Question

A perfectly competitive firm’s total cost function is given by:
TC = 200+2Q^{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. The firm will produce 10 units of product and the price of product is $40.

A perfectly competitive firm’s total cost function is given by:
TC = 400+4Q2 . 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 = 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) 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 = 10000 + 8200Q –
16Q2 + 0.008Q3 What is the minimum price the firm can accept so it
does not have to shut down in the short-run?
Select one: a. 50 b. 100 c. 200 d. None of the above

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) 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 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.

Consider a firm with a short run Total Cost (TC) given by TC=200
+ 30Q - 5Q^2 + Q^3.
What is the firm’s fixed cost? What is the firm’s marginal cost?
What is firm's shut down price?

A firm has total cost function: ?(?) = ???? + ??? + ???
G) In a competitive market, what is the lowest price at which
the firm will supply a positive quantity in long-run
equilibrium?
H) In a perfectly competitive market, what price maximizes the
firm’s profit?
I) How much output would the firm supply at the price in part
H)
J) At what quantity is the firm’s marginal cost equal to its
average cost?

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

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