A perfectly competitive firm has a cost function: C = 10 + 2q² The firm can sell its output at the price p = 12 per unit. Find how much the firm has to produce to maximize its profit and its profit at that quantity.
Q: According to the midpoint method, the price elasticity of demand between points A and B on the…
A: Elasticity is a measure of how sensitive the quantity demanded or supplied of a good or service is…
Q: 6. Individual and market supply Suppose that Van and Amy are the only suppliers of pizza slices in a…
A: Supply curve shows the direct relationship between price and quantity supplied, ceteris paribus. The…
Q: Use the following normal-form game to answer the questions below. Player 1 Strategy A B O (A,C) O…
A: There are two players in the game : Player 1 & 2 Strategy Set of player 1 : { A , B }…
Q: 3.) Todd is a farmer who grows corn. He consumes corn himself but he also sells it at the local…
A: Todd has farm of corn , and the produce is used for both income and consumption purposes.Price of…
Q: Based on the information in the second graph, when the market price of a bluetooth speaker decreases…
A: Consumer surplus is the benefit that the customer receives from purchasing the commodity at a price…
Q: Many schemes for price discriminating involve some cost. For example, discount coupons take up the…
A: Monopoly market refers to the market structure that can be identified by one seller, who sells a…
Q: Assume that the reserve requirement is 10 percent. If the Federal Reserve buys $3,000 worth of…
A: The currency and cash in the economy are regulated by the central bank. The supply of money includes…
Q: The market equilibrium quantity is units of electric cars, but the socially optimal quantity of…
A: It can be defined as a level of output that can benefit the whole of society not only any particular…
Q: (Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand…
A: A model used in macroeconomics is the (AD/AS) model. It clarifies how an economy's price level and…
Q: Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were…
A: The growth of real GDP refers to the increase in the inflation-adjusted value of all goods and…
Q: You consume only soda and pizza. One day, the price of soda goes up, the price of pizza goes down,…
A: The indifference curve is the locus of points of two goods that give the same level of satisfaction…
Q: Q.2.2 Explain the use of any two of Kaizen 's key primary elements for the achievement of social…
A: Kaizen is a Japanese business philosophy that emphasizes continuous improvement in all aspects of an…
Q: Julio receives utility from consuming food (F) and clothing (C) as given by the utility function…
A: Marginal Rate of Substitution: It represents the rate at which a person is willing to trade one good…
Q: The following graph plots a supply curve (orange line) for a group of recent graduates looking to…
A: Producer surplus is the benefit a seller gets by selling its output at price higher than its minimum…
Q: The graph illustrates the market for pesticide with no government intervention. The pesticide…
A: External costs or negative externalities are the harmful side effects arise out of production or…
Q: 3. The effect of negative externalities on the optimal quantityof consumption Consider the market…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: Use the information in the graph to the right to find the values for the following at an output…
A: Average variable cost is the variable cost divided by the quantity.AVC is U shaped curve.Average…
Q: Fill in the blanks to complete the passage about discount loans. Discount loans extended by the…
A: One type of financial instrument offered by central banks is the discount loan. These loans are…
Q: The graph to the right represents the market for DVDs. The value of consumer surplus is $40 million.…
A: Consumer surplus is the area below the demand curve and above the equilibrium price level. Producer…
Q: For equipment that has a first cost of $13,000, the estimated operating costs and year-end salvage…
A: The annual worth ascertains the annual cash flow throughout the investment period which is…
Q: Consider the following data for the United States: Date 2019 2020 2021 Nominal GDP (billions of…
A: Real GDP: GDP that is adjusted for inflation is known as real GDP, Real GDP is calculated at a…
Q: The figure plots an index of real wages against population in England from the 1280s to the 1860s.…
A: The Malthusian trap was given by economist Thomas Malthus, According to him when the population…
Q: The graphs below illustrate an initial equilibrium for some economy. Suppose that the economy…
A: Equilibrium is the condition where demand equates the supply, or in the graph where curves are…
Q: Which of the following statements accurately describe the effect of the increase in government…
A: The aforementioned term in economics refers to a country's government borrowing money with the…
Q: If the on-campus demand for soda is as follows: Price (per can) Quantity demanded (per day) $ $3.00…
A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…
Q: Problem 1-1 History and Objectives of the Tax System (LO 1.1) Indicate whether the following…
A: Tax system refers to set of rules and regulations created by the government to collect revenue from…
Q: Suppose that Freedonia and Desonia agree to trade. Each country focuses its resources on producing…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: (Table 19.2) Quantity Consumed Total Utility 15. 1 2 3 Diminishing marginal utility occurs Multiple…
A: Total utility: The total satisfaction derived from the consumption of a good or service. Marginal…
Q: The exchange rate between AUD and USD is AUD$1 = USD$0.67. The exchange rate between Mexican Peso…
A: Exchange rate is the relative price of the currency which is expressed in terms of another…
Q: 6. Consider the following AD/AS diagram. Suppose the economy experiences a positive aggregate demand…
A: Macroeconomic monitoring will continue to be important since it dictates the economy's ultimate…
Q: The graph illustrates the market for pesticide with no government intervention. When the factories…
A: An activity by others that affects other parties is known as external cost. It may be cost or…
Q: The graph of a price-demand equations is shown below. Demand is in thousands of units and price is…
A: Demand refers to the quantity of a particular good or service that consumers are willing and able to…
Q: On the following graph, use the orange points (square symbol) to plot the nominal interest rates for…
A: Real interest rate is inflation adjusted nominal interest rate. Formula:Real interest rate = Nominal…
Q: On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve…
A: Deadweight loss is the cost that society has to bear because of the inefficiency of the market…
Q: parking gar expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be…
A: The breakeven point is a key concept in business and finance that reflects the level of sales or…
Q: Using the following diagram, use the wedge shortcut to answer these questions: a. If a tax of $2…
A: Deadweight loss describes the loss of economic efficiency that occurs when the equilibrium of a…
Q: The following graph shows the labor market for steelworkers. Assume that all firms in the steel…
A: Labor Demand describes the total amount of labor that an employer is willing to employ at a given…
Q: Ch. 4. Agglomeration Economies and Equilibrium vs. Efficient Cluster Size The graph shows the…
A: Pareto efficient point refers to the point deviating from which no one can be made better off…
Q: Suppose that every driver faces a 3% probability of an automobile accident every year. An accident…
A: The probability of loss is 0.03The average cost of an accident to each driver= $5000Two types of…
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Step by step
Solved in 4 steps with 2 images
- PRICE (Dollars per tracker) 30 80 70 60 ATC 20 AVC MC 10 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of trackers per day) In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run of $ thousand per day for the firm.What is the total cost at the profit-maximizing output? What is the profit or loss at the profit-maximizing output? What is the firm's total fixed cost?A firm has a linear demand function for its product. When the price of the product isSh.220, the quantity demanded is 40 units. When the price increases to Sh.240, thequantity demanded becomes 30 units. In addition, the firm’s marginal cost function isgiven by:MC = 40q – 2q2 + 2Fixed cost = Sh.5 millionWhere q = quantity demanded, MC = marginal cost (Sh. million)Evaluate the level of output that maximizes profits.
- Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC₁ and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 10 10 5 0 MC 2 ATC 8 18 QUANTITY (Thousands of overallises per day) AVC 10 20 Profit or Loss In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm. $ overallses.10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)
- Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.A young Thomas Edison makes 20 light bulbs a week in his dorm room. The parts for each light bulb cost $2.25. He sells each light bulb for $5.25. General Electric offers Thomas an executive job that pays $55.00 a week. Thomas’s weekly economic profit from making light bulbs is equal to: Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. $The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.
- Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $7,500 if she had used the company's inputs in a different way. Calculate Audra’s economic profit.The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 45 40 35 15 10 5 0 0 2 MC ATC AVC 10 12 4 8 14 16 QUANTITY (Thousands of overallses per day) 18 20 In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of The rectangular area represents a short-run Profit or Loss On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. of $ overallses. thousand per day for the firm.The graph shows the Cost curves for a profit maximizing firm in a competitive market. If the market price is $30 and the firm produces at the profit maximum quantity, what is the amount of the total fix cost