A competitive firm has a total cost is given by: TC = 0.2q² + 12q + 200. If the market price is $60. What is the firm short run supply curve? O a. q = 2.5P - 30 O b. P = 0.2q2 + 12 O c. q = 0.4P + 12 O d. P = 0.2q + 12 Clear my choice
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- A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?Suppose the short-run demand for a product is give byQD= 200−2P. Supposethe short-run supply curve isQD= 3P−50. (a) What is the market clearing, or competitive equilibrium price and quan-tity. (b) If the existing firms’ average total cost is 40, and the industry is a perfectlycompetitive, constant returns to scale industry, in the long run willpricerise or all? Explain.ATC Price MC AVC 8. 7- 9. 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. The market price is $5. In the short run, the firm should Choose one: * A produce the output at which MR = MC and earn a profit. B. produce the output at which MR = MC and suffer a loss. O C. shut down the operation. 9 D. There is not enough information to answer the question. 1st attempt
- Lasguns are produced by identical firms in a perfectly cokmpettitve market. Each frim's Total cost fucntion is TC = 551+16q+q^2 and Marginal Cist frunction is MC = 16+2q. Market demand is P = 216 - 2Q. What is the long-run equilibrium market price?A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.\a. What is its profit?b. What is its marginal cost?c. What is its average variable cost?d. Is the efficient scale of the firm more than, less than, or exactly 100 units?ATC MC 50 40 AVC 30 20 8 10 11 12 Quantity (per day) a. If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output. Show your calculations b. If the price decreases to $25. c) Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Explain your answer. d) Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium? Explain your answer. Price and costs (dollars)
- OutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?esti a firm operating in a purely competitive market MC 40 36 32 28 24 ATC 20 16 AVC 12 8 Q 8 12 16 20 24 28 32 26. What would be the short-run equilibrium quantity produced by this firm if the market price were $32? 9. Cligk Saug and Submit to caue and suhmit Click Save All Answers to save all answers. %24 4.Please solve Fast i give 2 like Which of the following is not true according to Figure 1? Hide Transcribed Text Figure 1: Cost and Price AC : Average Cost, AVC: Average Variable Cost, and MC: Marginal Cost A) The firm earn a zero economic profit when it produces 40 unit at the price of $5.7 per unit. B) The minimum acceptable price (the shut-down point) is $4.3 per unit. C) The firm's supply curve is its MC curve above minimum of AVC. D) The firm earns an economic profit when the price exceeds $4.3 per unit.
- True/False A perfectly competitve firm's supply curve is its marginal cost curve above the minimum average variable cost.Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following production cost schedule. q Total Cost ATC AFC MC0 10 100 12 200 16 300 26 400 38 500 75 600 120 What output or q (in the units of 10) is the most efficient production level? If the market price is $0.10 then what output or q (in the units of 10) is the most profitable production level? (This is the answer im looking for)
