Question 3 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the amount of the good produced in a competitive equilibrium in this economy? 7 4 6 3 5
Q: Each of 6 identical firms in a competitive market has a cost function: C= 30 + 2q? and the market…
A: There are 6 identical firms in the perfectly competitive market. Each firm has following cost…
Q: F. Highgarden was the seat of House Tyrell and is the regional capital of the Reach, which is the…
A: Total cost is the amount of expenditure occurred on the production of goods and services. The…
Q: Three firms are producing a good and are competing in prices: consumers buy from the firm that has…
A: The question is based on the Bertrand model of Oligopoly.
Q: 3. Suppose that for a product in a competitive market the demand function is p = 1200 – 2x and the…
A: Given Demand function p = 1200-2x ....... (1) and supply function p = 200+2x…
Q: onsider a market of 6 firms that compete through production. Demand is given as P = 220 – 2Q. Each…
A: An oligopoly is a marketplace structure characterized by a small number of large firms dominating…
Q: Question 1 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: There is monopoly in the market because there is single seller. The profit maximizing quantity in…
Q: 3. Suppose there are two firms competing in a market. Both firms have the cost function c(x) =10x/2…
A: There are four types of market structure; perfect competition, monopoly, monopolistic competition…
Q: Consider a market with two firms and a demand function p = 1 - Q. Note the price and quantity cannot…
A: Given that; The demand function for the market is given by p=1-Q, where p is the price and Q is the…
Q: 1. There are two firms, A and B, on a competitive market. Firm A's total cost is given by:…
A: 1.In the competitive market, the supply curve of the firm is the (marginal cost) curve of the firm.…
Q: 41. Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive.…
A: At equilibrium price, quantity demanded of a good or service is equal to quantity supplied. There is…
Q: Suppose perfect competition prevails in the market for hotel rooms. The current market equilibrium…
A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…
Q: Define economic efficiency. Is a firm economically inefficient if it can cut costs by producing…
A: Economics deals with the allocation of limited resources to maximize the welfare of the economy. It…
Q: . Suppose there are only two firms in an industry selling an identical product where the quantity…
A: Firm competes on the basis of output in the Cournot model. While in the Stackelberg model, the one…
Q: A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long-…
A: Perfect Competition Some Preliminaries: Long-run equilibrium is characterized by zero economic…
Q: Q1. Suppose perfect competition prevails in the market for hotel rooms. The current market…
A: Maximization of net benefits is when marginal cost equals marginal revenue.
Q: 3. Demand for a product called widgets is given by p= 200 - 2Y. Supply is given by p = Y/2 + 5,…
A: Externalities occur when there is an indirect impact on a party that is not directly related to the…
Q: 7. A honey farm is located next to an apple orchard and each acts as a competitive firm. Let the…
A: In economic matters, an externality or external expense is a circuitous expense or advantage to a…
Q: Imagine a market with demand p(q) = 100 − q. There are two firms, 1 and 2, and each firm i has to…
A: Imagine a market with demand . There are two firms, 1 and 2, and each firm i has to simultaneously…
Q: consider a market with a large number of firms, an upward sloping supply curve S0, and a downward…
A: Question - Now suppose that scientists discover that this particular product has a significant…
Q: PQ4.2 Case: A firm is operating in a competitive market. Your Cost of Production is given by C = 200…
A: TThe condition for competitive market, profit maximizing condition is Price = Marginal cost100 = 4q…
Q: The graph above illustrates the electricity market. Consider market competition between firms where…
A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…
Q: 1. The cost function for any potential firm in a manufacturing industry is C(y) = 2 + 8y + 2y? (if a…
A: In long run a perfectly competitive firm produces at following point in equilibrium. P = MC = AC…
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: The tables (below) show the willingness to pay by three (competitive) consumers for additional units…
A: An market is a collection of systems, institutions, processes, social relationships, and…
Q: The demand in a market is given by D(p) = 10 - p². There are 6 ompetitive sellers each with a cost…
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: Use the following to answer questions (1) - (14): Suppose the local market for flat glass,…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 2. Consider a market for a homogenous good with the following inverse demand function: P = 52 – 2Q…
A: we have P=52-2Q and Total cost C(Q)=4Q so π(profit) = TR-TC=PxQ-TC=(52-2Q)Q-4Q=52Q-2Q2-4Q Thus…
Q: Question 5 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: Consumer surplus refers to an overall benefit that receives the consumer by paying a price lower…
Q: Question 2 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: Producer surplus is an advantage taken by the producer due to the variations in the price received…
Q: a) What is more in your company's interest to compete or cooperate with the rival company? Keep in…
A: Optimal production strategy refers to the level of output that, given a company's costs and the…
Q: Question 2 a) The supply curve of a product is Q = 10P¹/³. Find the producer surplus when P=8. b)…
A: The supply curve refers to the curve that shows how the price of a good and its quantity varies. For…
Question 3
Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the amount of the good produced in a competitive equilibrium in this economy?
7
4
6
3
5
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- 3. What is the market equilibrium quantity?Suppose that a competitive firm's marginal cost of producing output q (MC) is given by Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ (Enter your response rounded to two decimal places.) Suppose that the average variable cost of the firm (AVC) is given by MC(q)=3+2q. AVC(q)=3+1q. Suppose that the firm's fixed costs (FC) are known to be $50. Will the firm be eaming a positive, negative, or zero profit in the short run? In the short run, the firm's profit will be positive Enter your answer in each of the answer boxes.PQ4.2 Case: A firm is operating in a competitive market. Your Cost of Production is given by C = 200 + 2q², where the Level of Output is (q) and the Total Cost is (C). The Marginal Cost of Production (MC) is 4q; the Fixed Cost (FC) is $200. Given: C=200+2q² q=Level of Output C = Total Cost MC = 4q| FC = $200 Questions: (i) If the price of watches is $100, how many watches should you produce to Maximize Profit? (ii) What will the Profit Level be? (iii) At what Minimum Price will the firm produce a Positive Output?
- Please help me with this question correctly. Thank youThe following relations describe monthly demand and supply for a wheat Qp = 32 – P Qs = P- 16 where P is the price (in cents) per pound and Q is the quantity (in millions) of pounds. What is the equilibrium price and output level? (a) Suppose that wheat industry is a perfectly competitive industry consisting of a large number of identical firms. For a typical firm, the cost function is TC = 100 + 1000q². (b) Identify the marginal revenue of a typical firm in the industry. (c) (d) Find the profit maximizing level of output produced by a firm. If all firms are profit maximizing, then how many firms can operate in this industry?497 + 4q3, A firm in the competitive market produces two goods, 1 and 2. The firm face a cost function C(q1, 92) where q1 and q2 are the quantity of good 1 and 2 produced by the firm respectively. The price of good 1 is 8 and the price of good 2 is 4. What is the profit maximizing production quantity for the firm? 1 a. q1 = 1, 92 = b. q1 = 1, q2 = 1 c. 91 = , 92 = 1 d. q1 = 0, q2 = 0
- Question 12 Consider a market where the consumer demand is given by P-100-10*Q and where there is a firm with no fixed cost and a constant marginal cost equal to 20. Suppose that the firm operates in a perfectly competitive market. What will be the quantity produced by the firm in the perfectly competitive equilibrium?Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C= 300 + 29°, where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $300). If the price of a watch is $80, how many watches should you produce to maximize profits? You should produce watches. (Enter your response as an integer.) What will the profit level be? Profit will be $ (Enter your response rounded to two decimal places.) At what minimum price will the firm produce a positive output? In the short run, the firm will produce if price is greater than $ per watch. (Enter your response as an integer.)Let us consider an economic sector characterized by the following data. The (inverse) demand function is p = 20 -2g with q the quantities produced by the firms in the sector and p the price. The total cost of production for any firm in the sector is: CT(a) = q* - 4g +5 a) First, assume that there is only one firm, firm 1, in the industry. Calculate the price, quantity produced and profit of firm 1 in a monopoly situation that wants to maximize its profit b) Firm 1 seeks to deter the entry of another firm, firm 2, into its market through a sustainable monopoly strategy. Calculate the equilibrium price, quantity and profit of firm 1 given this strategy
- Question 2 a) The supply curve of a product is Q = b) The number of kilograms Q of tomatoes harvested from a field in a day is given by the production function, Q = 150L¹/³. Find the profit maximizing number of people to employ on this farm if each kilogram of tomatoes is sold for 20 cedis, and each worker is paid an average wage of 40 cedis per day. c) A firm is breaking even in a competitive market. Is this firm making zero profits? Explain d) A car wash business washes 11,000 cars per year. The price charged per vehicle washed is 10 cedis. The total cost (total economic cost) of washing these 11000 cars each year is given as 120,000 cedis. Included in this total cost is a fixed cost of 15 percent of the 160,000 cedis capital provided by the financier of this car wash. That is, the financier could have earned 15 percent interest on this capital in the money market if he had not used it to set up this car wash. Is this car wash making profits at the end of the year? Compute the…A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long- run cost function C = 100 + q². As a result, a firm's marginal cost function is MC = 2q. In the long-run competitive equilibrium, (a) How much does the firm produce? (b) What is the equilibrium price? (c) If the market quantity demanded at the equilibrium price is Q = 2500, how many firms are in the market?= = 41. Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as P 60Qd; the supply curve can be expressed as P 0.5Qs. Quantity is expressed in millions of boxes per month. What are the amount traded and the price for this market? a) Q = 40; P = 20 b) Q = 20; P = 40 c) Q = 30; P = 30 d) Q = 30; P = 15