TR=90Q - Q2 TC=2Q2 + 30Q Determine the quantity level at which the firm maximizes its total profit.(hint:use marginal revenue=marginal cost rule)
Q: A profit - maximizing firm in a competitive market is currently producing 100 units of output. It…
A: In case of perfect competition there are large number of buyers and sellers. The firms sell…
Q: Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for…
A: The marginal cost is the change in the total cost that arises when the quantity produced is…
Q: Suppose that the firm with the costs and revenues shown in the graph below is contemplating whether…
A: A perfectly competitive firm is known as a price taker because the strain of competing firms forces…
Q: A firm currently produces 500 units at a price of $40. If it earns $1,500 profit, what must the…
A: Profit is the difference between the total revenue and total cost. Profit is given as :- Profit =…
Q: 1. Suppose the total cost to a firm of producing a quantity q of some commodity is C(q) = 490 + 20q…
A: Given: C(q) = 490 + 20q + 0.1q2 To find out marginal cost i.e. MC(q), take the first order…
Q: You are given the following information for a producer of organic grommets in a perfectly…
A: Perfect competition is a type of market where there are very large number of firms,which have no…
Q: You're running a small firm, and you have an estimate of both your cost function and your demand…
A: Total revenue is the product of price and quantity. Profit is the difference between the total…
Q: e shapes of firms' cost curves are important because they help us determine how the firm will…
A: The cost curve is the curve that is a graphical representation of the firm's cost at different…
Q: A boutique fruit juice manufacturer produces 2 types of juices, Apple and Fig daily with a total…
A: Lagrangian optimization problem has a following setup : Objective function & Constraint…
Q: Mango Systems believes that demand for its pet e-mouse follows a linear demand equation: Quantity =…
A: A connection between cost, sales, and profit is established via the contribution margin idea. The…
Q: Suppose that the market for microwave ovens is a competitive market. The following graph shows the…
A: Industrial economics is the study and appraisal of business financial issues utilizing abstract…
Q: Suppose a perfectly competitive firm is able to sell its product for $8. At its current level of…
A: The profit of a firm can be measured by subtracting total cost from total revenue. Profit = Total…
Q: You sell items. Your marginal revenue and marginal cost are given by the formulas: MR (q)=…
A: The firm would involve the cost of the production of the goods and services to produce goods and…
Q: QUESTION 2 The long-run total cost function for producers of mineral water is LRTC (Q) = rQ, where Q…
A: Answer - Part a Answer - Need to find- Long run equilibrium price and quantity Given in the…
Q: Given the information in the table at right, calculate the dry cleaner's marginal revenue (MR) and…
A: Revenue is amount receive by seller when they sell their commodities in the market and the marginal…
Q: Sketch a diagram showing the marginal cost curve, the average variable cost curve, and the firm’s…
A: Marginal cost is the change in the total cost when an additional unit of output is produced. Average…
Q: (Enter your At a price of $18 per CD, a firm sells 40 CDs. If the slope of the demand curve is -…
A: Marginal revenue is the revenue generated from the sale of an additional unit of output. Total…
Q: Fill in the table What are the profit-maximizing price and quantity, and what profit will be…
A: We use the following formulas to solve the missing values in the table: 1) Total Revenue = Price…
Q: Table 12-1 Quantity 0 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760…
A: Total cost is the cost of producing all the units of good. Total cost is the sum of fixed cost and…
Q: Now compute the missing marginal revenue from the table. The table is reproduced here for…
A: Marginal Cost (MC):Marginal cost is the additional cost incurred by producing one more unit of a…
Q: The blue curve on the fallowing graph represerts the demand curve facing a firm that can set its own…
A: * ANSWER :-
Q: The intersection of a firm's marginal revenue and marginal cost curve determines the level of output…
A: A firm maximises its profit when the marginal revenue is equal to the marginal cost (MR=MC).
Q: Define Q to be the level of output produced and sold, and assume that the firm’s cost function is…
A: The total cost for the firm is given as The demand function is written as
Q: A firm has fixed costs of $80,000 associated with the manufacture of lawn mowers that cost $200 per…
A: Total cost is the sum of Fixed and variable cost. Total revenue is price multiplied by quantity.…
Q: Using the above graph, The minimum level of output this firm would produce is 12 units. The…
A: "Since you have posted a question with multiple subparts.We will solve first three subparts for…
Q: Monopolistic Competition -- Questions 16-20 refer to Figure 6-2 below. This figure depicts a…
A: Below is the edited graph that shows various marked points:
Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…
A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…
Q: calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal…
A: Total Revenue is the value of earnings of the firm on question. It is the product of price charged…
Q: Refer to the table below. Quantity Cost (in dollars) Fixed Costs (in dollars) Total…
A: The objective of the question is to understand the characteristics of a total cost curve based on…
Q: Your firm “We Work Eot U" rents access to shared open office spaces for a price of $540 per year.…
A: TR= 540Q TC= 80000+40Q+0.5Q2 Price= $540 per year In perfectly competitive market, for profit…
Q: Answer the question on the basis of the following demand and cost data for a specific firm. Demand…
A: When all expenditures are covered and paid from total revenue, total profit is calculated.
Q: Suppose a competitive firm has the following cost: output(units): 10 11 12 13 14 15…
A: The table showing output and cost is as follows:
Q: A competitive firm faces the following market price: P=200. Variable costs are C(Q)=Q^2. The firm…
A: Total cost is the sum of fixed cost and variable cost. Sunk costs are fixed costs which cannot be…
Q: The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the…
A: Answer to the question is as follows :
Q: Assume that a firm in a competitive market faces the following cost information. If the market price…
A: Firms in perfect competition are price takers as there are a large number of firms selling identical…
Q: On the graph input tool, change the number found in the Quantity Demanded field to determine the…
A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…
Q: The graph below shows a particular firms marginal revenue (mr) marginal cost (mc) and average total…
A: A competitive market is an expression in economics that implies a marketplace where there are a…
Q: marginal cost (MC) and average total cost (ATC) f
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The next 6 questions relate to the following table. Calculate total revenue at a quantity of 5…
A: quantitypricetotal revenuetotal…
Q: the previous graph, use the blue rectangle (circle symbols) to shade the area representing the…
A:
Q: Farmer Brown grows blueberries. The average total cost, average variable cost, and marginal cost of…
A: Marginal cost curve is U shaped, it intersects average total cost and average variable cost at their…
Q: A firm has the following revenue and cost functions. TR = 90 Q – Q2 TC…
A: A adheres to the following two guidelines for profit maximisation: 1. The first prerequisite is that…
Q: The Invisible Hand Principle states that individuals' independent efforts to maximize their gains…
A: Since you have posted multiple question, so as per answering guideline, First question will be…
Question 2
TR=90Q - Q2
TC=2Q2 + 30Q
Determine the quantity level at which the firm maximizes its total profit.(hint:use marginal revenue=marginal cost rule)
Step by step
Solved in 2 steps
- Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…A competitive firm faces the following market price: P=200. Variable costs are CQ)=Q^2. The firm also pays $17000 in costs that do not depend on production (even if q=0). Hint - marginal cost is MC(Q)=2*Q NOTE - KEEP YOUR CALCULATIONS. THIS INFORMATION WILL BE USED IN MULTIPLE QUESTIONS What is the optimal quantity this firm should produce? 200 100 50Suppose you own a firm that manufacturers T-shirt in a competitive market. Your short-run cost of producing T-shirts is given by C(q) = 50 + 3q2 where C is the total cost of production and q is the level of output. What is the shutdown price? Only typed answer please
- BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 3.50 Monopoly Outcome 3.00 2.50 Profit ATC 2.00 Loss 1.50 1.00 MC 0.50 MR 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of cans of beer) Suppose that BYOB charges $2.50 per can. Your friend Dmitri says that since BYOB is a monopoly with market power, it should charge a…Problem Set #2 (Note: On this problem, use EXCEL to generate numbers. Please replace the below table with your answers ON THIS SHEET. Similarly, in the rest of the assignment use EXCEL and insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function π = TR (31-Q)Q = TC (20+Q+2Q²) Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 10 in increments of 1.) Indicate in where total profits are maximized your tabledemand curve, marginal revenue curve and total cost curve for a product are as shown respectively Qd = 400 -2P MR = 200 -Q TC = 10Q . What is the profit-maximising level of output? [1] 0 [2] 10 [3] 190 [4] 200 [5] 400
- Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.The profit function for a firm is given by n(q) = -q³ + 300q² – 10,800q – 4,000. a. Is the firm operating in the short-run or the long-run? How do you know? b. What is the output that maximizes profit for the firm? c. What is the maximized level of profit? d. In Excel or other software, provide a graph of the above profit function to confirm your mathematical results found above. Use output amounts ranging from 1 to 200. Put profit on the vertical axis and output on the horizontal axis.Marginal cost= 2x+3 Average variable cost= x+3 Variable cost=x^2 + 3x x is the daily output. Product's price is 13 dollars. Part a) Calculate the level of output that will be produced. Part b) Calculate the producer surplus of the firm. Part c) The fixed costs are 5 dollars. In the short run, is the firm making a 0 economic profit, a positive profit, or a negative profit? Explain why.
- 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 $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work 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? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 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? d. Now assume the market price is $5.50 per pair, and Buddies produces the…QUES if you have the following graph MC MR $30 ATC AVC 20 15 75 80 100 OutputSuppose that over the short run (say the next 5 years), demand for OPEC oil is given by P = 165 – 2.5q. Here q is measured in millions of barrels a day. OPEC marginal cost per barrel is $15. What is OPEC’s optimal level of production? What is the prevailing price of oil at that level? Many experts contend that maximizing short-run profit is counterproductive for OPEC in the long run because high price reduces buyers to conserve energy and spur competition and new exploration that increases the overall supply of oil. Suppose that the demand curve just described will remain unchanged only if oil prices stabilize at $65 per barrel or below. If oil price exceeds this threshold, long run demand (over a second five year-period) will be curtailed to P = 135 – 2.5q. OPEC seeks to maximize its total profit over the next decade. What is the optimum output and price policy? (assume all values are present values)