Question

Intergalactic market for corn is considered perfectly competitive and is currently in equilibrium at a price...

Intergalactic market for corn is considered perfectly competitive and is currently in equilibrium at a price of $5,000 per ton of corn. Omicron Persei 8 farmers corn at an average total cost given by

ATC = Q + 1,500,000/Q and marginal cost given by MC = 2Q, where Q measures tons of corn.

1. If the Omicronian farmers are maximizing profit, how many tons of corn will they produce?

2. Given the Omicronian production of corn, what is the average total cost of their production?

3.How much profit will the Omicronian farmers earn from their corn production?

4.In the long run will the intergalactic corn market expand or contract?

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
Intergalactic market for corn is considered perfectly competitive and is currently in equilibrium at a price...
Intergalactic market for corn is considered perfectly competitive and is currently in equilibrium at a price of $5,000 per ton of corn. Omicron Persei 8 farmers corn at an average total cost given by ATC = Q + 1,500,000/Q and marginal cost given by MC = 2Q, where Q measures tons of corn. In the long run will the intergalactic corn market expand or contract? A) Expand because there are positive profits, which create incentive for the firms to enter...
Firm A is operating in a perfectly competitive market The market price for its product is...
Firm A is operating in a perfectly competitive market The market price for its product is $45 Its total cost function is: TC(Q)=2900+19Q+0.01Q2 Its marginal cost function is MC(Q)=19+0.02Q Calculate PROFITS at the profit maximizing quantity and price
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?
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...
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...
Consider a price-taking firm in a perfectly competitive market. The market equilibrium dictates that the price...
Consider a price-taking firm in a perfectly competitive market. The market equilibrium dictates that the price is $14.  Use this information, along with the information given, to complete the table below.  Remember, economic profit is total revenues minus total costs. Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Economic Profit Average Total Cost 0 - 10 - - - 1 24 2 34 3 42 4 49 5 57 6 67 7 81 8 99 9 123 b. What is the...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. The...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. The market demand for this product is given by the equation: (Kindly answer clearly) P = 1000 – 2Q Also, the market supply equation is given by the following equation: P = 100 + Q. Furthermore, suppose that a representative firm’s total cost is given by the equation: TC = 100 + q2 + q What is the equilibrium quantity and price in this market...
We have the following information about a profit-maximizing firm in a perfectly competitive market: Price =...
We have the following information about a profit-maximizing firm in a perfectly competitive market: Price = 95 Quantity = 1000 Average Total Cost (ATC) = 95 Average Variable Cost (AVC) = 83 Which of the following is correct? The firm is making a loss The firm is making an economic profit The firm should shut down The firm should keep operating
Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs...
Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs are as follows: Output per Day (Q) Total Cost (TC) 0 $10.00 1 $20.50 2 $24.50 3 $28.50 4 $34.00 5 $43.00 6 $55.50 7 $72.00 8 $93.00 9 $119.00 1) Make a table with Quantity (Q), Total Cost (TC), Fixed Cost (FC), Variable Cost (VC), Average Total Cost (ATC), Average Variable Cost (AVC), Marginal Cost (MC), and Marginal Revenue (MR) on it. 2)...
The market for bauxite is perfectly competitive. Market inverse demand is given by PD(Q)=500-Q, where price...
The market for bauxite is perfectly competitive. Market inverse demand is given by PD(Q)=500-Q, where price is measured in dollars per ton and Q is measured in million of tons. Market inverse supply of bauxite is PS(Q)=100+Q, where price is measured in dollars per ton and Q is measured in millions of tons. -Calculate the equilibrium price and quantity in this market. Represent your solution using a graph. -Calculate producer and consumer surplus. Identify consumer and producer surplus on a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT