A firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB = 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?

Q: Calculate how many units of æ1 the profit-maximizing firm will demand in the short run if the…

A: We know that profit maximizing means wether you maximize revenue keeping Cost fixed or you Minimise…

Q: Suppose that the firm with the costs and revenues shown in the graph below is contemplating whether…

A: A perfectly competitive firm is known as a price taker because the strain of competing firms forces…

Q: Explain how to figure out the number of tubes each company would need to manufacture and sell to…

A: The term "manufacturing" basically refers to the process of transforming raw materials or component…

Q: If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000…

A: A firm faces different shut down constraint in different time periods such that in short-run or in…

Q: What happens to the market and the firm in the long run?  Indicate clearly what happens to price,…

A: In the long-run, the demand matches the supply.

Q: A firm uses two inputs x and y, and their profit function is P(x,y)=2xy+2x-3y. Input x costs $2 each…

A:

Q: We have a company in perfect competition that aims to maximize profits and produces according to the…

A: The profit maximizing firm in Perfect competition will hire worker at a point where Marginal revenue…

Q: s 62.36 units, and the profit (to the nearest penny) at this output le y to shift right. This will…

A: C= 0·003 q³ + 25q +750  AC = c/q = 0·003 q² +25+750/q dAC/dq = 0.006q - 750q2. =0 0.0069 = 750/q²…

Q: A firm sells a product in a purely competitive market. The marginal cost of the product at the…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: Price and cost $40.50 36.00 30.00 22.00 20.00 loss of $2,520 0 O profit of $1,300 Oprofit of $1,440…

A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…

Q: Total Cost Variable Cost Quantity (dollars) (dollars) $800 $0 100 1,260 200 1,660 300 2,560 400…

A: In a perfectly competitive market, firms produce identical goods. Price is constant and equal to…

Q: An automobile repair shop charges the competitive market price of $16 per bike repaired. The firm's…

A:

Q: Middletown manufacturing company makes plastic plates and cups, both of which require time on two…

A: Let plates be P and cups be C.   P is on the y-axis and C is on the x-axis. Profit: 10 P+ 12 C…

Q: Fresno County, California is the largest agricultural producing county in the country and almonds…

A: Profit Margin:profit margin represents the percentage of revenue (or profit) a company retains as…

Q: Units of Resource 0 1 2 3 4 5 Total Product 0 10 18 24 28 30 Total Revenue ($) 0 30 54 72 84 90…

A: The marginal revenue generated by using one more unit of a resource is known as the marginal revenue…

Q: 13. Suppose the total cost of producing x units of a certain commodity is given by C(x) = 100x +…

A: Profit function: Profit = Total Revenue - Total Cost Marginal profit function: Differentiating the…

Q: Assume a competitive firm faces a market price of $60, and a cost curve of: C=0.003q³+50q+750. The…

A: In a competitive market ,  A firm will maximize profit where P = MC  P is the market price  MC is…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: When P is $25, Quantity is taken from minimum AVC which is 30,000When P is $70, Quantity is taken…

Q: Consider a firm in a competitive industry . The firm's average cost curve and marginal cost curve…

A: In the above diagram, the firm in a competitive industry produces output at a point where the…

Q: . Consider the following information of a hypothetical fırm: Q = 100K0.6 L0.8; w = 1; r = 3 %3D A.…

A: Given  Production function: Q=100K0.6L0.8               .... (1) wage rate w=1 and rent r=3

Q: Price and cost (dollars) 16 14 12 10 2 0 50 MR Output 100 SMC ATC AVC 150 D

A: Price setter is a firm that can decide its own prices like a monopoly which has a power to make…

Q: In the market of a homogeneous product, two companies, A and B, produce with same technology. The…

A: Introduction We have given a market for homogeneous product.  1) Suppose both companies will choose…

Q: The market for Christmas trees is perfectly competitive. Each tree costs $80. A firm in this market…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Which of the following indicates an item to be a good candidate for outsourcing? 1) The item is…

A: In-house workers are those workers who perform their activities within the organizational…

Q: A manufacturer of electric switches in a competitive industry has a fixed monthly cost of $50,000,…

A: Fixed monthly cost = $50000Monthly variable cost = $100000MC= $5Monthly production = 100000 units

Q: Price ($) 40 36 32 28 24 20 16 12 00 4 0 4 8 12 16 20 24 28 32 36 40 Quantity per period a. If the…

A: Elasticity measures the percentage change in quantity due to percentage change in price. The price…

Q: A firm faces the following demand and total cost schedules, with all quantities listed on a…

A: Total cost describes the amount of FC and VC incurred by a firm in the production of products or…

Q: Suppose that a sole proprietorship is earning total revenue of { 1,00,000 and is incurring explicit…

A:

Q: At a market price of $5 your artisanal pencil business maximizes profits by producing 484 pencils…

A: Total revenue refers to all collected value  from  selling of goods and services  in the market.It…

Q: A competitive firm faces the following market price: P=200. Variable costs are C(Q)=Q^2. The firm…

A: Total cost is the sum of fixed cost and variable cost. Sunk costs are fixed costs which cannot be…

Q: A perfect competitive firm estimates her cost function as given below: C = 100 + 5Q2 a. What is the…

A: Profit maximization is one of the key goals of firms operating in a competitive market. Profit is…

Q: ket price for a guitar tuner is $20 and the cost functions are: TC (9) = .01q² + .2q + 4950 MC (q) =…

A: Since you have posted multiple parts question, we will solve the first three parts for you. If you…

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…

A: The marginal-cost is the cost incurred on the production of an additional-unit of output. And the…

Q: On the graph input tool, change the number found in the Quantity Demanded field to determine the…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: Total Product 1 2 3 4 5 6 7 8 9 10 Average Fixed Cost $ 150.00 75.00 50.00 37.50 30.00 25.00 21.43…

A: A Perfectly Competitive firm maximizes profit by producing output at a level where Price is equal to…

Q: A firm produces a product which it sells in a perfectly competitive market. The price of the product…

A: Profit, difference  of TR over TC, is highest at the unit of output where marginal cost matches the…

Q: A firm has the following total costs, where Q is output and TC is total cost: QTC0$…

A: The following table is provided that highlights the total quantity produced and the cost of…

Q: A firm sells its product i two different markets. the inverse demand in market A is PA=72-5QA & in…

A: The fixed costs and the variable costs of the firms tend to be the major costs which a firm needs to…

Q: ·20아 MC ATC AVC 16 12 8. 5 10 15 2O 25 30 35 40 45 50 Quantity (units per day) The above figure…

A: A perfect competition is a market structure in which many vendors and buyers are present. In this…

Q: Ross is an owner of a donut shop and is subjected to a perfectly competitive market. When the news…

A: In a perfectly competitive market, the market price is determined by the market forces at the…

Q: Market Representative Firm MC АТС b. $8 AVC $6 a MR = P D1 20,000 100 125 Quantity (Q) Output (Q)…

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