Question

A perfectly competitive firm’s total cost function is given by:
TC = 400+4Q^{2} . How much output does the firm produce
**in the long-run?** What is the price of the product
**in the long-run?**

Answer #1

Ans.

A perfectly competitive firm’s total cost function is given by:
TC = 200+2Q2 . How much output does the firm produce
in the long-run? What is the price of the product
in the long-run?

A perfectly competitive firm’s total cost function is given
by: TC = 400+4Q^2 . The minimum point of average total cost (ATC)
is reached at Q=10. You also know that the market demand function
for this product is: QD=100-P. How many firms are in the market in
the long-run? (Hint: first you need to find the price in the
long-run)
Select one:
a. N=6
b. N=4
c. N=2
d. None of the above

a) Assume a perfectly competitive firm’s total cost (TC) for
different levels of output Q is given by:
Q- a) Assume a perfectly competitive firm’s total cost (TC) for
different levels of output Q is given by:
Q TC
0 50
1 100
2 140
3 170
4 190
5 210
6 230
7 260
8 300
9 350
10 410
At a price of $35 how many units will be produced in the short
run? At this price how...

A perfectly competitive firm’s total cost function is given by:
TC = 200+2Q2 . You also know that the market demand
function for this product is: QD=100-P. How many
firms are in the market in the
long-run?
Select one:
a. N=10
b. N=8
c. N=6
d. None of the above

1. Suppose a perfectly competitive firm has a cost function
described by TC = 200Q + Q^2 + 225 Each firm’s marginal revenue is
$240. a. Find the profit maximizing level of output. b. Is this a
short-run or long-run situation? How do you know? c. Assuming that
this firm’s total cost curve is the same as all other producers,
find the long-run price for this good.

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’s total cost function is given by: TC = 5000 + 4100Q –
8Q2 + 0.004Q3 What is the
minimum price the firm can accept so it does not
have to shut down in the short-run?

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?

(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’s total cost is TC = 25 + 0.5Q2.
The firm can sell as much as it wants at a market determined price
of $50. What will happen if there are no barriers to entry?
Firms will enter the industry.
Firms will exit the industry.
Firms will neither enter nor exit the industry.
The firm will shut down.
None of the above.

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