There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $100 and the variable cost is 3q. Market demand function is given by Q=1200-70P. Find the equilibrium quantity of a type A firm and its profit, respectively. q=4, profit-$4 q-2, profit=$4 Oq-3, profit=$6 q=5, profit-$23

There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $100 and the variable cost is 3q. Market demand function is given by Q=1200-70P. Find the equilibrium quantity of a type A firm and its profit, respectively. q=4, profit-$4 q-2, profit=$4 Oq-3, profit=$6 q=5, profit-$23

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

There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $10 and the variable cost is 3q. Market demand function is given by Q=1200-70 P. Find the equilibrium price in the market. $7 $8 $12 $10
What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms operate?
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.
In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm’s demand curve? Show it on a graph and label the axes showing P and Q
Glowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in the market. Each firm's Total Cost function is TC=396+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=484-P. What is the profit earned by each firm in the short-run?
Consider a competitive industry with a market demand curve of P = 121 – Q, where P is market price and Q is the quantity demanded in the market. In the short run there are 4 firms in the industry, and each firm has a total cost function of TC = 25 + 6q + q2, where q is output of the individual firm. In the long-run market equilibrium what is the number of firms in the industry? Group of answer choices 26 15 5 110 21
Suppose that the perfectly competitive for market for milk is made up of identical firms with long-run total cost functions given by: TC = 4q³-24 q² + 40 q Where, q = litres of milk. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exist the market freely. If the market demand is : 1. What is the long-run equilibrium price? Number Qd = 6,000 - 120 P 2. What is the quantity produced by each firm? Number 3. What is the number of firms in the industry? Number 4. Suppose that market demand increases to Qd = 11,000 - 157.14 P. What is the new long-run equilibrium number of firms? Number
In the US cotton market, each farm having the cost function c(q)=0.5q^(2)+ 10 q+162 where q is the quantity of cotton in tons produced by each farm. The market demand curve is given by Q^(d)=10,400-50 p. Suppose the government gives each farm a subsidy of $8 per ton. Calculate the long-run market price assume the market is perfect competition. $20 $25 $30 $35 With all steps clearly
Suppose that there are 90 firms in a market, each with the following cost function: C(q) = 65+4q2. Suppose the market demand is D(p) = 1,260 - 39p How much profit does each firm make in the short-run equilibrium? Your Answer:
A competitive industry consists of 100 identical firms. The short run cost function of each firm is given by C(q)=200q+15q^2 Suppose that the market demand function is P=400-0.1q Calculate the market equilibrium price and quantity
Answer options: 0, 5, 7, 10, 15, 20, 25, Other
choose the right answer: a) q=4, profit=4 b) q=6, profit=2 c) q=3, profit=6 d) q=2,profit=4.