Suppose a perfectly competitive industry has 300 identical firms in the short run. Each firm faces a marginal cost curve given by MC = 2 + 0.1Q. If the price in the market is $7, what is the individual firm's supply quantity? A) 30 B) 50 C) 40 D) 20

Suppose a perfectly competitive industry has 300 identical firms in the short run. Each firm faces a marginal cost curve given by MC = 2 + 0.1Q. If the price in the market is $7, what is the individual firm's supply quantity? A) 30 B) 50 C) 40 D) 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A competitive firm's total cost is TC(Q)=3Q2+7Q+35 when the output level is Q. Accordingly, its…

A: In a competitive market, the equilibrium occurs at, P=MC.

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

Q: A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q,…

A: In perfect competition there are large number of firms selling identical goods.

Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $110…

A: Note: Since you have posted a question with multiple sub-parts, we will provide the solution only…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: Given: TC= 599+17q+q2 MC=17+2q Q = 517-p Market price = $95

Q: A company active in a free competitive market with a market price equal to 20 per unit has a total…

A: Large number of buyers and sellers: No single buyer or seller has a significant enough market share…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Q: There are 240 firms of type A and 180 firms of type B in a perfectly competitive market. On one…

A: Equilibrium in the competitive market is reached where quantity demanded is equal to quantity…

Q: A firm’s marginal cost is MC(q)=10+6q. For which prices does the firm shut down? Find a formula for…

A: To determine at which prices the firm will shut down, we need to find the minimum price that covers…

Q: The market for paperback detective novels is perfectly competitive. We have two types of book…

A: Given Information Supply curve for Small Press publisher's P=76+5Q. Large Press publisher's…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: The total cost function of a firm in a perfectly competitive market is given by: TC =3Q2+ 2Q + 10.…

A: Here, the total cost function of a firm, which operates in the perfectly competitive market, is…

Q: Each firm in a competitive market has a cost function of: so its marginal cost function is The…

A: In a competitive market , The firm will produce at point where MC = P Equilibrium price is the…

Q: The market for paperback detective novels is perfectly competitive. Market Supply is given by…

A: Given Market supply function: P=5+3Q ... (1) The marginal cost of the last unit sold is…

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: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: TC=712+q2Now,AC=TCqAC=712q+q

Q: Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 11 + 5q².…

A: We first derive the individual supply curve, Cost firm bears, C(q)=11+5q2 Firm will sell at the…

Q: A firm faces the market demand curve: P=90-Q/4 where P = price and Q = output The firm has the total…

A: Given:P=90-Q4TC=1/4Q2-6Q+40 Now,TR=P×QTR=90-Q4×QTR=90Q-Q24

Q: Which of the following is not true for a competitive market? Group of answer choices Firms can earn…

A: Answer to the question is as follows:

Q: Suppose a firm faces the following cost function: C(q) = 36 + 16q – 8g² + 2q° -

A: Given cost function:C(q)=36+16q-8q2+2q3

Q: In a competitive market, the current equilibrium price is $110 per unit. A firm that produces Q…

A: Given: Price(P)=$110 per unit

Q: The demand curve and supply curve for carpet cleaning in the local market are currently as follows:…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Suppose that the current price per unit of the good is 10 pounds. A perfectly competitive firm faces…

A: Introduction A perfectly competitive firm is where there are large number of firms available in the…

Q: 1. In a perfectly competitive and constant cost industry, all firms are identical. If the market…

A: TC = q3 - 20q2 + 120qQd = 600 - P

Q: The marginal cost of a competitive firm is MC(Q)=4Q+7. The market price is 80. Suppose the current…

A: In a competitive market, the equilibrium occurs at a point where P=MC. where P is the market price…

Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…

A: Perfect competition is a concept in economics that represents an idealized market structure in which…

Q: Consider a competitive firm with a short-run cost function C(q)=100q-q^2+(1/5)q^3+450 (a) Suppose…

A: We will use short run profit maximisation condition for perfectly competitive market to solve this…

Q: Questions 3~5 are a set of questions. Here is the table for the questions. Output Total Cost 0 $0 1…

A: Businesses in a market with competition have the freedom to enter and exit at any time. This implies…

Q: A firm in a competitive market has the following market price P = 5000, and the following marginal…

A: In perfect competition, There exists a large no. of buyers and sellers. The firm maximize it's…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…

Q: Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $22. The…

A: Given Price $22TC = 0.1q^2 + 120. MC = 0.2q Profit Maximization is when the MC = MR

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Under perfect competition, an individual firm is a price taker in the market. All firms sell a…

Q: Suppose the market for cat food is perfectly competitive, with each firm having the total cost…

A: At the point when market price = MC, a profit-maximizing fully competitive company produces. In…

Q: (9) = 200 + q*/2. %3D hat is each firm's supply function? =p+25 = p- 25 ose the market is in a…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: What is the profit maximizing level of output for the firm? How much profit is this firm earning?…

A: Profit maximizing level of output is achieved where price and quantity are equal i.e., in…

Q: Suppose you are managing a firm in a perfectly competitive industry. Your demand, supply and cost…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: A firm has short-run costs such that the lowest average variable cost it has for any quantity…

A: A competitive firm optimizes its output at the point where marginal revenue is equal to the marginal…

Question

Suppose a perfectly competitive industry has 300 identical firms in the short run. Each firm faces a
marginal cost curve given by MC = 2 + 0.1Q. If the price in the market is $7, what is the individual
firm's supply quantity?
A) 30
B) 50
C) 40
D) 20

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a homogenous product) is given by the following equations respectively: Qd = 50 − P Qs = 1 + 3P The typical firm’s total cost is given by the following equation: TC = 10 + 0.5Q2 + 5Q What is the profit maximizing level of output for the firm? How much profit is this firm earning? Show it graphically Is it short run or long run? Explain!
A firm in a perfectly competitive industry has fixed costs of FC = 3 and average variable costs of AVC = 2 + 8q. a) What are the firm’s variable costs (VC)? b) What is the firm’s total cost function? c) If the price is $18, how much does the firm supply? d) Does the firm continue to supply this quantity in the short run? e) Suppose there exists a standard market demand function from consumers (downward sloping). Please provide logical discussion about how the market achieves short-run equilibrium. f) Suppose the market demand was given by Qd(p) = 50 – p. Suppose further that a sales tax of £1 per unit is imposed in the market. Calculate the deadweight loss resulting from this tax. Assume the market consists of 100 firms with identical cost functions.
Glowglobes are produced by identical firms in a perfectly competitive market. There are 22 firms in the market. Each firm's Total Cost function is TC=284+3q+q^2 and Marginal Cost function is MC=3+2q. Market demand is Q=326-P. What is the short-run equilibrium market price?
In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price (P), marginal cost (MC), and average total cost (ATC)?
In the short run, a perfectly competitive firm A) can vary all its inputs. B) can make only zero economic profit. C) can possibly make an economic profit or possibly incur an economic loss. D) produces the level of output that sets the average total cost equal to the market price. E) can change only its fixed inputs.
You are the owner of a firm in a perfectly competitive market. The market supply and demand are given by the equations: D: P=8 - 0.1Q S: P = 0.2 + 0.05Q Your firm's marginal cost curve and total cost curve are: MC = 0.1 + 0. 2q TC = 20.425 + 0. 1q +0.1q? What is the firm's profit (positive) or loss (negative) ? O 2.2 (profit) O 18.225 (profit) O -18.225 (loss) -2.2 (loss)
Question a) The average cost function of a competitive firm is AC= 5/Q+5+9*Q. The optimal quantity is: 10. How much is the profit? b) The average cost function of a competitive firm is AC= 3/Q +8 +9*Q The optimal quantity is: 3 How much is the profit? c) The marginal utility of x is 100-5x, and that of y is 200- 6y. The price of x is 1, the price of y is 2, the income of the consumer is 100. How many of y is there in the optimal basket?
Assume a competitive firm faces a market price of $150, a cost curve of: C + 6q + 1,500, and a marginal cost of: MC = q² + 6. What is the firm's profit maximizing output level? units. (round your answer to two decimal places)
Glowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in the market. Each firm's Total Cost function is TC=396+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=484-P. What is the profit earned by each firm in the short-run?
A competitive firm's total cost is TC(Q)=3Q2+2Q+47 when the output level is Q. Accordingly, its marginal cost is MC(Q)=2*3*Q+2. The market price is P=14. You are told that the firm will not shut down in the short run. Please find its profit at the optimal output level.
a) 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?
In the US cotton market, each farm having the cost function c(q)=0.5q^(2)+ 10 q+162 where q is the quantity of cotton in tons produced by each farm. The market demand curve is given by Q^(d)=10,400-50 p. Suppose the government gives each farm a subsidy of $8 per ton. Calculate the long-run market price assume the market is perfect competition. $20 $25 $30 $35 With all steps clearly