Market demand is given as QD = 220 - 3P. Market supply is given as QS = 3P + 40. Each identical firm has MC = 0.3Q and ATC= 0.2Q. What is a firm's average total cost? $5 $20 $18 $30
Q: Suppose the firm is producing 150 units of output and its fixed cost is $975. Then its variable cost…
A: When firm produced and sells 150 units of output, its average total cost is $24.50 And its fixed…
Q: The firm has total fixed costs of $9 and a constant marginal cost of $3 per unit. The firm will…
A: Here, total fixed cost of a firm is given as $9 and constant marginal cost is given as $3 per unit.…
Q: A profit - maximizing firm in a competitive market is currently producing 100 units of output. It…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: A price-taking firm in a competitive industry of a good that is continuously divisible (like sand)…
A: The profit maximization problem for a price-taking firm involves finding the quantity that maximizes…
Q: Suppose the market price (P*) is $3.00 per unit and the profit-maximizing output level (Q*) is 2,500…
A: Economic Profit = Total Revenue - Total cost total cost = Total fixed cost + Total variable cost or…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: Given: Total Cost of two plants are as follows: TC1=5Q1+0.1Q12TC2=2Q2+0.1Q22 Demand function:…
Q: Joshua owns a small boat and catches lobster off the coast of Maine. His weekly cost function is…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Suppose a pharmaceutical firm just invents a new drug to treat mad cow disease and this is the only…
A: The total revenue , marginal revenue, total cost marginal cost and average total cost is shown in…
Q: A local microbrewery has total costs of production given by the equation TC=500+10q+5q^2. This…
A: Total cost equation,TC=500+10q+5q2Marginal cost equation, MC=10+10qDemand function, Qd=105-12P
Q: Suppose consumers see coffee as an undifferentiated good and that there are hundreds of coffee shops…
A:
Q: A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an…
A: Total revenue and profit: The demand function reflects the inverse relationship with the price of…
Q: Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by…
A: Cost:It is the total expenditure incurred in the process of production. Cost has two types: fixed…
Q: The following equation describes a firm's total cost. TC = 10 + 10Q +5Q2 a. If the firm is a price…
A: Production is the process of manufacturing goods and services to suit the needs of a varied range of…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: Profit maximization is that the short- or semipermanent method through that a corporation determines…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30q2 − 12.85q +…
A:
Q: C(q)=100+10q. What is the profit-maximizing level of output? What profit does the firm earn at this…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: (Enter your At a price of $18 per CD, a firm sells 40 CDs. If the slope of the demand curve is -…
A: Marginal revenue is the revenue generated from the sale of an additional unit of output. Total…
Q: Suppose a firm's total cost and marginal cost are given by TC = 192 + 10Q + 3Q² and MC = 10 + 6Q.…
A: Average total price is called the sum general of all manufacturing prices divided with the aid of…
Q: The market demand function for the output in this market is given by: Q = 1848 - 2P If there are…
A: JointJuice is a prepackages supplement-producing firm. Suppose the firm produces prepackaged…
Q: Market demand is given as QD = 75 - 2P. Market supply is given as QS = 2P + 15. Each identical firm…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: please find the answer below.
Q: Suppose firm A’s total cost function is given by c(q) = 3q^2 + 95. If the equilibrium price is $24,…
A: The firms and businesses tend to operate in the market with the motive of earning high amount of…
Q: Assuming that your firms total cost function is, TC (Q) = $21,128+4Q profits when the prices are $7,…
A: In the question, the total cost is TC = 21128 + 4Q and prices are $7, $9, and $11. Now we are…
Q: A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 40,000 + 45Q, respectively.…
A: The aim of firms is to maximize the profits. The profit is maximized at the level of output at which…
Q: If a firm's marginal cost is greater than its average variable cost, what can be inferred about the…
A: To resolve this inquiry, it's vital to initially understand what marginal cost (MC) and average…
Q: firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: Question (4): Consider a firm, where there is competition, looking to maximize its profits and the…
A: The problem outlined is a scenario analysis for a firm operating in a competitive market aiming to…
Q: The relationship between the firm's average variable, average total, and marginal cost curves above:…
A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…
Q: A firm's profit function is A(a) = R(q) - C(a) = 160q - (410 + 40g + 10q²). What is the positive…
A:
Q: A firm has revenue given by R(q) = 280g - 30 and its cost function is C(g) = 500 + 10q. What is the…
A: Profit refers to the difference between total revenue and total cost. Profit is maximised at a point…
Q: Suppose the total cost to produce quantity q is TC(q) = 10 + q^2/10, and hence, marginal cost is…
A: Given : TC(q) = 10 + q^2/10 MC(q) = q/5 p = 10
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: Given TC1 = 5q + 0.1q2 Demand schedule = q = 160 – 10p MC1 = dTC/dq = 5 + 0.2q TR = P * q Price…
Q: Your firm “We Work Eot U" rents access to shared open office spaces for a price of $540 per year.…
A: TR= 540Q TC= 80000+40Q+0.5Q2 Price= $540 per year In perfectly competitive market, for profit…
Q: Assume a competitive firm faces a market price of $100, a cost curve of: C= 1.00g + 25g + 1,600 and…
A: Given:- Price=$100 C=1.00q2+25q+1600 To calculate:- Production to maximize per unit profit=?…
Q: Suppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by market…
Q: A manufacturer of upholstery can sell 2121 yards of fabric at a price of $3.11$3.11 per yard. If…
A: At the price $3.11, the total sale is 21 yards of fabric At the price $1.85, the total sale is 35…
Q: A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may…
A: The objective of the question is to estimate the firm's demand function, find the firm's revenue…
Q: The cost function for Acme Laundry is C(q)=50+30q+q2, where q is tons of laundry cleaned.…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: average total cost
A: Market demand encompasses the total quantity of a good or service that consumers in a specific…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A:
Q: Problem 2.5 The cost function for Acme Laundry is TC(q) = 10 + 10q + q^2 so its marginalprod…
A: The sum of all costs, both fixed and variable, is known as the Total cost. The cost per unit…
Q: Urban Decay Cosmetics produces q units of setting sprays and their short-run total cost is given by…
A: ATC=TC/Q
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) = 1/30q2 − 12.85q +…
A: Solution - Given in the Question - Total Revenue curve of a firm R(q) = 40q -12q2…
Q: A firm's variable cost is VC(Q)=4Q2. All of the fixed cost is sunk. Suppose the market price is $24.…
A: 1. C) 1 and 2 only
![Market demand is given as QD = 220 - 3P. Market supply is given as QS = 3P + 40. Each identical firm has MC =
0.3Q and ATC = 0.2Q. What is a firm's average total cost?
$5
$20
$18
$30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d980be4-f2cd-4209-9336-1b074441a8fb%2Fd9a7984f-1a36-4c75-a696-27312f40b181%2Fnkydqam_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps with 8 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- An upstream firm (U) sells an input to a downstream firm (D) which resells it to consumers. The marginal cost of U is 4. Each unit is sold by U to D at a transfer price r. Requirement final is p = 12 - y. a) Suppose U and D are separate firms. Find r, y and p. b) Suppose U and D are one integrated firm. Find p and y. c) Suppose the firms are not integrated, but firm U uses a two-part tariff: it requires payment of r for each unit sold to D; in addition, it requires payment lump sum of T. Find the value of r that U will choose. Find the minimum and maximum values by T. d) Suppose the firms are not integrated, but U imposes a resale price control on firm D. Find the value of r that U will choose, and the constraint that it will impose on the price final pSuppose a firm has two plants. The costs are: TC = 30 + TC1 + TC2..TC1= 10Q1 + Q12 .TC2= 10Q2 + .5Q22 .The firm’s demand is Pm = 80 - .5Qm.Find the firm’s profit-maximizing P* and Q*, outputs allocated to plants 1 and 2 and overall profit.The profit maximizing profit is ?A Los Angeles firm uses a single input to produce a recreational commodity according to a production function f(x)=4x1/2, where x is the number of units of input. The price of the commodity is $100 per unit, and the input cost is $50 per unit. The fixed costs are zero. A: Write down the firm’s profit function. C:Find the profit maximizing amounts of input and output. What is the maximum profit? C:Suppose that the firm is taxed at $20 per unit of its output (note it is a quantity tax) and the price of its input is subsidized by $10 per unit. What is the new input and output levels? What is the new maximal profit?
- Market Representative Firm MC АТС $8 AVC A $6 MR = P %3D D1 20,000 100 125 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. When the market reaches its Long Run Equilibrium, we should expect the firm to produce and the equilibrium quantity in the market to be 125; less than 20,000 125; more than 20,000 100; less than 20,000 O 100; more than 20,000 Pricea) Find the long run equilibrium price. Find the minimum efficient scale of the typical firm. Find the typical firm’s average cost when it operates at minimum efficient scale. In the long run, what price will prevail in this market? In words, clearly justify your answer. Suppose demand is QD = 3,200 – 100P. (b) Explain why you expect the number of firms in this market to be fifty-five. In this market, what is the short run supply function of the typical firm? What is the short run market supply function? Suppose the local government introduced a $90 licensing fee that raised the fixed cost from $160 to $250. c) Would the introduction of the licensing fee affect the short run equilibrium price or quantity? Justify your answer? Clearly explain why you expect that in the long run fewer larger firms will operate in this market. After the introduction of the licensing fee, what is the new long run equilibrium price? How many firms will survive in this market?2. (Measures of Risk Aversion in EUT) In class we discussed the Arrow-Pratt coefficient of absolute risk aversion: r(x): Another measure of risk aversion that is often used is the Arrow-Pratt coefficient of relative risk aversion: q(x) = u₁(x) = 1- ep • U₂(x) = 21-P-1 1-p • Uz(x) = ln(x) == • u₁(x) = ax • u₁(x) = x-ax² u"(x) u'(x) Both measures capture different aspects of risk aversion. One way to see the difference is to consider an agent who has a budget to allocate to a portfolio of a safe asset (a bond) and a risky asset (a stock). The higher r(x), the more dollars the agent will allocate to the bond. The higher q(z), the bigger the share of the agent's portfolio that will be allocated to the bond. 1 Tu" (x) u'(x) The questions below refer to the following utility functions, which are often used in applications. Here is the agent's income or wealth, and p and a are parameters: (a) Calculate r(x) and g(x) for each of the above utility functions. (b) Are r(r) and q(z) increasing,…
- Firms in a competitive market can sell as much as they like at a market price of $16. The cost function for each firm is TC = 50 + 4Q +2Q². The associated marginal cost function is MC = 4 + 4Q and the point of minimum average cost is Q = 5. How much profit is each firm earning?PakPerfect Inc. estimates equation of its total costs of production as TC = 500 + 10Q + 5Q2 and market demand for its product as Qd = 105 – (1/2) P, where Q is quantity in units and P is price in Pak$. Write the equations of the firm’s costs, as a function of Q: Average Total Cost ATC Average Variable Cost AVC Average Fixed Cost AFC Given above costs can you determine what will be the firm’s production in Stage 1? What is the breakeven price and breakeven quantity for this firm? What is the shutdown price and quantity for this firm? Draw the firm’s costs in a graph as per your determination in (a). Label the breakeven and shutdown price and quantity using information in (b) and (c) above. Given the market price of Pak$ 50 how many units should the firm produce? how many firms are competing in this market in short-run? How many firms will be in the industry in the long-run? How do you interpret the profit or loss condition of PakPerfect? Use a two-panel graph of the Market and…4. A vertically integrated automobile company has an upstream engine division and a downstream assembly division. The demand for the company's cars is given by Q = 20-P. Each car requires one engine. The downstream division's total cost of assembling cars is TCD(Q) = 4Q. The upstream division's total cost of producing engines is TCv (Q) = Q². (a) Suppose that there is no outside market for engines. What is the price and quantity of cars produced by the company? (b) Suppose that there is no outside market for engines. What should be the transfer price for engines? [Hint: the transfer price of an engine should equal the marginal cost of engine production at the optimal quantity.] (c) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the price and quantity of cars produced by the company? (d) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the quantity of engines that the company buys or…
- A firm's profit function is T(q) = R(q) – C(q) = 40q – (35 + 20q + - 10q²). What is the positive output level that maximizes the firm's profit (or minimizes its loss)? What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run? The output level at which the firm's profit is maximized is q =. (Enter your response as a whole number.) At this level of output, the firm's revenue (R) is $ (Enter your response as a whole number.) At the profit-maximizing level of output, the firm's variable cost (VC) is $ - (Enter your response as a whole number.) Profit (T) is $ (Enter your response as a whole number and include a minus sign if necessary.) The firm should produce in the short run.Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…A manufacturer of mountain bikes has the following marginal cost function: C′(q)=700/0.5q+2 where qq is the quantity of bicycles produced. When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook. a) If the fixed cost in producing the bicycles is $3200, find the total cost to produce 35 bicycles.Answer: $ b) If the bikes are sold for $250 each, what is the profit (or loss) on the first 35 bikes?Answer: $ c) What is the marginal profit on bike number 36?Answer: $
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)