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A: TC=712+q2Now,AC=TCqAC=712q+q
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At the profit-maximizing output level, what will be the relationship between the
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- A perfectly competitive industry consists of 700 identical firms, each with a short-run supply curve given by Qs = –20 + 15P. What is the equation for the industry's short-run supply curve?What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere? Construct a concrete cost function of this type and carry out the search for the profit-maximizing output.Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.
- Consider a perfectly competitive market for wheat in New York City. There are 130 firms in the industry, each of which has the cost curves shown on the following graph: 100 90 MC 80 70 60 ATC 50 40 30 AVC 20 10 5 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of bushels) COST(Cents per bushel)Consider the following cost curves faced by each firm: TC = 60 +0.5q and MC = q, where q is the individual output for each firm in a perfectly competitive market. Assume the market demand is described by theequation: Q = 100 - 2P where Q is the market output in 100s of units. Currently, the market price is $10. What would one expect to happen in this market in the long run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Forko In the long run, firms will either enter or exit the market. a b. In the long run, firms will enter the market. In the long run, firms will exit the market. In the long run, firms will neither enter nor exit the market.Refer to the above diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is?
- Suppose that the market for air fresheners is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. 40 36 Profit or Loss 32 28 24 ATC 16 12 AVC MC + 0 2 4 8 10 12 14 16 18 QUANTITY (Thousands of air fresheners) In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners per day. 20 20 8. PRICE (Dollars per air freshener)For each lettered space in the following table, determine the appropriate dollar amount (See the chart attached) Assume that the above cost data is for a perfectly competitive firm. Using this data answer the following: (a) If the market equilibrium price that this firm charges is $50, what level of output must this firm produce to maximize its profit? (b) What would be the amount of profit that this firm would earn if it produced at the profit-maximizing level of output? 3. You read in a business magazine that farmers are reaping high profits. With the theory of perfect competition in mind, what do you expect to happen over time (in the long run) to each of the following? a. The prices of agricultural products b. The profits of farmers c. The equilibrium output in agricultural markets d. The number of farms 4. Distinguish between economies of scale and diseconomies of scale. Give examples of why a…In the above figure, if the price is $16 per unit, how many units will a profit maximizing perfectly competitive firm produce?