Question

The Hauserweyer Corporation produces and sells paper in a perfectly competitive market for wholesale generic printer...

The Hauserweyer Corporation produces and sells paper in a perfectly competitive market for wholesale generic printer paper, in which other firms charge a price of $150 for each 6-box set of paper. The firm’s total cost function is TC = 900 + 10Q + 2Q2, which includes all economic costs. Q denotes quantity of paper produced per week (in thousands of 6-box sets). Marginal cost is MC = 10 + 4Q.

  1. (6 points) How much output should Hauserweyer produce in the short run?
  2. (6 points) What price should Hauserweyer charge in the short run?
  3. (4 points) What is the dollar amount of Hauserweyer’s short-run weekly total profits from paper production and sales?
  4. (4 points) What adjustments should Hauserweyer anticipate in the long run?
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
Competitive Market Equilibrium. Syracuse Paper supplies printer paper in upstate New York. Like the output of...
Competitive Market Equilibrium. Syracuse Paper supplies printer paper in upstate New York. Like the output of other wholesale distributors, Syracuse Paper must meet strict guidelines and the printer paper supply industry can be regarded as perfectly competitive. Total and marginal cost relations are: TC = $3,600 + $5Q + $0.01Q2 MC = TC/Q = $5 + $0.02Q where Q is cases of printer paper per day. A. Calculate the firm's optimal output and profits if prices are stable at $20...
A firm sells its product in a perfectly competitive market where firms charge a price of...
A firm sells its product in a perfectly competitive market where firms charge a price of $80 per unit. The firm’s cost are: Total Costs: C(Q) = 40 – 8Q + 2Qsquare Marginal Costs: MC(Q) = – 8 + 4Q a) How much should the firm produce in the short run (to maximize profits)? b) What are the firm’s short run profits or losses? (Profits = Revenue – Total Costs) c) What changes can be anticipated in this industry in...
A firm sells its product in a perfectly competitive market where other firms charge a price...
A firm sells its product in a perfectly competitive market where other firms charge a price of $100 per unit. The firm’s total costs are C(Q) = 50 + 12Q + 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? a. No firms...
1) A perfectly competitive firm that sells fish has a marginal cost function given by MC...
1) A perfectly competitive firm that sells fish has a marginal cost function given by MC = 3q. The market has determined a price of P = 60. How many fish will this firm produce? 2)See the previous question about the perfectly competitive fish firm. Suppose that at this level of output, the firm has average costs of production of ATC = 42. How much total economic profit will the firm earn? 3) A perfectly competitive firm will shut down...
A firm sells its product in a perfectly competitive market where other firms charge a price...
A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm’s total costs are C(Q) = 60 + 14Q + 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? $ :
Suppose a firm sells its product in a perfectly competitive industry in Dubai, where all the...
Suppose a firm sells its product in a perfectly competitive industry in Dubai, where all the firms charge a price of 90 dirhams. The firm’s total costs are given by the following equation: TC = 50 + 10Q + 2Q2 (Kindly answer clearly) a) Calculate the MC function? b) Calculate the MR function? c) Calculate the profit maximizing level of output for the firm? d) Calculate the size of the profit? Show it graphically e) Is this industry SR or...
Let’s assume a wheat flour factory is perfectly competitive and the given price of wheat per...
Let’s assume a wheat flour factory is perfectly competitive and the given price of wheat per kg is $20. State the condition and identify when the firm maximizes profit. Also, calculate profit at the profit maximizing level of output. Output of Wheat (kg) Total Cost ($/kg) Total Revenue Marginal Revenue Average Revenue Marginal Cost 0 20 1 32 2 42 3 47 4 60 5 80 6 120 The market for widgets are perfectly competitive. TC = 2q2 + 5q...
You are a producer in a constant-cost perfectly competitive industry. Your long-run total, marginal, and average...
You are a producer in a constant-cost perfectly competitive industry. Your long-run total, marginal, and average costs are given by TC = 2Q² + 128, MC = 4Q, and ATC = 2Q+ (128/Q). What is the long-run equilibrium price?
Ophelia sells flowers in a perfectly competitive market. Her total cost function, including opportunity costs, is...
Ophelia sells flowers in a perfectly competitive market. Her total cost function, including opportunity costs, is TC = 175 + 0.05Q2 a) If the market price is $5, how many flowers will she sell? b) Should she operate in the short-run? Answer "yes" or "no" c) Should she operate in the long-run? Answer "yes" or "no"
Ophelia sells flowers in a perfectly competitive market. Her total cost function, including opportunity costs, is...
Ophelia sells flowers in a perfectly competitive market. Her total cost function, including opportunity costs, is TC = 175 + 0.05Q2 a) If the market price is $5, how many flowers will she sell? b) Should she operate in the short-run? Answer "yes" or "no" c) Should she operate in the long-run? Answer "yes" or "no"
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT