Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost: Marginal Cost: MC=q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 160 – 4P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? 50+9 Which of the following represents the equation for each firm's average total cost? 50+9 Complete the following table by computing the marginal cost and average total cost for q from 5 to 15. Marginal Cost Average Total Cost Complete the following table by computing the marginal cost and average total cost for q from 5 to 15. Marginal Cost (Dollars) Average Total Cost (Units) (Dollars) 10 11 12 13 14 15 The average total cost is at its minimum when the quantity each firm produces (g) equals Which of the following represents the equation for each firm's supply curve in the short run? 50-4 120 – 9 In the long run, the firm will remain in the market and produce if Currently, there are 16 firms in the market. In the short run, in which the number of firms is fixed, the equilibrium price is S and the total quantity produced in the market is units. Each firm produces units. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.) In this equilibrium, each firm makes a profit of S . (Note: Enter a negative number if the firm is incurring a loss.) Firms have an incentive to the market. In the long run, with free entry and exit, the equilibrium price is S , and the total quantity produced in the market is units. There firms in the market, with each firm producing units. are
Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost: Marginal Cost: MC=q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 160 – 4P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? 50+9 Which of the following represents the equation for each firm's average total cost? 50+9 Complete the following table by computing the marginal cost and average total cost for q from 5 to 15. Marginal Cost Average Total Cost Complete the following table by computing the marginal cost and average total cost for q from 5 to 15. Marginal Cost (Dollars) Average Total Cost (Units) (Dollars) 10 11 12 13 14 15 The average total cost is at its minimum when the quantity each firm produces (g) equals Which of the following represents the equation for each firm's supply curve in the short run? 50-4 120 – 9 In the long run, the firm will remain in the market and produce if Currently, there are 16 firms in the market. In the short run, in which the number of firms is fixed, the equilibrium price is S and the total quantity produced in the market is units. Each firm produces units. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.) In this equilibrium, each firm makes a profit of S . (Note: Enter a negative number if the firm is incurring a loss.) Firms have an incentive to the market. In the long run, with free entry and exit, the equilibrium price is S , and the total quantity produced in the market is units. There firms in the market, with each firm producing units. are
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that each firm in a competitive industry has the following costs:
TC = 50+ q?
Total Cost:
Marginal Cost: MC=q
where q is an individual firm's quantity produced.
The market demand curve for this product is:
Demand Qp = 160 – 4P
where P is the price and Q is the total quantity of the good.
Each firm's fixed cost is
What is each firm's variable cost?
50+9
Which of the following represents the equation for each firm's average total cost?
50+9
Complete the following table by computing the marginal cost and average total cost for q from 5 to 15.
Marginal Cost
Average Total Cost
Transcribed Image Text:Complete the following table by computing the marginal cost and average total cost for q from 5 to 15.
Marginal Cost
(Dollars)
Average Total Cost
(Units)
(Dollars)
10
11
12
13
14
15
The average total cost is at its minimum when the quantity each firm produces (g) equals
Which of the following represents the equation for each firm's supply curve in the short run?
50-4
120 – 9
In the long run, the firm will remain in the market and produce if
Currently, there are 16 firms in the market.
In the short run, in which the number of firms is fixed, the equilibrium price is S
and the total quantity produced in the market is
units. Each firm produces
units. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.)
In this equilibrium, each firm makes a profit of S
. (Note: Enter a negative number if the firm is incurring a loss.)
Firms have an incentive to
the market.
In the long run, with free entry and exit, the equilibrium price is S
, and the total quantity produced in the market is
units. There
firms in the market, with each firm producing
units.
are
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