Question

You are the manager of a firm that produces a product according to the cost function C(qi) = 160 + 58qi – 6qi2 + qi3. Determine the short-run supply function if:

a. You operate a perfectly competitive business.

b. You operate a monopoly.

c. You operate a monopolistically competitive business.

Answer #1

You are the manager of a perfectly competitive firm that
produces a product according to the cost function C(Q) = 160 + 58Q
− 6Q2 + Q3. Determine the short-run supply function for the
firm.

You are the manager and selling your product in a perfectly
competitive firm market. Your firm and other firms sell the product
at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2
Q2.
What level of output should you choose to maximize
profits?
What are your firm’s short run profits?
What will happen in your market in the long run? Explain.

A profit-maximizing firm in a perfectly competitive industry
produces y according to a cost function c(y) = 10+2y+y2. The price
of y is 10 per unit.
a) What is the firm’s optimal choice of how much y to produce
and how much profit do they make?
b) Would you expect the long run price of y in this industry to be
higher, lower, or the same as 10 per unit?
Explain your answer.

You are a manager of a monopolistically competitive firm, and
your demand and cost functions are given by q=20-p and
c(q)=20+q+q2.
Determine optimum price and optimum output?
Is this firm making the positive profit?
What will happen in the long run?

You are the manager of a monopolistically competitive firm and
your demand and cost functions are given by: P = 10 - 0.5Q and C =
104 - 14Q + Q2
a. Determine the profit maximizing price and quantity.
b. What the firm's profits or losses, given demand and cost
functions?
c. What long-run adjustments should you expect? Explain.
d. What is the equilibrium price in the long-run? Is the firm
realizing economic profits or incurring any losses?

Analyze a monopolistically competitive firm, oligopoly, and
monopoly that you have recently purchased/consumed a product. Make
sure to relate your examples to the market characteristics. Explain
how these firms will operate in the long run given the search for
profits.

You are the manager of a monopolistically competitive firm and
your demand and cost functions are Q = 36 – 4P and C(Q) = 4 + 4Q +
4Q2.
Determine the profit maximizing price and level of
production
Calculate your firm’s maximum profits
What long-run adjustments should you expect? Explain.

You are the manager of a monopolistically competitive firm, and
your demand and cost functions are given by Q = 18-3P and C(Q) =
120-12Q+3Q^2.
Find the inverse demand function. Determine the profit
maximizing price and level of production. Calculate your firm's
maximum profits.

Suppose a representative perfectly competitive firm has the
following cost function: TC = 100 + 5Q2. The short-run
market demand and supply are given by: QD = 600 - 40P
and QS = 20P. How many firms are in the market in the
short-run?

Find the short-run supply function of a perfectly competitive
firm for the given short-run cost functions - (a) c(q) = q 1.5 + 8q
0.5 + 16 for all q ? 0. Suppose there are ten identical firms in
the industry. The short-run market demand curve is p = 100 ? Q. (a)
Find the short-run market equilibrium for part (a) (b) What is the
value of consumers’ and producers’ surplus for part (a)

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