An economist estimated that the cost function of a single-product firm in a perfectly competitive market is C(Q) = 4.7+ 10 + 1.20². If all firms have the same cost structure, what will be the long-run equilibrium price in this market?
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- The total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q Find the equilibrium price and total quantity that the industry produces. Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80 – 4Q? Is this hostile takeover beneficial?Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…The fastfood industry can be considered a perfectly competitive industry between two competitive firms: Jollibee and McDonalds. The total cost function of one of the firms is expressed by C(Q) = 100 + 4Q2, and demand is P = 80 – 4Q Find the equilibrium price and total quantity that the industry produces. Suppose that Jollibee successfully acquired McDonalds through a hostile takeover. What would be the new equilibrium price and quantity if MR = 80 – 4Q? Is this hostile takeover beneficial?
- Assume a competitive firm faces a market price of $70, a cost curve of: C = 0.002q³ + 30q + 750, MC = 0.006q² + 30. The firm's profit maximizing output level (to the nearest tenth) is 81.64 units, and the profit (to the nearest penny) at this output level is $ and marginal cost curve of:Consider a number of firms facing identical total cost function of the form: TC = Q3 -6Q2+10Q. The marginal cost associated with the cost function is: MC=3Q2 -12Q+10. A) Calculate the level of production that minimizes average variable cost. B) Calculate the shutdown price for each firm. C) Suppose market demand is given by Q=50-4P. Calculate the competitive equilibrium price and quantity for each firm. Assuming all firms are symmetric, how many exist in the long-run?Suppose that the market demand for a product is given by ( A > 0 and B > 0). Suppose QABP=-also that in a competitive industry the typical firm’s cost function is given by (k > 2()Cqkaqbq=++0, a > 0 and b > 0).(a) Calculate the long-run equilibrium market price and the output for the typical firm. (b) Calculate the equilibrium number of firms in the market.(c) Describe how changes in the demand parameters A and B affect the equilibrium number of firms in this market. Explain your results intuitively.
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. = 120 – P а. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? с. Give the equation for each firm's supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. е. What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm's profit or ^ loss. Is there…Suppose the market consist of 300 identical firms, and the market demand is given by Q = 60 – P. Each firm has a short-run total cost curve STC = 0.1 + 150Q?. 1) What is the short-run equilibrium price in this market? 2) What is the profit-maximizing quantity for each firm?Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)
- Suppose the market for cat food is perfectly competitive, with each firm having the total cost function TC (Q) = 36Q -Q2 +³, where Q is the firm's output of cat food in tens of 100 pounds. The associated average cost and marginal cost functions are AC(Q) = 36 –Q + m 0? and MC(Q) = 36 –Q +Q?. Total demand in the market is given by D(P) = 100 100 2400 – 40P, where P is the price of ten pounds of cat food. Find the long run competitive equilibrium in the cat food market, i.e. the equilibrium price, quantity supplied by each firm and number of firms operating in the market.Consider a competitive industry with a large number of firms, all of which have identical cost functions c(y) = y2 + 1 if y > 0 and c(y) = 0 ify = 0. The demand curve for this industry is D(p)= 52-p.1. Find marginal cost and average cost functions.2. What is the competitive price in this market?3. What will be the number of firms in the industry?Suppose there are in total 3 firms in the market. Firm 1 decides its output first, then Firm 2 and Firm 3 decide their outputs simultaneously. The inverse demand function is p = 14 – 3q, where q = q1 + q2 + 43, and each firm's cost function is c(q.) = 2q?. What is the quantity that Firm 1 produces? Round your answer to 2 decimal points. Answer: The correct answer is: 1.04