Answered: If the price is given what is the…

If the price is given what is the formula equation to fiqure what the maximum profit is for a perfectly competitive firm?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter9: Competition And Monopolies

Section: Chapter Questions

Problem 12AA

See similar textbooks

Related questions

Q: "he following table shows marginal and average total cost schedules for a perfectly competitive…

A: There are two types of market forms: Perfect and Imperfect market form. These markets include:…

Q: There are two restaurants on Bloor selling Ramen noodle bowls - Ramentastic and Best Ramen. They are…

A: Market Supply is the sum total of the quantity supplied by all the firm's in the market.

Q: Use the following graph to answer the next question. MC ATC AVC 1.25 1.05 .90 .80 .65 .60 15 20 35…

A: Given: Market price = $1.25 Output produced at this price = 20 units ATC corresponding to this…

Q: Explain the fact that the short-run supply curve for a price taking firm is that segment of its…

A: The individual supply curve of short-run is the marginal cost of an individual at all of the points…

Q: erfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the market…

A: Since you have asked multiple part question we will solve first three parts for you, we will solve…

Q: A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets…

A: A Perfect Competition is considered as that type of the market structure operating in the economy…

Q: Suppose a competitive firm has the following short run cost function: C(q) = q³-8q² + 30q + 5. a. р…

A: The MC above the minimum point of AVC is called supply.

Q: Give an example of a firm which competes in a competitive market. Explain. Suppose that the this…

A: Perfect competition is a benchmark, or "ideal market," to which real market designs can measure up.…

Q: following graph shows the market demand and supply curves for camisoles that are sold in a perfectly…

A: Below is the edited graph:

Q: Pierce Manufacturing determines that the daily revenue, in dollars, from the sale of x lawn chairs…

A: Given Total revenue function R(x)=0.003x3+0.01x2+0.5x ...........(1) Where x is the…

Q: Use the graph below to answer the following question: MC ATC Mdles APC Cope Cs Asigents 71 los CI…

A: For a perfectly competitive firm price are given.

Q: c. find the profit maximizing level of output for the firm (I've given the marginal cost curve…

A: Answer to part c.

Q: Buppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of…

A: Given: C=200+2q2MC=4qFixed Cost=$200 The profit maximizing condition in competitive market is P=MC…

Q: . Calculate profit for each quantity. How much should the firm produce to maximize profut ? b.…

Q: c. What is this firm's supply curve? Explain. С.

A: Hey. Thank you for the question. As you have asked the solution of part c), I am answering it below

Q: For each price in the following table, calculate the firm's optimal quantity of units produced and…

A: In economics, profit maximization is the short run or long run process by which a firm may determine…

Q: Q1. The graphs of the perfectly competitive market for eggs and an egg producer are the given below.…

A: Hi Student, Thanks or posting the question. As per the guideline, we are providing answer for the…

Q: Mariel runs an ice cream shop. Her short-run cost is given by 300 + 3000 + 3g where q s the number…

A: TC(total cost) has 2 components- TFC(total fixed cost) and TVC(total variable cost). ATC(average…

Q: The graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per…

A: MR and AR curve is downward sloping curve which means more of good only can be sold with low price .…

Q: Under what conditions will a firm shut down temporarily? Explain.

A: One of the classifications of a firm’s costs is fixed cost (FC) and variable cost(VC). Fixed costs…

Q: get decreasing amounts of revenue for each unit of outp D) get increasing amounts of revenue for…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Does a competitive firm’s price equal its marginalcost in the short run, in the long run, or…

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

Q: ATC MC A VC 2.8 10 11 12 Quan ily (per day The graph above shows the cost structure of a perfectly…

A: Perfect competition is an optimal model of market system where complete and symmetrical knowledge is…

Q: Consider the competitive market for sports jackets. The following graph shows the marginal cost…

A: A firm will produce to the point where MC=AVC and can shutdown if there is a loss. It is also to be…

Q: tabie, use the graph to de CRets thiS firm woult in its pront. ASsume that when the price is exactly…

A: The equilibrium of the firm is at point where the Marginal cost curve intersects the marginal…

Q: Q2. a. Create numbers for the table below TC TFC | TVC AVC ATC MC 1 3 4 6 7 9 10 b. Indicate a…

A: a) q TC TFC TVC MC AVC ATC 0 10 10 0 _ _ _ 1 18 10 8 8 8 18 2 31 10 21 13 10.5 15.5 3 45…

Q: For each price in the following table, calculate thé tirm's optimal quantity 8F UHILS quantity,…

A: Shutdown price is the minimum price a business need to justify remaining in the market in the…

Q: Suppose a perfectly competitive firms demand curve is below the ATC curve. Explain the conditions…

A: Since the table is missing, it is difficult to answer for sub-parts 'a', and 'b'.

Q: Consider the perfectly competitive market for dress shirts. The following graph shows the marginal…

A: Firm's short run supply curve is that portion of the marginal cost curve that lies above the minimum…

Q: If the wool industry is perfectly competitive, the market demand curve for wool is and an individual…

A: In a perfectly competitive market, there are many firms. The good is identical so consumers cannot…

Q: & Deriving the short-run supply curve Consider the competitive market for halogen lamps. The…

A: Break-even and Shut down point:- The phase wherein the marginal cost equals the ATC is known as the…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: In long run, if price is below average total cost, it means the firm is not able to pay to its…

Q: The accompanying graph depicts the Marginal Cost (MC), Average Cost (AC), Marginal Revenue (MR), and…

A: Perfect competition refers to the form of market in which there is large numbers of buyers and…

Q: Assume the price of a product in a perfectly competitive firm is $20 and currently it is making…

A: *Given the perfectly competitive price = $20 *Currently the firm is making a minimum loss.

Q: Q1. ĮThe graphs of the perfectly competitive market for eggs and an egg producer are the given…

A: Perfectly competitive market is the market structure where there are large number of buyers and…

Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…

A: Acceptable loss means the loss which has to be accepted.This happens generally in perfectly…

Q: Suppose that the market for black sweaters is a competitive market. The following graph shows the…

A: Answer: According to the above figure if the market price is $15 the equilibrium occurs at point E.…

Q: th point is not on the perfectly competitive firm's short-run supply c Multiple Choice O F

A: Perfectly competitive firm is price taker in the market. The MC curve above the Average variable…

Q: Consider a perfectly competitive market where all firms produce using the same technology. The…

A: Consider the perfectly competitive market where all firms produce using the same technology. The…

Q: Suppose a profit maximizing firm in a perfectly competitive market currently pays their employees…

A: Since it is a perfectly competitive market there is no supernormal profit in the market. Since the…

Q: Consider a market where the consum with no fixed cost and a constant marginal cost perfectly…

A: Given P = 100 – 10q MC = 20

Q: Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the…

A: A perfect competition(PC) market is one with many consumers and sellers producing identical…

Q: 70 60 ATC 50 40 30 20 AVC MC O 10 5 10 15 20 25 30 35 40 45 50 (Thousands of jackets) ANT each price…

A: A competitive firm will produce where P=MC in order to maximize profit as they are price takers.

Q: Consider the price-taker market for sports jackets. The following graph shows the marginal cost…

A: in short run and long run the , the firm should continue the business of not it depends on the…

Question

If the price is given what is the formula equation to fiqure what the maximum profit is for a perfectly competitive firm?

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Step 3: Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How does a competitive firm determine the quantity that maximizes profit?
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
What will be the firms total profit?
Using graph, explain when the firm in a competitive market is in equilibrium?
Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
What is the short run Supply Curve for a competitive firm?