Suppose that each firm in a competitive industry has the following costs:Total Cost: TC = 50+ 1/2q²Marginal Cost: MC = qwhere 9 is an individual firm's quantity produced.The market demand curve for this product is:Demand D = 160 - 4Pwhere P is the price and is the total quantity of the good.Each firm's fixed cost is $What is each firm's variable cost?50+ 1/1/1919²129 Complete the following table by computing the total cost and average total cost for each quantity produced.Quantity Total Cost Average Total Cost(Pies)(Dollars)(Dollars)123456The price of a pie is now $11.At a price of $11,a profit of $True or False: The market is in long-run equilibrium.Truepies are sold in the market. Each producer makesFalseSuppose that in the long run there is free entry and exit.In the long run, each producer earns a profit of $producer makespies, so there areThe market price is $producers operating.pies, so there areAt this price,producers in this market, each makingpies are sold in this market, and each The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:5678910115621213Each producer in the market has a fixed cost of $9 and the following marginal cost:Quantity(Pies)12348007006005004003002001000Marginal Cost(Dollars)24681012ky

Introduction of concept: Firm total cost is equal to the sum of fixed cost and the variable cost. The fixed cost of the firm is independent of the level of output. Fixed costs remain the same for a period of time. For example in the short run, inputs such as capital are fixed so the rent of this fixed capital is fixed cost. The variable cost depends on the level of output produced. Variable cost changes when output changes. Average total cost is the total cost per unit of output. Note: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.” Given Total cost function: TC=50+12q2 ......(1)Part a: Fixed cost is the cost at q =0 at q=0, TC(0)=50+12(0)2 TC(0)=50So fixed cost is $50 The fixed cost is $50Part b: Since Total cost = Fixed cost +variable cost So variable cost = Total cost - fixed cost VC=50+12q2-50VC=12q2 Each firm's variable cost is 12q2Part c: Total cost for q=1 TC(1)=50+12(1)2 TC(1)=$50.5 Average total cost for q=1, ATC=50.5/1 =$50.5 Total cost for q=2: TC(2)=50+1222TC(2)=$52 Average total cost for q=2, is $52/2=$26 And so on... Quantity q Total cost TC Average total cost ATC 1 50.5 50.5 2 52 26 3 54.5 18.16667 4 58 14.5 5 62.5 12.5 6 68 11.33333

Business

Economics

Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 19² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand QD = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? ○ 50+ / 9 19² O q

Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 19² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand QD = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? ○ 50+ / 9 19² O q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in the market. Each firm's Total Cost function is TC=538+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=488-P. What is the quantity produced by each firm in the short-run?
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.
Consider the perfectly competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves shown on the following graph
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)
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
Assume that a competitive firm has the total cost function: TC=1q3−40q2+820q+1900TC=1q3-40q2+820q+1900 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Using tables (but not calculus) to find a solution, what is the total profit at the optimal output level? Please specify your answer as an integer.
Can you show how Qsc is = 2Pc? Which is the answer for this.
A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a sunk fixed cost of $108 per week. Its marginal cost is MC = 6Q². a. What is the firm's supply function when the $108 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q = (P/6) 0.5 for Pz $| b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. Q = (P/6) 0.5 for Pz $ 216 ✪ 0
Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost function is TC=579+12q+q^2 and Marginal Cost function is MC=12+2q. What quantity does each firm produce in the long-run equilibrium?
Assume that the marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $700 and its average variable costs are $5. If the price of the product is $4 per unit and the firm produces the profit-maximizing level of output, How much profit firm will earn ?
Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the Industry, every firm in the industry is Identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) PRICE (Dollars per por 100 90 80 70 60 50 40 30 20 100 10 50 0 80 70 60 50 40 30 20 10 0 The following diagram shows the market demand for copper. 0 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the Industry supply curve.) Next, use the purple points (diamond symbol) to plat the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run Industry supply curve when there are 40 firms. MC D 0 5 10 ATC H AVC D 0 15…
After serving as President of the United States for eight years, Dena has retired from politics and has decided to become a wheat farmer. The market for wheat is perfectly competitive and the current market price for wheat is $10 per bushel. Dena is currently producing 8 bushels (Dena can only produce this good in whole units). Her total cost at 8 units of output is $88 and her variable cost at 8 units of output is $64. Dena knows that if she produces a 9th unit her total cost will become $97, and if she produces a 10th unit her total cost will become $110. Dena’s goal is to maximize her profits. Based on this information, identify whether each of the following would be true or false and briefly explain your reasoning. Dena is currently losing money in the short-run and she would be better off if she shutdown and produced zero. Dena is not currently profit maximizing at 8 units of output and she could increase her profits if she expanded output by one unit. Dena would increase her…