Firms with market power Select one: a. face downward sloping marginal cost curves. b. maximize profit but fail to maximize social surplus. Oc. produce where P = MR = MC. Ⓒd. face downward sloping average cost curves.
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![Firms with market power
Select one:
a. face downward sloping marginal cost curves.
b. maximize profit but fail to maximize social surplus.
Oc. produce where P = MR = MC.
Ⓒd. face downward sloping average cost curves.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7187e789-85c5-4352-a5e8-d27363b78fa2%2Fc7c673bc-08ad-4fba-a39e-9f305180dff6%2F3gopitq_processed.png&w=3840&q=75)
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- Suppose a perfectly competitive market has 50 firms, each with supply curve P=50+100Q. The market demand curve is given by P=650-4Q. How much is the individual firm's producer surplus in the short run? a. 400, b. 250, c. 200, d.1001. Suppose you are the owner of a burger restaurant that has a cost of production given by C = 400 + 0.02q^2 where q is the number of burgers produced per day. Assume that the market for burgers is perfectly competitive. a. If the market price for a burger is $10, how many burgers should the manager plan to produce in a day? b. What is the profit level? Is this the maximum profit that the restaurant can make per day? c. What output will the firm produce if the price of a burger goes down to $8?Suppose that the quantity demanded for Windows 11 operating system is given by q = 320 − 2p, where p is the price of the Windows 11. Let us assume that the total cost of producing q units of Windows 11 is given by C(q) = 500 + 10q. a. Find marginal revenue, marginal cost, and average cost in terms of quantity q produced. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve. b. What is the price that Microsoft charges for Windows 11? How many Windows 11 will Microsoft sell? How much profit it will make? Identify Microsoft’s profit maximizing price and quantity on your graph; and show the amount of profit that Microsoft will make. Please show all work and graphs, thank you!
- In a purely competitive market at its long-run equilibrium, which of the following is not true? a The marginal benefit of the last unit of the product equals the marginal cost of producing that unit. b The maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit. c Price equals marginal cost, and they are equal to the lowest attainable average cost of production. d The combined amount of consumer and producer surpluses is at its minimum possible.Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin (her only product) is $3. If Lily's marginal cost function is given by MC=0.1q: (i) Lily's profit-maximizing level of output is _______ (ii) Lily's variable profit is _______ (iii) The producer surplus is _______ If Lily also has a fixed cost of $50, then: (iv) her total profit is _______ Assuming Lily cannot avoid the fixed cost, should Lily continue to produce orshut down?Q2. Cournot Model (production competition model) Consider a Cournot model. The market demand is p=180-q1-q2. The marginal cost for both firms is 30 and there are no fixed costs. A. Derive each firm's best response function. B. Find the Nash equilibrium. C. Find the equilibrium price and each firm's profit. D. Find the consumer surplus and the social welfare at equilibrium.
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- Brand X is one of many firms in a competitive industry where each firm has a constant marginal cost of 2 dollars per unit of output. If marginal cost for Brand X rises to 4 dollars per unit and marginal costs of all other firms in the industry stay constant, by how much does the price in the industry increase? a. 2 dollars b. 1 dollar c. 0 dollar d. 2/n, where n is the number of firms in the industry e. None of the above.Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 3 + Q. If the demand curve for this industry is P= 12 1,000 ? what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter? Instructions: Round your answers to the nearest whole number. Producer surplus: $ Consumer surplus: $What type of equation is this? TR - PS A)Producer Cost B) Deadweight Loss C) Consumer Surplus D) Profit
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