A firm’s profit equation is given by: Total Profit = -100 + 160Q – 20Q2 . Therefore, Select one: A. The firm’s fixed cost is 100. B. The firm should produce zero output C. Marginal Profit = 160 – 20Q. D. The firm’s profit-maximizing output is Q = 8.
Q: Suppose it costs c(x) = x³ – 6x? + 15x dollars to produce x radiators when 8 to 10 radiators are…
A: Marginal revenue is the additional revenue earned from the sale of an extra unit of output. Marginal…
Q: Assume a certain firm is producing 1000 units of output. At Q = 1,000, the firm's marginal cost…
A: The firms, businesses, organizations, and other producers work with the motive to produce a given…
Q: The information below applies to a competitive firm that sells its output for $45 per unit. When the…
A: Marginal revenue is the additional revenue gained from selling an additional unit of the output. In…
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: orofit-maximizing quantity is
A: The expenses occurred during the output production depicts the total cost (TC). The revenue occurred…
Q: Consider a firm with constant marginal costs. Which of the following statements is correct regarding…
A: The correct statement regarding the isoprofit curves of a firm with constant marginal costs is:a.…
Q: (d) Find an expression for Chetan's supply curve. (e) Sketch Chetan's supply curve, his marginal…
A: Chetan's Fishing rods is a price taker so they are operating in perfectly competitive market. Chetan…
Q: The following equation describes a firm's total cost. TC = 10 + 10Q +5Q2 a. If the firm is a price…
A: Production is the process of manufacturing goods and services to suit the needs of a varied range of…
Q: part 1. Leave 'r' and 'w' as constants. Solve the cost minimization problem to find L*(q) and K*(q).
A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…
Q: A firm’s objective is to Maximize Profits and Minimize Costs. Demand is Q = 600 – 3*P. The firm’s…
A:
Q: If a competitive firm has a U-shaped marginal cost curve then A) the profit maximizing output will…
A: A competitive firm refers to a type of market in which there are many seller and buyer dealing in a…
Q: C(q)=100+10q. What is the profit-maximizing level of output? What profit does the firm earn at this…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: The figure below displays the short-run marginal cost and short-run average cost curves for a firm.…
A: In short run , In perfect competition , firm will produce where P = MC P is the price MC is the…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A:
Q: Consider a competitive firm with a short-run cost function C(q) = 100q−q2 + 1/5q3 +450. (a)…
A: Answer to the three sub parts are as follows :
Q: Assume a number of street vendors sell hamburgers in a city. Each vendor has a marginal cost of 30…
A: The total cost incurred by a firm includes fixed costs and variable costs. Fixed costs are costs…
Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200?. 4a.What is the firm's…
A: Marginal cost is the cost incurred when one additional unit of output is generated.
Q: a) Suppose the average total cost (ATC) of a firmis given as 4 ATC = Q +-2 Find the output(Q) that…
A: Total cost is average total cost multiplied by quantity. Marginal cost is the change in total cost…
Q: A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2Q…
A: The total revenue of a firm is the total payment it receives from the sale of goods and services.…
Q: A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find…
A: Our goal is to determine the profit-maximizing production level, calculate the associated profit,…
Q: Suppose a firm is able to sell their product for a price of $3. You have the following information…
A: Economic profit refers to the money earned after substracting the explicit and implicit costs from…
Q: The relationship between the firm's average variable, average total, and marginal cost curves above:…
A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…
Q: A perfectly competitive firm sells its good for $20. If marginal cost is four times the quantity…
A: Perfectly competitive market refers to the market structure in which there are large number of…
Q: A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed cost is $15,000…
A: Given Case 1: A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed…
Q: A competitive firm has a cost function C-2q³-12q²+20q+100. The optimal output at price of 92 is a.…
A: COST can be defined as a concept that shows the amount of expenditure and any other sacrifice such…
Q: Assume a firm is producing at a quantity where marginal cost is higher than marginal revenue. Which…
A: A firm maximizes profit by producing output at a level where Marginal Revenue is equal to Marginal…
Q: Suppose a firm is able to sell their product for a price of $10. You have the following information…
A: Economic profit refers to the financial gain earned by a company after deducting both explicit and…
Q: The short-run marginal and average cost curves for a firm are displayed below. When q = q 5, the…
A: Perfect competition refers to the situation prevailing in a market in which consumers and producers…
Q: The profit function for a firm is given by (q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm…
A: Since, you have asked question will multiple parts, we will be answering the first three parts for…
Q: What is the profit maximizing output for Tex? Show your work. What is his selling price? How much…
A:
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…
A firm’s profit equation is given by: Total Profit = -100 + 160Q – 20Q2 . Therefore,
A. The firm’s fixed cost is 100.
B. The firm should produce zero output
C. Marginal Profit = 160 – 20Q.
D. The firm’s profit-maximizing output is Q = 8.
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- p= 130 - 2Q. The firm's cost curve is C(Q) = 20 + 6Q. What is the profit-maximizing solution? The profit-maximizing quantity is O. (Round your answer to two decimal places.) The profit-maximizing price is $. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $]. (round your answer to two decimal places.) How does your answer change if C(Q) = 100 + 6Q? The increase in fixed cost O A. causes the firm to increase both the price and quantity, and profit increases. O B. has no effect on the equilibrium price and quantity, but profit will decrease. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. OD. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases.The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.Solve the following
- A Milton company works in perfect competition market, its total cost curve in short run is given in this function:TC = 200 − 4Q + 0.5Q2a. What output level should the firm produce to maximize profit? knowing that average revenue is $10.b. What is the firm profit at this level of output?A firm has the following demand function P=200-2Q and the average cost of AC=100/Q+3Q-20 a. Find the profit function. b. Estimate the marginal cost function. c. Obtain the production that maximizes the profit. d. Evaluate the average cost and the marginal cost at the maximising production level.cise 2The information below applies to a competitive firm that sells its output for $45 per unit. When the firm produces and sells 100 units of output, its average total cost is $24.5.When the firm produces and sells 101 units of output, its average total cost is $24.65. Suppose the firm is currently producing and selling 100 units of output. Should the firm increase its output to 101 units? a. Yes, because the marginal revenue exceeds the marginal cost. b. Yes, because the marginal revenue exceeds the average total cost c. No, because the marginal cost exceeds the marginal revenue. d. No, because the average total cost exceeds the marginal revenue.
- 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.A competitive firm has a cost function C=2q³-12q²+20q+100. The optimal output at price of 92 is a. b. C. d. e. a. b. C. d. e. A competitive firm has a cost function C=2q³-12q2+20q+100. At price 92, the optimal profit is a. b. C. d. e. 10. 8. 6. A competitive firm has a cost function C=2q³-12q²+20q+100. At price 92, the optimal producer surplus is a. b. 4. None of the above. C. d. e. -220. 634. 529. 332. None of the above. -120. 734. 629. A competitive firm has a cost function C-2q³-12q²+20q+100. The firm's supply curve is given by 432. None of the above. P=2q³-12q²+20q+100 for q20. P=6q²-24q+20 for q20. P-6q²-24q+20 for q23. 2q³-12q²+20q+100 for q≥12. None of the above.Assume a number of street vendors sell hamburgers in a city. Each vendor has a marginal cost of 30 NOK per hamburger sold and there are no fixed costs. The maximum number of hamburgers that any vendor can sell is 100 per day. a) If the market is perfectly competitive and the price of each hamburger is 40 NOK. How many hamburgers does each street vendor want to sell and what is each vendor’s profit per day assuming the desired quantity is sold?b) Why is this solution not a long run equilibrium?c) Suppose all the vendors merges and thus appears as a monopolist in the market. After merging marginal cost is constant. Make a diagram and explain the optimal solution for the monopolist.d) How can you explain that the solution from c) is such that the profit is maximized?e) Explain the social costs of the monopoly situation in this market. f) Suppose many consumers in this hamburger market became “addicted”. How would you explain this change in consumers demand and how would it affect social…
- Q3: a. If a competitive firm is making loss in the short run, and it is selling a (100) units of a good at S.R(9). To be known that the AVC is S.R(10). What should the firm decide? If the quantity produced changed from 1 to 2, the total cost changed from 64 to 80 and the price is 40. b. What is the total revenue? c. What is the marginal cost?A profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true? a If the firm produced, the firm's revenues would have been lower than $100. bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.2. Assume a firm is a small business and act as a price-taker in the market, the market price of the firm's product is 20. The firm's cost function is: C(q) = 0.5q?+5q+100. a. What is the firm's optimal output level? b. What's the firm's highest profit?
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)
![Economics:](https://www.bartleby.com/isbn_cover_images/9781285859460/9781285859460_smallCoverImage.gif)