an expression, Π(q) for Teddy J's profit function.(iii) Determine whether Teddy J′s profit is increasing or decreasing when he produces 5 hundred, 750ml bottles of dish washing liquid.
M8
7. Short-run supply and long-run equilibrium Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. COSTS (Dollars per pound) 100 90 80 70 40 30 20 10 0 0 MC D 5 10 ATC 15, 15 AVC ☐ 15 20 25 30 35 QUANTITY (Thousands of pounds) 40 + 45 50 The following graph plots the market demand curve for ruthenium. (?)
urgent
2. A firm, focusing on producing soft drinks has a demand function 4Q 35-0.5P. If the fixed cost is 50 and variable cost per unit function is 4Q-51+, where Q 320 is number of soft drinks produced and P is the price per soft drink: a. Determine the number of soft drinks that maximizes the company's profit. b. How much should the firm charge for one soft drink? c. Find the total profit at the profit maximizing level of output. d. Using the own price elasticity of demand, comment on the firm's pricing policy options.
Answer Box: -5,0,3,5,10,30,45,50, continue to produce, shut down, Other
2. The revenue function of a firm producing one product is given by r = 1000q2q2, where q denotes the demand for the product. a. Determine the domain of r(q). b. Determine the range of r(q). c. For which demand(s) q is the revenue of the firm equal to 0? d. Draw the graph of the revenue function.

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