4. The market for sugar consists of 3,500 identical, perfectly competitive firms, each with the following short-run total cost function: SRTC =1,500 + 35q². The market demand curve for sugar is Q= 11,200 -30P. What is each firm's maximum short-run profit? a. $0 b. $280 c. -$1,080 d. -$1,360 e. -$1,500

Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 40 20 10 15 30 45 75 MC D 60 90 105 201355 $150¹65180195 Quantity per period (in thousands) Tools

Use the following to answer questions 3-6: The market for sweet potatoes consists of 10 identical firms. The market demand curve is given by Q-50-P. Each firm has a short-run total cost curve of C(q)-1+2q+q. What is the price in this market, P? O a. 0< P <5 O b. 5< Pt<10 Oc. 10< P <20 O d. 20< P<50 O e None of the above h.

Consider a perfectly competitive firm with marginal cost (MC) and average total cost (ATC) given in the figure. Price 12- MC ..... ATC Suppose the market price is 6. In this case, the firm's revenue will be and its 10- marginal revenue will be. If instead the market price were 8, the firm would earn: 8- A. positive economic profit 6- B. negative economic profit O C. zero economic profit 4- 2- 20 40 60 80 100 Output ......

1. Below is a demand schedule facing an individual firm. Complete the table by computing average revenue, total revenue, and marginal revenue. Then answer the following two questions: (a) How can you tell whether a firm is operating in a market that is perfectly competitive? (b) What relationship exists between average revenue and marginal revenue? Price $30 30 30 30 30 30 30 Quantity Average demanded revenue олдWN -о 1 2 3 4 5 6 $ Total Marginal revenue revenue $ $

Assume that there are 100 identical company in the perfectly competitive cabbage industry. Each firmhas a short-run total cost curve given by ST C = 0.5Q2 − 10Q + 300. Solve the following: 1. Assume the market demand curve is given by Q = 1500 − 50P, What is the equilibriumin this market?2. What is each company's total short-profit?3. Graph your results

4. Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 500 + 0.5q Marginal cost: MC = q 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 (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 q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total 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…

Inverse Demand Equation: P = 170 - 4Qd Marginal Costs=\$10; MR = 170 - 8Qd A perfectly -competitive firm would charge a price of: a . $ 20 b. $10 . c.$100  d. 0

Consider a competitive firm that is operating in the short run. The firm is maximizing profits and just breaking even. Assume it has to pay a monthly license fee of $100 and that the fee must be paid for as long as the firm operates. What should the firm do to maximize profits in the short run if the price of the license fee increases from $100 to $150? a. increase price Ob. increase output c. reduce output O d. not change output e. both a and c

Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 ------ 10 ..---- .---- 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm produces its profit-maximizing or loss-minimizing output, then it will make a equal to Loss; $420 Profit ; $240 Loss ; $180 Loss; $240