Suppose a competitive firm (firm operating in purely competitive market) has total cost TC = 150 + 25Q + 3Q². Assume that the market price is equal to $100 per unit. Calculate profit maximizing level of output produced, profit received, and producer surplus for this firm.
Q: A19 Subject - economics Consider a constant returns-to-scale production function f(k, l). Show…
A: A return-to-scale production function is a mathematical representation of how the output of a…
Q: If the profit function for selling smart phone screen magnifier is -4500p2 + 561500p – 11898000,…
A: Given Profit function: π=-4500p2+561,500p-11,898,000 To find the maximum profit, find the value of…
Q: 8. The table shows the marginal private benefit schedule from a college education. The marginal cost…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral…
A: Given: Anita : 30 minutes to finish one floral arrangement and 40 minutes to make a delivery Jerome…
Q: Announcing in his Budget 2023 speech on Tuesday, Deputy Prime Minister and Finance Minister Lawrence…
A: In this question, we are presented with a news article regarding the announcement of an additional…
Q: Which of the following is not true according to Figure 1?
A: A perfectly competitive firm is a price taker, which means the price is determined by the market and…
Q: Use the unchanged price level PO to find the disequilibrium expenditure. Which of the graphs…
A: In an economy, equilibrium is the situation where various variables in the economy such as price and…
Q: Given a demand function Q=f(P), the own price elasticity of demand is defined as e= (dº) · (²). WL
A: Price elasticity of demand measures the percentage change in quantity demand due to a change in…
Q: Suppose that every driver faces a 5% probability of an automobile accident every year. An accident…
A: Actuarially fair premium is a premium or price that is calculated based on the expected value of the…
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: Utility function, u(x) = x^n/n Initial wealth = w There is a safe asset (such as a US government…
Q: A rotational molding operation has fixed costs of $9,000 per year and variable costs of $54 per…
A: ***Since the calculation of the break-even output would require both cost and revenue functions,…
Q: You obtained the above coefficients in your regression on Soap Detergent. Variables 1-4 are as…
A: Intercept value=825.323 Coefficient of X1=-5.03159 Coefficient of X2=4.772655 Coefficient of…
Q: A country's central bank is engaging in monetary contraction, with M going from M0=40 to M1=20. Its…
A: C=3+0.7(Y-T) I=18-200r G=10 T=9 M0=40 P0=2 M/P = 0.02 / (r - Y/5000)^2 Initial equilibrium income=54…
Q: 1. In the signalling model of education, separating equilibria in which education acts as a signal…
A: Michael Spence's influential 1973 paper "Job Market Signalling" made popular the economic signaling…
Q: The market for a good is supplied by two companies whose total cost functions are given by C₁ (9₁) =…
A: Demand function : P(Q)= 120 -Q where , Q = Q1 + Q2 Cost function of firm 1 = 30q1 Cost function of…
Q: butput. What is the smallest integer price that would make a firm willing to produce a positive…
A: The link between the inputs and outputs is shown by the production function. In order to produce the…
Q: 6. Consider the entry-deterrence game below. The potential entrant moves first and would have to…
A: The decisions and actions that the two parties take in response to one other's actions and potential…
Q: The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: draw a graph explain why, in the light of slow growth in South Africa, cement producers were forced…
A: In economics any economy is said to go through a slow growth period if and when the growth is…
Q: An investment End of Year has the following cash flow series where interest is 5%: 0 1 2 3 4 5 6 7 8…
A: A uniform cash flows series is an annuity when there are regular payments will be performed at the…
Q: Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but…
A: The initial supply curve is S0. Hence, the equilibrium before the imposition of tax takes place at…
Q: Calculate the total effect on welfare of a tariff of 15 per unit levied on imports.
A: The welfare effect of an import tariff is calculated by adding the producer surplus and consumer…
Q: rature review of Phillip curve theory between Keynesian and monetarist
A: The Phillips Curve theory, named after economist A.W. Phillips, posits an inverse relationship…
Q: Exercise 6.1Suppose that two airlines decide to collude. Analyse the game between these two…
A: Answer-1. a) Airline B: 100 € Airline B: 200 € Airline A: 100 € A: 50, B: 50 A:…
Q: The price elasticity of demand along a linear is equal to the rate of change of the slope. O is…
A: Price elasticity of demand measures the responsivness of change in quantity demanded to change in…
Q: Now consider the long run, in which bike manufacturers are free to enter and exit the market. Show…
A: A monopolistically competitive firm is a type of market structure where there are many firms…
Q: Describe what it means for the distribution of earnings to have a "long right tail". Then, list…
A: When the earnings distribution has a "long right tail," a relatively small number of people or…
Q: Determine the equilibrium output levels, market price, and profits for both firms, assuming Firm A…
A:
Q: In short, how is it possible for countries with high and increasing per capita capital stocks to…
A: Production Function: Production function represents a relationship between the input and output. It…
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: In economics, a portfolio problem is a problem in time finance, where an investor has to choose the…
Q: A monopolistically competitive industry exists in both Pugelovia and the rest of the world, but…
A: When trade is opened for a monopolistically competitive industry in Pugelovia, home consumers in…
Q: Define, compare and contrast: (i) A relative poverty line, (ii) an absolute poverty line, (iii)…
A: The minimal amount of money or resources needed to meet basic requirements and preserve a…
Q: Lesson 1 - Integration Activity W5L1 - A (a) A firm's marginal cost function is MC = Q² + 2Q +4 Find…
A: Marginal cost is the additional cost incurred by a firm to produce one more unit of a product or…
Q: Please no written by hand solution Which of the following statements is TRUE? Worldwide markets…
A: Worldwide markets allude to the global exchange of goods, services, and capital among individuals,…
Q: The initial budget constraint (BC₁) shows the Steins' budget constraint when the price of a fancy…
A: The indifference curve depicts the combination of two goods that generate the same level of utility…
Q: QUESTION 19 According to liquidity-preference theory, in which circumstance would the money-supply…
A: In the liquidity-preference theory, the money supply is a vertical line representing the constant…
Q: 8. Short-run and long-run effects of a shift in demand Suppose that the tofu industry is initially…
A: Suppose that the tofu industry is initially operating in long-run equilibrium at a price level of $5…
Q: Calculate the real dollar rate of return on a 10,000 pound sterling deposit in a London bank in a…
A: The rate of return is the percentage gain or loss on an investment over a certain period of time,…
Q: 20 10 260 300 demand increased by 100 units at each price level, and the government set a price…
A: A demand schedule is a table that lists various prices for a good together with the quantity that is…
Q: As a result of the decrease in donut prices at Yum Yum Donuts, Krispy Kreme discovers that A. Demand…
A: Substitutes are goods which are not consumed together. Only one of them is consumed at a time.
Q: B) A monopoly has two production plants with cost functions C1 = 50 + 0.1Q12 and C2 = 30 + 0.05Q22.…
A: A monopoly is a market structure characterized by a single seller who controls the entire supply of…
Q: 50. Add a curve to the graph below that shows how an Exclusive Union will impact a Perfectly…
A: Since you have posted multiple questions, we will be solving only the first one. If you want…
Q: Ball 7,5 Meal Meal 4,3 Alice and Xitong are deciding whether to attend a ball or go out for a meal.…
A: Since you have posted multiple MCQs of different topics, we will be solving only the first one. if…
Q: If the companies that make up a duopoly agreed on the amount they are most interested in offering to…
A: A duopoly market is a kind of market with oligopoly in which two companies dominate the sector and…
Q: draw the demand for capital for the firm in the RBC model
A: RBC model is the new classical macroeconomic model that highlights the fluctuations of growth in the…
Q: Use the graph below and the following information to answer the next question(s). The world price of…
A: A tariff refers to a tax on imported products. The trade policy is usually motivated with the…
Q: Suppose that Ireland and Norway both produce boots and shoes. Ireland's opportunity cost of…
A: Comparative advantage refers to the ability of the country to produce the goods at an opportunity…
Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…
A: Formula for the present value is given as: P = F(1+R)tP : present value F : Future value t : total…
Q: Railroad construction lagged due to sparseness of population in which of the following regions of…
A: The making of infrastructure and buildings is construction. It is regarded as one of the most…
Q: a. If you decide to offer the product for sale to all buyers at a single price, what price will you…
A: Individual demand is when a buyer has both the desire and the means to purchase a good at a specific…
pls send me answer of this question immidiately and i will rate you sure sir.
Step by step
Solved in 3 steps with 1 images
- 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.A firm operating in a perfectly competitive market has a total cost function: CT = Q3 - 24Q2 + 260Q + 350Supply and demand functions in this market are Qo = 10 P - 750 and Qd = 6,000 - 15 Pa. Calculate what quantity you will produce to maximize profits and find profit you will make.b. Graph tmarket equilibrium and firm's equilibrium and calculate minimum operating profit.You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC $8 Market price = $9 Quantity 1 2 3 4 5 6 MC ($) 8 7 6 8 10 13 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much? Output: (Click to select) $
- 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…A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What is the average revenue, and how many units were sold? Microeconomics - MankiwAssume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?
- You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $7 Market price = $16 Quantity MC ($) 11 9 10 4 12 15 6 19 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much? Output: |(Click to select) v$The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 10 3.5 15 3 20 2.44 2.86 25 3.56 3 30 4.02 3.17 35 5.48 3.5 40 5.98 3.81 45 8.49 4.33 Instructions: In part a, enter your answer as the closest given whole imber. a. If Buddies wants to maximize its profits, how many pairs of ear buds should it produce? pairs Instructions: In parts b-d, round your answers to 2 decimal places. b. At the profit-maximizing quantity, what is the total cost of producing ear buds? $ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit? 2$The graph shows the demand curve (D), average total cost curve (ATC), average variable cost curve (AVC), and the 90 - marginal cost curve (MC) for a perfectly (or purely) 80 - competitive firm. D= MR 70- Assuming that this firm maximizes profit, what is this firm's profit? 60 - ATC 50 AVC profit: $ 40 40- 30- MC 20 - 10- 40 10 20 30 50 60 70 80 90 Quantity Price and cost ($)
- Figure 4.2 shows the cost curves for a typical firm in a competitive market. From the graph, estimate the firm's profits when price equals $10 per unit.2. A competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC= 5 + 0.5Q where Q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a vertical distance of 10 above the horizontal axis. a. Determine the market short-run supply curve. b. Calculate the price that would make 2,000 units forthcoming per time period.The graph below shows cost curves for a firm operating in a perfectly competitive market. Note: 20 Blue curve = AVC Green curve = ATC Red curve = MC Black line is demand Quantity of Apples Suppose that the equilibrium price is $17.66 (black line). This firm is earning OLosses O Profits OZero Economic Profits (Break-even point) Price of Apples