a. What is firm A's profit-maximizing level of output if market price is set at $1.40?_Qb. Firm A's total revenue if market price is set at $1.30? $.c. Firm A's Average Fixed Cost at 21 units of output x is: $d. Firm A's Total Cost at 21 units of output x is: $ - Graph below shows costs, price, and quantity of x for firm A which is a price takeroperating in a perfectly competitive market.1.91.81.61.51.41638aaaa090.3Price ($ per unit)0.5MCATCAVCQuantity Qx

a. What is firm A's profit-maximizing level of output if market price is set at $1.40? _Q b. Firm A's total revenue if market price is set at $1.30? $ c. Firm A's Average Fixed Cost at 21 units of output x is: $

a. What is firm A's profit-maximizing level of output if market price is set at $1.40? _Q b. Firm A's total revenue if market price is set at $1.30? $ c. Firm A's Average Fixed Cost at 21 units of output x is: $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2where TC is total cost and Q is output level.a. Find the firm’s average total cost function. b. Find the firm’s average variable cost function. c. Find the firm’s marginal cost function. d. Given the price is $100, what is the profit-maximizing output level? e. Given the price is $100, what is the profit level? f. Over time, is there going to be entry or exit in this competitive market? Why?
A perfectly competitive firm has total revenue and total cost curves given by: TR = 800Q TC = 4,000 + 12Q + 2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make
PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q Price (P) = $9 MC → Marginal Cost q→ Quantity (b) What is a Firm's Producer Surplus assuming the following? Area of Triangle = 1/2* Base * Height (c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the Short-Run given the following? AVC (q) =3+q FC = $3 AVC → Average Variable Cost FC Fixed Cost
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Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.
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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?
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…
QUES if you have the following graph MC MR $30 ATC AVC 20 15 75 80 100 Output
Which of the following statements is correct with respect to profit maximization? PLEASE EXPLAIN A. If the total revenue and the total cost functions are linear functions, and the total revenue function is above the total cost function, the firm can produce as many as it wants and there will be economic profits. B. If the total revenue and the total cost functions are linear functions, but the total revenue function is below the total cost function, the optimal output is zero. C. If the total cost function is linear, the total revenue function is quadratic with an inverted U shape, and there are output where the total revenue is greater than the total cost, there is a unique optimal output that maximizes profits D. A and C are correct E. A, B and C are correct