Suppose a competitive firm has the short-run total cost function: STC = 4q2 + 20q + 100 Find the shut-down price of the firm, find the break-even price of the firm and the optimal supply decision of this firm
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Suppose a competitive firm has the short-run total cost function:
STC = 4q2 + 20q + 100
Find the shut-down price of the firm, find the break-even price of the firm and the optimal supply decision of this firm.
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- Consider a competitive firm with a short-run cost function C(q)=100q-q^2+(1/5)q^3+450(a) Suppose that the market price is $205. Find the optimal output. Find the profitor loss at the optimal output. Will the firm stay or shutdown? Why?(b) Suppose that the market price is $105. Find the optimal output. Find the profitor loss at the optimal output. Will the firm stay or shutdown? Why?(c) Suppose that the market price is $205 and there is a tax of $65 per unit produced. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why?Consider a competitive firm with a short-run cost function C(q) = 100q−q2 + 1/5q3 +450. (a) Suppose that the market price is $205. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (b) Suppose that the market price is $105. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why? (c) Suppose that the market price is $205 and there is a tax of $65 per unit produced. Find the optimal output. Find the profit or loss at the optimal output. Will the firm stay or shutdown? Why?A perfectly competitive firm has the total cost curve is given by: TC = 270+13q+0.4q2 . If the market price is $65. What is the firm supply curve (supply equation) Select one: (a) p=13+ 0.8q : p<13 (b) p=13+ 0.4q : p>13 (c) p=13+0.8q : p>13 (d) p= 270 + 13q : P>13
- A competitive firm has the short-run cost function C(y) = 4y3 – 2y? + 10y + 2. At what price will the firm agree to produce in the short-run? What is the shutdown condition for this firm?Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The total cost (TC) function for each firm is TC = 0.05q^2 + 1,080. If the marginal cost (MC) function for the firm is MC = 0.1q, a)what is the profit maximizing quantity for the firm to produce? b)what is the profit for the firm at the profit maximizing point?A competitive firm has the short-run cost function C(y) = 4y3 -2y2 + 10y + 2. a) At what price will the firm agree to produce in the short-run? b) What is the shutdown condition for this firm?
- Imagine a firm in a perfectly competitive market has the short run cost function SRTC=200+10q+0.5q2, where q is the number of units they produce. What is the shut-down price for this firm?Consider a firm with a short run Total Cost (TC) given by TC=2000 + 1000Q - 40Q2 + Q3 . What is the firms marginal cost? What is firm's shut down price?The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 + P. The short run cost function of a representative firm in this market is TC = 150 + 3q2. According to these information Calculate the equilibrium price and quantity for this market. Calculate the profit maximizing output of this representative firm. Calculate the profit of this firm. Analyze this firm’s position in terms of shut down condition. Should this firm operate or shut-down in the short run. If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?
- Suppose the short run market price a competitive firm faces is Birr 9 and the total cost of the firm is: TC = 200 + Q + 0.02Q 2 (A) Calculate the short run equilibrium output and profit of the firm.Hide student question Time Left : Suppose that the additional revenue that comes from the 100th unit is $5, and the marginal cost of the 100th unit is $4.9. Which of the following is the best strategy for a perfectly competitive firm? Group of answer choices a)the firm should not produce the 100th unit because the additional profit from the 100th unit is $0.1 b)the firm must increase production since marginal revenue is greater than marginal cost. c) the firm must decrease production because marginal cost will decrease with production. d)the firm should not increase production since the opportunity cost of the 100th unit is higher than the additional revenue.Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short- 9.3. run total cost curve of the form: 1 STC =9 + 0.2q² + 4q + 10 300 and marginal cost is given by SMC = .01q² + .4q+ 4 a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P). b. Calculate the industry supply curve for the 100 firms in this industry. c. Suppose Q = -200P + 8,000. What will be the shortrun equilibrium price-quantity combination? d. Suppose everyone starts writing more research papers and the new market demand is given by Q = -200P + 11,200. What is the new short-run price-quantity equilibrium? How much profit does each firm make? market demand is given by