The market for sugar cane is perfectly competitive. A typical supplier has a fixed cos FC = 1200, a variable cost VC(q) = 400+2q; +4q?, and a marginal cost MC; = 2+8q where qi is the quantity produced in tons by company i. The total demand for sugar cane is given by q = 10000 - 2.5p. There are currently 500 producers. In the long run, the number of producers will be closest to (1) 216. (2) 385. (3) 421. (4) 479.

The market for sugar cane is perfectly competitive. A typical supplier has a fixed cos FC = 1200, a variable cost VC(q) = 400+2q; +4q?, and a marginal cost MC; = 2+8q where qi is the quantity produced in tons by company i. The total demand for sugar cane is given by q = 10000 - 2.5p. There are currently 500 producers. In the long run, the number of producers will be closest to (1) 216. (2) 385. (3) 421. (4) 479.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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Bookmarks Profiles Tab Window Help Table 12-1 Quantity 0 100 200 300 400 500 600 # 3 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Total Cost (dollars) $1,000 E 50) Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity according to the MR= MC rule? A) 300 units B) 400 units. C) 500 units D) 600 units Dane De 101 100 ture.com/courses/2244593/files/144593507?module_item_id=37898795 D 1,360 1,560 1,960 2,760 4,000 5,800 S4 R F Variable Cost (dollars) $0 360 560 960 1,760 3,000 4,800 % 5 T G MacBook Pro A 6 Y & 7 H U : * 8 J - ۔ 9 K ¹e 0 49)
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