Question

Suppose that each firm in a competitive industry has the following cost curves: Total cost: TC...

Suppose that each firm in a competitive industry has the following cost curves: Total cost: TC = 32 + 1⁄2 Q2; where Q is the individual firm’s quantity produced. MC=Q. Assume the market price is $14 per unit. If the market price falls, how much will each firm produce in the long run? a. 32 b. 8 c. 11 d. 64

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A competitive industry currently consists of 50 identical firms. An individual firm’s total cost function is...
A competitive industry currently consists of 50 identical firms. An individual firm’s total cost function is given by TC = 1⁄2 q2 + 450 and its marginal cost MC = q, where q is the quantity supplied by the firm. Market demand is given by Q = 4000 - 5P, where Q is the market quantity demanded and P is the market price. In the long run market equilibrium, how much will each firm produce?
Suppose in Pakistan, all the firms are identical with identical cost curves which mean industry is...
Suppose in Pakistan, all the firms are identical with identical cost curves which mean industry is perfectly competitive. Now please consider this following information about the industry: A representative firm’s total cost is given by the equation TC = 100 + q2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 – 2Q where Q is the market...
The total cost function for each firm in a perfectly competitive industry is TC(y)=100+8y^2 . Market...
The total cost function for each firm in a perfectly competitive industry is TC(y)=100+8y^2 . Market demand is q=2000-(market price) . Find: the long run equilibrium firm quantity (y), market quantity (q), amount of firms, and price.
(a) Suppose the total revenue (TR) and total cost (TC) curves of the perfectly competitive firm...
(a) Suppose the total revenue (TR) and total cost (TC) curves of the perfectly competitive firm are given by the following set of equations: TR = 100Q and TC = Q2 + 4Q + 5, where Q is the output. Derive the firm’s profit maximizing output and calculate the total and average profit earned by the firm at this level of output. (b) How do you know that the equations above could not be referring to a monopoly?
A perfectly competitive firm in the short run has Total Cost and Marginal Cost functions given...
A perfectly competitive firm in the short run has Total Cost and Marginal Cost functions given by TC(Q)=9+Q+Q2 and MC(Q)=1+2Q, respectively. The firm faces a price of P=$17. Determine the output that the firm will produce and the profit. Show the solution graphically.
Suppose a representative firm in a perfectly competitive industry has the following total cost of production...
Suppose a representative firm in a perfectly competitive industry has the following total cost of production in the short run: TC = Q3 - 60Q2 + 3000Q. a) What will be the long run equilibrium quantity for the firm? What will be the long run equilibrium price in this industry? b) If the industry demand is given by QD = 12400 - 4P. how many firms will be active in the long- run equilibrium? c) Suppose the firm faces a...
2. Suppose a representative firm producing in a perfectly competitive industry has the following cost function:...
2. Suppose a representative firm producing in a perfectly competitive industry has the following cost function: C(q) = q2 + 8q + 36 a. Solve for the firm’s average cost function. b. At what level of q is average cost minimized (i.e. what is the minimum efficient scale for the firm)? What is the value of average cost at this level of q? c. Suppose all firms in this industry are identical and the demand function for this industry is...
Suppose a representative firm producing in a perfectly competitive industry has the following cost function: C(q)...
Suppose a representative firm producing in a perfectly competitive industry has the following cost function: C(q) = q2 + 8q + 36 a. Solve for the firm’s average cost function. b. At what level of q is average cost minimized (i.e. what is the minimum efficient scale for the firm)? What is the value of average cost at this level of q? c. Suppose all firms in this industry are identical and the demand function for this industry is as...
A perfectly competitive firm has the following total cost and marginal cost functions:      TC =...
A perfectly competitive firm has the following total cost and marginal cost functions:      TC = 100 + 10q – q2 + (1/3)q3      MC = q2 – 2q +10      a)    For quantities from 0 to 10 determine: TC, TFC, TVC, and MC. b)    For quantities from 0 to 10 determine: ATC, AFC, and AVC. c)    Assume P (MR) equals 45. For quantities from 0 to 10 determine: TR and profit. d)    At what quantity is profit maximized?...
Suppose that each firm in a perfectly competitive market has a short-run total cost of TC...
Suppose that each firm in a perfectly competitive market has a short-run total cost of TC = 99 + 100Q – 6Q2 + 4Q3 . What is the firm's shutdown price?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT