The cost function faced by a firm in a perfectly competitive market is the following ctyl-dy+10y+25, where y denotes the output level. a. Find the price at which the firm will earn zero profits. b Also write down the equation of the supply curve of the firm, c Using your answer in part a), comment on the following statement: "At a price of p-20, the firm will make positive profit, is the statement True or False? Explain For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

The cost function faced by a firm in a perfectly competitive market is the following ctyl-dy+10y+25, where y denotes the output level. a. Find the price at which the firm will earn zero profits. b Also write down the equation of the supply curve of the firm, c Using your answer in part a), comment on the following statement: "At a price of p-20, the firm will make positive profit, is the statement True or False? Explain For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

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

Please write to text formet answer but don't copy paste the answer
If the price was given what is the formula equation to figure the "profit-maximizing quantity of output" for a perfectly competitive firm?
Sarge's Lawn Mowing Service is a small business a perfectly competitive market. The prevailing market price of lawn mowing is $20 per acre. Sarge's costs are given by total cost = 0.1q² + 10q + 50, where q = the number of acres Sarge chooses to cut a day. How many acres should Sarge choose to cut to maximize profit? values without any comma, or decimal places.) How much is Sarge's maximum daily profit? your answer in numerical values without any dollar sign, comma or decimal place (please put your answer in numerical (please put
The supply curve of a competitive firm is the postion of marginal cost that is
“That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the shortrun supply curve for the firm.” Explain using a graph and words.
The figure below depicts the market supply and demand for the perfectly competitive rollerblade industry. S Price per pair of Rollerblades 1,140 070 50 150 Number of pairs of Rollerblades per week Based on the figure above, if the current quantity demanded of rollerblades is 150 per week, you accurately predict that in the short run, Q Select one: a. price and quantity supplied will increase and quantity demanded will decrease. b. price and quantity supplied will decrease and quantity demanded will increase. c. price, quantity supplied and quantity demanded will increase. d. price, quantity supplied and quantity demanded will decrease.
A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 - 20Q + Q2where TC is total cost and Q is output level.a. Find the firm’s average total cost function. b. Find the firm’s average variable cost function. c. Find the firm’s marginal cost function. d. Given the price is $100, what is the profit-maximizing output level? e. Given the price is $100, what is the profit level? f. Over time, is there going to be entry or exit in this competitive market? Why?
PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q Price (P) = $9 MC → Marginal Cost q→ Quantity (b) What is a Firm's Producer Surplus assuming the following? Area of Triangle = 1/2* Base * Height (c) Will a Firm be Earning a Positive, Negative, or Zero Profit in the Short-Run given the following? AVC (q) =3+q FC = $3 AVC → Average Variable Cost FC Fixed Cost
2
Suppose the market price of oranges is $30.00 per crate. Characterize the farmers profit. at $30.00, the farmer will The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange farmer in California. Assume the market for oranges is perfectly competitive. Suppose the market price of oranges is $30.00 per crate. Characterize the farmer's profit. At a $30.00 price, the farmer will make a profit Oranges (crates in 100s) 0.00+ 4.00 8.00- 12.00- N Price and cost (dollars per crate) 10 11 52.00 60.00 56.00- M AT