The marginal cost of a competitive firm is MC(Q)=4Q+7. The market price is 80. Suppose the current output level is Q=15. At this point, would the firm like to increase or decrease its output level? Enter 1 for increase, 2 for decrease.
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The marginal cost of a competitive firm is MC(Q)=4Q+7. The market
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- 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?Consider the following cost curve for a firm in a competitive industry where the market price equals $150. C= =q° + 6q + 1,500. What is the firm's marginal cost (MC)? MC = 150. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at 12 units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $ (Round your response to the nearest dollar.) What is the firm's profit? The firm earns a profit of $. (Round your response to the nearest penny.) In the short-run, this firm should shut down produce DEG tv 20 MacBook Air PII SO F11 F12 FS F10 F9 F6 F7 F2 F3 F4 & #3 $ 4 6 7 8 - 2 3 { E R Y P Q А F G H J K L D ? C V M command option command .. .- レ Λ.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?
- A competitive firm's total cost is TC(Q)=3Q2+7Q+35 when the output level is Q. Accordingly, its marginal cost is MC(Q)=2*3*Q+7. The market price is P=94. You are told that the firm will not shut down in the short run. Please find its optimal output level.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'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 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>13Consider the following cost curve for a firm in a competitive industry where the market price equals $150. C = + 6g + 1,500. What is the firm's marginal cost (MC)? MC =- (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $- (Round your response the nearest dollar.) What is the firm's profit? The firm earns a profit of $. (Round your response to the nearest penny.) In the short-run, this firm should shut down produce E 20 étv MacBook Air 80 DII DD F2 F3 F4 F8 ! @ # 2$ & 2 3 4 5 7 8 9 Q W E R Y P A S D F G H K C V B M ption command comman NProblem IV: A perfectly competitive firm has a total cost function given by T C(Q) = 2Q3 – 20Q2 + 100Q. a) What will be the optimal quantity produced by the firm if the market price is P = 300? What will be the profit? (Q=10, Profit=2000) b) How about if the market price is P = 45? What will be the optimal quantity and profit in this case? (Q=0, Profit=0) c) Find the break even point and the shut down point. (50) d) Assuming the initial market price of $300, what will be the optimal quantity and profit if a new fixed cost of $1000 has to be incurred by the firm? How about if this FC=$3000?
- A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long- run cost function C = 100 + q². As a result, a firm's marginal cost function is MC = 2q. In the long-run competitive equilibrium, (a) How much does the firm produce? (b) What is the equilibrium price? (c) If the market quantity demanded at the equilibrium price is Q = 2500, how many firms are in the market?A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of gizmos. The gizmo producer has a marginal cost curve equal to 0.52q, where q is the number of cans of gizmos produced. The gizmo producer currently produces 192 cans of gizmos. Should the gizmo producer produce 193 cans of gizmos instead? No, the marginal cost of the 192nd box is above marginal revenue, so production is already too high. No, while the marginal cost of the 192nd box is below marginal revenue, the marginal cost of 3rd box is above it, so profit is already maximized. None of these answers. Yes, the marginal cost of the 192nd box is below marginal revenue, so production is too low, and profits are not maximized. 20 MacBook esc 20 F3 OOD F1 F2 F4 2$ W R tab 6 5 %A4 %# 3Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)
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