A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total costs as C(Q) = 60+14Q+2Q².
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- 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. What is its profit? What is its marginal cost? What is its average variable cost?A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q2. b.What price should the firm charge in the short run? c.What are the firm's short-run profits? d.What adjustments should be anticipated in the long run?A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 50 + 10Q + 2Q2. a. How much output should the firm produce in the short run? b. What price should the firm charge in the short run? c. What are the firm’s short-run profits? d. What adjustments should be anticipated in the long run
- Good Grapes is selling grapes in a purely competitive market. Its output is 5,000 pounds, which it sells for $5 a pound. At the 5,000-pound level of output, the average variable cost is $4.00, the marginal cost is $4.25, and the average total cost is $4.50 a pound. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine the optimal level of output?A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm estimates its total costs as C(Q) = 40 + 10Q + 2Q2. a. How much output should the firm produce in the short run? units b. What price should the firm charge in the short run? $ c. What are the firm’s short-run profits? $ d. What adjustments should be anticipated in the long run? multiple choice Exit will occur since these economic profits are too low. No firms will enter or exit at these profits. Entry will occur until economic profits shrink to zero.A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?
- Donald is a producer in the perfectly competitive market for cronuts - a pastry that is half croissant, half donut. Total Fixed Cost Total Variable Cost Quantity (cronuts) TFC ($) TVC ($) 125 5 125 10 10 125 18 15 125 32 20 125 52 25 125 82 If Donald's profit-maximising quantity is 20 cronuts, what is the market price per cronut at that quantity? Answer to the nearest whole number (with no decimal places or $ sign).A firm produces a product in a perfectly competitive industry and has a total cost function TC= 50+4q+2q². a. At the short-run market price of $20, the firm is producing 5 units of output. Is the firm maximizing its profit? Explain. b. What quantity of output will the firm produce in the long run, assuming there is no change in cost structure? What will be the long-run equilibrium price? c. Graphically depict the long-run equilibrium for an individual firm within this market.A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 202. Instructions: Round up your answers to no decimals. a. How much output should the firm produce in the short run? Q = b. What price should the firm charge in the short run? P = $ %3D c. What are the firm's short-run profits? Profits = $ %3D d. What adjustments should be anticipated in the long run? (А, В, С, ог D) A. Exit will occur since accounting profits are always zero in the long run. B. No firms will enter or exit at these level of profits. C. More firms will enter the industry, incresing the supply, until economic profits shrink to zero. D. More firms will enter the industry since economic profits are positive.
- 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 - MankiwThe market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? $5.25 $4.25 $2.91 $2.20 Market demand schedule Quantity demanded (smoothies per hour) 1,000 Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 950 800 700 550 400 300 Output (smoothies per hour) 3 4 5 6 7 8 9 Producers of smoothies Costs Marginal cost (dollars per additional smoothie) 2.50 2.20 1.90 2.00 2.91 4.25 8.00 Average variable cost (dollars per smoothie) 4.00 3.53 3.24 3.00 2.91 3.00 Average total cost 3.33 7.33 6.03 5.24 4.67 4.34 4.25 4.44Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.
