Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC=625+ Q² and MC=2Q, and for the industry, demand is given by P= 100-Q and supply is given by S=Q. After having solved for market price, determine the firm's profit maximizing level of output and the corresponding profit. O Q=50, Profit=0 O Q=25, Profit= - 30,000 O Q=25, Profit=0 O Q=50, Profit=50

Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC=625+ Q² and MC=2Q, and for the industry, demand is given by P= 100-Q and supply is given by S=Q. After having solved for market price, determine the firm's profit maximizing level of output and the corresponding profit. O Q=50, Profit=0 O Q=25, Profit= - 30,000 O Q=25, Profit=0 O Q=50, Profit=50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the perfectly competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves shown on the following graph
Given the information presented in the following graph, which of the following is an accurate statement? Price Po 0 ATC AVC m 20 MC DD Quantity Because this is a perfectly competitive firm, the profit maximizing rule is not P = MC, Profits will be reduced by expanding production to the zone where MC exceeds MR. Because this is a perfectly competitive firm, the profit maximizing rule is not P = MR. Production should keep expanding because MR is always less than MC.
Economic theory would suggest that the profitability of an industry would be O inversely related to the number of firms competing in the industry. O unrelated to the number of firms competing in the industry. O zero in the long run, regardless of market structure. O directly related to the number of firms competing in the industry.
If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q² + 2Q? where Q1 and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P2 respectively, find the optimal levels of output that the firm should produce to maximize its profit O a. Q 1/4P and Q b. Q; 1/6P and Q = 1/4P2 Oc. Q; =1/6P and Q; = 1/6P2 O d. Qi 1/4P, and Q = 1/6P, ; = 1/4P,
ANSWER THE MULTIPLE CHOICE QUESTION.
Nn4
Given that a perfectly competitive firm incurs TC=200+Q2-40Q and market demand is equal to P=3000-10Qd and market supply is equal to P=1000+4Qs where Qd and Qs are quantity demand and quantity supply respectively .Then a) What is the profit maximizing level of output,equilibrium level of price and MR of the firm b) What is the maximum profit at equilibrium level and Draw the graph showing the equilibrium level c) Is the firm at short run or long run? How do you know
Answer Box: q= 0,5,10,15,20
Consider a perfectly competitive market with similar firms. Assume the total demand in the market is MWTP = 93 - 3Q. Each firm's total cost is TC = q^3 - 2q^2 +4q and its marginal cost is MC = 4 - 4q +3q^2. What is the long-run number of firms in the market? Decimals are possible. Answer to the second decimal place, and do not round until your final answer!
2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TC(q) = 2+4q+q² TCB (q) = 8+4q+6q² (a) Derive the short-run supply curve for each firm type (b) What is the short-run market supply, if there are 6 Type A firms, and 12 Type B firms? What is total quantity produced when p=10? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that p=10 and that there are 6 Type A firms and 12 Type B firms.
Note -please dont use pen
Let’s assume that in California there is a perfectly competitive industry. If in this perfectly competitive industry a firm is a price taker, then Group of answer choices pressure from competing firms will force acceptance of the prevailing market price. it must be a relatively small player compared to its competitors in the overall market. it can increase or decrease its output significantly affecting overall quantity supplied in the market. quality differences will be very perceptible and will play a major role in purchasers' decisions.