Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+/q² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand QD 160-4P where P is the price and is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? O 50+ //q O q
Q: 6 adults and 4 senior citizens have to pay $228 while 13 adults and 7 senior citizens have to pay…
A: Given that:Cost of 6 adults and 4 senior citizens to visit exhibition = $228Cost of 13 adults and 7…
Q: The table below shows hypothectical figures of revenue and spending for the Canadian government. For…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Economists use the term supply to refer to A B C D the total quantity of a good or service that is…
A: The relationship between the price of a good or service and the quantity that producers are willing…
Q: If there is a $3 tax, what is the CS, PS, tax revenue, TS, and deadweight loss?
A: The concept of government involvement is any regulating action taken by any state that directly…
Q: 1. Consider the following figure to answer the following four questions. (Please note that the…
A: At equilibrium price, quantity demanded equals quantity supplied for a commodity. When the price…
Q: Considering the following data (expressed in billions of U.S. dollars), calculate Ml and M2.…
A: The following are the different measures of money supply: M1 money supply. M2 money supply M3 money…
Q: Consider the online learning problem with demand learning. The firm sells a product without any…
A: Demand function D=9-3P+ε ε-- error term with zero mean Marginal cost is negligible When marginal…
Q: Which of the following is a significant change in public policy in the U.S. since the 1980s?…
A: Public policy change refers to a shift or modification in the laws, regulations, and actions taken…
Q: If an interval estimate is said to be constructed at the 90% confidence level, the confidence…
A: Confidence coefficient is the confidence level in proportion rather than percentage. A confidence…
Q: Give typing answer with explanation and conclusion Suppose that a consumer's utility function is…
A: Given Consumer utility function: U=x5y3z3 Here x is the consumption of mineral water, y is the…
Q: Q-1. The price of the plane ticket was increased by 171, while before the increase its price was…
A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…
Q: A. If the Demand for a monopolist's good shifts out, what happens to the equilibrium price and…
A: According to guidelines, only first question is to be attempted. The question pertains to the…
Q: Trade distortion effects increases estimates of the United States' trade deficit with China. To what…
A: Trade distortion refers to numerous regulations or factors which can alter or disrupt the natural…
Q: T/F There is a absence of selling cost in a perfectly competitive market.
A: A market structure where there are many small businesses selling the same, homogenous product and no…
Q: Suppose you earn an income of $50000 a year. You purchase the bundle of goods and services on your…
A: A budget constraint is a concept used in economics to describe the total number of products you can…
Q: (d) The producer surplus is $_ 1600 million. Now, suppose the government imposes a quota of 60…
A: The equilibrium is where the demand curve intersects the supply curve. Producer surplus is the area…
Q: Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility…
A: Total Cost: The term total cost refers to the cost that includes the total variable cost and the…
Q: If there is a $3 tax, what is the equilibrium price buyers pay, the price sellers receive, and the…
A: Any regulating action performed by any state that directly affects a free market in a way that…
Q: A proposal that is attracting increasing attention is a requirement that employers provide their…
A: Labor demand refers to the amount of labor that employers are willing to hire at a given wage rate…
Q: Show how each of the following would affect the U.S. balance of payments. Include a description of…
A: The balance of payments (BOP) is a record of all transactions between a country's residents and the…
Q: 1. Good A and Good B are perfect complements. Suppose the cost to produce good B rises. The price of…
A: If two goods can be used on place of each other, then this means that they are substitute of each…
Q: Gasoline prices have been and will continue to be a major issue for the economy. From the start of…
A: Demand refers to the amount of a good or service that consumers are willing and able to purchase at…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: When the gap between total revenue and total costs is as large as possible, profit is maximised.…
Q: Suppose a monopolist faces consumer demand given by P=300-5Q with a constant marginal cost of $100…
A: The profit is maximized where the MR = MC. The monopoly firm is price maker in the market. The…
Q: Consider the following cash flows for a project. Year CF 0 -100 1 -500 2 400 3 -100 4 400 5 500…
A: Given Cash flow Financing rate=6% Investing rate= 12%
Q: A U.S. synthetic rubber manufacturer is considering moving its production to a Japanese plant. Its…
A: Given Production function q=L0.5K0.5 ...... (1) Here L denotes the quantity of labor, K…
Q: Consider the following analysis of two alternatives, X & Y: YR X Y…
A: Incremental IRR refers to an approach that is applied to measure if an incremental expenditure…
Q: Jackie moved to Spain to work for a public relations firm. She had health insurance from her…
A: Public healthcare is a healthcare system that is funded and managed by the government to provide…
Q: The total money supply M has two components: bank deposits D and cash holdings C, which we assume to…
A: The entire quantity of money that is readily available in an economy at any particular moment is…
Q: Given the following scenario, decide if Aggregate Demand (AD) or Short Run Aggregate Supply (AS)…
A: The aggregate demand is the sum of consumption , Investment , government spending and net export.…
Q: $200 today and a call option on that stock that gives you the right but not the obligation to buy…
A: Calculating the expected payout of the call option in each of the two scenarios is necessary to…
Q: Choose a global event from the past 100 years, such as a pandemic, recession, or technological boom.…
A: With the increasing globalization of economic and trade activities, it's more important now than…
Q: Internal rates of return for three alternative investment projects follow. Each project has a…
A: IRR: IRR or the internal rate of return is the rate of return created by a project where the cash…
Q: d) Calculate the real GDP using 2005 prices for each of the three years. W
A: GDP is the gross domestic product. GDP is the market value of all the goods and services produced…
Q: The following graph shows the labor market in the fast-food industry in the fictional town of…
A: Price floor means a minimum wage is set above equilibrium wage rate such that the quantity supplied…
Q: The following graph shows the labor market in the fast-food industry in the fictional town of…
A: The labour market is a high priority in both micro and macroeconomics because it has the possibility…
Q: (a) Compute and draw in the same graph marginal cost, average cost, average fixed cost and average…
A: AC stands for average cost, which is the total cost of production divided by the quantity produced.…
Q: Imagine that there are only two apple producers in Australia, Crispy and Crunchy. Crispy's supply…
A: Crispy's supply curve: p=2q Crunchy's supply curve :p=10+2q The aggregate supply is the horizontal…
Q: You purchased five video games at $20.00 each and eight apps from iTunes for $2.99 each. The fifth…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Name two factors that contributed to inflation in 2022 and 2023.
A: Inflation has far-reaching effects throughout an economy. When prices rise significantly over a…
Q: Suppose that the consumer’s consumption demand function is given by Cd(r) = 0.8(Y−T)+10−10r.…
A: Output demand is a sum of spending by consumers, businesses and government
Q: 1. What does gross domestic product (GDP) measure? 2. What is the difference between real vs.nominal…
A: GDP, also known as gross domestic product is one of the most important economic indicator in modern…
Q: In the long run, should we perfectly competitive firms a positive accounting profit? Explain your…
A: Perfectly competitive firms are firms operating in a market structure where there are many small…
Q: A consumer has income of $15,000. Pillows costs $35 per pillow, and soda costs $70 per bottle. a.…
A: Given, Consumer income= 15000 dollars Price per pillow = 35 dollars Price per soda bottle = 70…
Q: (Figure: Determining Monopolist Profit) Based on the graph, the profit-maximizing firm's total cost…
A: The monopolist produces where the MR=MC. The monopoly firm is price maker in the market.
Q: Using the model of Aggregate Demand and Supply, explain the impact of Brexit on the Irish Economy,…
A: With increased global integration of trade and economic activities, it is more important than ever…
Q: If the market for Product X is a monopoly, how might the business that produces Product X raise the…
A: A monopoly refers to a market structure where a single producer or seller controls the supply of a…
Q: What is Inter-industry and Intra-industry trade? How do economies of scale and product variety…
A: Trade refers to the exchange of goods and services between two or more parties, often involving the…
Q: Consider the following two-player game: H L T D 2,3 0,2 4,0 4,0 1,1 (a) What are (pure- and…
A: Given pay-off Player 2 T D Player 1 H 2,3 0,2 L 4,0 1,1
Q: The graph below depicts a government intervention setting a price ceiling of $900 per month for a…
A: Price ceiling is the maximum legal price that can be charged for a good. Binding price ceiling is…
Pls help solve fast
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2 Marginalcost:MC=q where q is an individual firm's quantity produced. The market demand curve for this product is Demand:QD=120−P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market.a. What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost.b. Graph average-total-cost curve and the marginal-cost curve for qfrom 5 to 15. Atwhat quantity is average-total-cost curve at its minimum? What is marginal cost and averagetotal cost at that quantity?c. Give the equation for each firm's supply curve.d. Give the equation for the market supply curve for the short run in which the number of firms is fixed.e. What is the equilibrium price and quantity for this market in the short run?f. In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Is there incentive for firms to…Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2 Where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Q = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost? At what quantity efficiency of scale would be achieved? Give the equation for each firm’s supply curve Give the equation for the market supply curve for the short run What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit? In the long run with free entry and exit, what is the equilibrium price and quantity in this market? In the long-run equilibrium, how many firms are in the market?
- Assume 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?Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2 Where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Q = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost? At what quantity efficiency of scale would be achieved? Give the equation for each firm’s supply curve Give the equation for the market supply curve for the short run What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit? In the long run with free entry and exit, what is the equilibrium price and quantity in this market? In the long-run equilibrium, how many firms are in the market? I want the subparts 4,5,6 to be solved. Thank youSuppose that each firm in a competitive industry has the following costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120 - P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost.
- Sarge's Lawn Mowing Service is a small business a perfectly competitive market. The prevailing market price of lawn mowing is $20 per acre. Sarge's costs are given by total cost = 0.1q² + 10q + 50, where q = the number of acres Sarge chooses to cut a day. How many acres should Sarge choose to cut to maximize profit? values without any comma, or decimal places.) How much is Sarge's maximum daily profit? your answer in numerical values without any dollar sign, comma or decimal place (please put your answer in numerical (please putSuppose that each firm in a competitive industry has the following costs: Total cost: TC= 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 − PThere are 9 firms in the market.e) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm’s profit.f) In the long run with free entry and exit, what is the equilibrium price and quantity in thid market. Is there incentive for firms to enter or exit? h) In this long-run equilibrium, how much does each firm produce? How many firms are in the market?Farmer Jones grows apples. The average total cost and marginal cost of growing apples for an individual farmer are illustrated in the graph to the right Assume the market for apples is perfectly competitive 40- According to the graph, farmer Jones will eam profit (positive economic profit as opposed to losses) at any market price above $ 10 per box. (Enter a numeric response using an integer) Assume that the market price specifically is $24 per box Iffarmer Jones produces the profit maximizing quantity, what will be her profit? S 36- To more easily identify the price and quantity, click on the graph to the nght, and then adjust the slider to change the price and quantity Each increment will increase the prce by $2. 32- MC 28- 24- 20- 16- ATC 12- 8- 4- :46 10 20 30 40 50 60 70 80 90 100 Quantity of Apples (boxes per month) Price and cost (dollars per box)
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2The market demand curve for this product is: Qd= 120 −PThere are 9 firms in the market.a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve.b) Give the equation for each firm’s supply curve.the average-total-cost curve at its minimum? What is marginal cost and average totalc) Give the equation for the market supply curve for the short run in which the numbercost at that quantity?The demand curve and supply curve for carpet cleaning in the local market are currently as follows: Demand: Q = 1,000 - 1OP Supply: Q = 640 + 2P The total cost function for the typical carpet cleaning company is: TC= 75 + 3q2 (so that FC=75, VC=3q2 and MC= 6q), where costs are measured in dollars and q is output per year. The market is perfectly competitive. First question how do I calculate the optimal output for the typical carpet cleaning firm in the short run and how many firms would operate in the market in the short run? Second, how would I compute operating profits and total profits for the typical firm in the short run. Based on the results so far, would you say that this market is at the long-run equilibrium?Suppose the quantity of apples supplied in yourmarket is 2,400. If there are 60 apple producers,each with identical cost structures, how manyapples does each producer supply to the market?