3. Consider a market for a good with the following demand function: Q = 120-2p where is quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc).

3. Consider a market for a good with the following demand function: Q = 120-2p where is quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc).

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.2: Supply

Problem 2ST

See similar textbooks

Similar questions

Market Equilibrium A retail chain will buy 900 cordless phones if the price is $10 each and 400 if theprice is $60. A wholesaler will supply 700 phonesat $30 each and 1400 at $50 each. Assuming that thesupply and demand functions are linear, find the market equilibrium point and explain what it means.
Suppose we have identical students and each individual student's demand for Ramen bowls is given by P=165-3Q. We have 193 students on campus. What is the total quantity demanded from these 193 students when the price of a Ramen bowl is $20. Assume that the market for Ramen noodle bowls is perfectly competitive. Enter a number only. Remember, fractions of goods are possible.
Suppose she runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear.
The market for paperback detective novels is perfectly competitive. Suppose we have identical book readers, and each individual book reader's demand for paperback novels is given by P=130-7Q. We have 160 book readers in the market. What is the market quantity demanded when the price of a paperback novel is $21. Enter a number only. Remember, fractions of goods are possible.
Consider the following demand function for wheat: Qd = 120 - 5P - 3Pst.0.251 where Qd is the quantity demanded of wheat, P is the price of wheat, Ps is the price of soybeans, and I is incom Based on the function, which of the following statements is correct? %3D O Wheat is a normal good. O The demand for wheat violates the law of demand. O Wheat and soybeans are subsitute goods. O Wheat is an inferior good.
The market demand for Ramen noodle bowls is Q=196-5P. The market supply for Ramen noodle bowls is given by P=5+2Q. Assume the market for Ramen noodle bowls is perfectly competitive. If market price is $8 what is the difference between demand and supply? Enter a number only.
Consider a competitive market for red lentils with 10,000 identical farmers, a competitive market price of $5 and the following MC for each farmer: MC = $0.5+ $0.05Q Also consider the following market demand function: Q_D=1,100,000-40,000P a) Calculate the optimal level of production (in tonnes) for each farmer (show workings). b) Assuming 10,000 lentil farmers of equal size, determine the market supply function and the equilibrium market quantity (show workings). c) Consider that the government now imposes a 25% tax on producers, calculate the new market equilibrium price (two decimal places) and new market equilibrium output (two decimal places) (show workings). d) Calculate the value of the deadweight loss for the consumer and the producer following a 25% tax on red lentils, as well as, the amount of government revenue.
Which of the following graphs represents the supply for peanut butter if the cost for peanut fertilizer goes up?
Suppose that the market for dress shirts is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 40 35 30 ATC 25 20 15 AVC 10 MC 5 + 2 4 6. 8 10 12 14 16 18 20 QUANTITY (Thousands of shirts) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per shirt) (Shirts) (Dollars) (Dollars) (Dollars) (Dollars) 12.50 7,500 135,000 27.50 135,000 45.00 135,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is…
A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?
Suppose that the market for dress shirts is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 50 18, 42 45 40 35 30 ATC 25 20 15 AVC 10 MC 2 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands of shirts) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per shirt) (Shirts) (Dollars) (Dollars) (Dollars) (Dollars) 12.50 7,500 135,000 27.50 135,000 45.00 135,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is…
A flour mill buys its wheat from two different farms, then processes the wheat into flour. Wheat from Farm X costs the mill $7 per bushel, and wheat from Farm Y costs the mill $15 per bushel. The selling price (in dollars per bushel) for the mill's wheat can be modeled by p(x, y) = 500 x y where x is the demand for the flour milled from Farm X's wheat and y is the demand for flour milled from Farm Y's wheat. Assume that x and y may be zero (so the mill only buys from one of the suppliers) and that the mill can by 1/2 of a bushel. Then the maximum profit is attained when x = y = bushels bushels The amount of the flour mill's maximum profit is $