A firm sells a product in a purely competitive market . The marginal cost of the product at the current output is $5.25 and the market is$5.90 . What should the firm do?
Q: (Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple…
A: For a perfectly competitive firm, profit-maximizing quantity is such quantity where the price is…
Q: The market is perfectly competitive and there are 1,000 firms that produce paper. A table below sets…
A: A perfectly competitive firm in the short-run produces at P=MC, and MC should be rising after that.…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…
A: Given: TC= 599+17q+q2 MC=17+2q Q = 517-p Market price = $95
Q: A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue…
A: In perfectly competitive markets firms do not have any market power so they take the price as given.…
Q: In a perfectly competitive market, firms are earning normal profits. Firms will earn economic…
A: In a perfectly competitive market, firms are earning normal profits. Firms will earn economic…
Q: In a perfectly competitive market, assume the market price is $10 per unit, and the…
A: Answer; The profit amount at the profit-maximizing quantity is $90.
Q: Firms in the market for soccer balls are selling in a purely competitive market. A firm in the…
A: Average Variable Cost is defined as the variable cost per unit of a good. Average Total Cost is…
Q: Which of the following is not an assumption we make about perfectly competitive markets? a)Firms…
A: Perfect competition refers to the form of market in which large number of firms exists.
Q: Based on the table below for a perfectly competitive firm: Fixed Variable Total Quantity Cost Cost…
A: Marginal Cost = Change in Total Cost / Change in Quantity X = (1000-500)/(40-30) X = 500/10 = 50…
Q: In a perfectly competitive market a firm produces where equals to . If MR is greater than MC, the…
A: In perfect competition, there are large number of firms selling identical goods
Q: If all the apple orchards in the United States are earning zero economic profits, the apple market…
A: Profit is defined as the difference between the total revenue and total costs. Total revenue is the…
Q: a profit-maximizing firm finds that, at its current level of production, MR > MC, it will *…
A: marginal revenue= change in total revenue/change in quantity Marginal cost= change in total…
Q: Firms in the market for soccer balls are selling in a purely competitive market. A firm in the…
A: Answer: A firm in a perfectly competitive market maximizes its profit where the marginal revenue…
Q: Quantity Total Cost $20 1 $21 $23 $26 4 $30 A firm with the costs above sells in a perfectly…
A: "Perfect competition" refers to the structure of the market that has many sellers and buyers where…
Q: Derive the optimization condition of a profit-maximizing firm that operates in a perfectly…
A: In a perfectly competitive market situation, to maximize the profit, the firms set the optimization…
Q: f a competitive industry is incurring normal profits, output will
A: Competitive Industry is the industry sector where the firms are free to enter and exit from the…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 17 firms in…
A: Perfect competition refers to the market structure that has many buyers and sellers where everyone…
Q: “In a perfectly competitive market, firms always operate at the lowest per-unit cost." Is the…
A: A market(mkt) is said to be perfectly-competitive when there is a large number of buyers(b) and…
Q: lowglobes are produced by identical firms in a perfectly competitive market. There are 24 firms in…
A: In a perfectly competitive market, the profit-maximizing output level is achieved when the…
Q: Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering…
A: Marginal cost means the cost of producing and selling additional units. In a perfectly competitive…
Q: Perfectly competitive markets have ___________ sellers, each of which produces a _______ share of…
A: Perfectly competitive market is one where there is a large number of sellers and buyers in the…
Q: The marginal cost of a competitive firm is MC(Q)=4Q+7. The market price is 80. Suppose the current…
A: In a competitive market, the equilibrium occurs at a point where P=MC. where P is the market price…
Q: In a perfectly competitive market, each of the 10 consumers in in the market has demand…
A: Demand:P(q) = 100-5.7q q = 100
Q: Which of the following is not a characteristic of a perfectly competitive market? Goods offered for…
A: A perfectly competitive market is characterized by the presence of a large number of buyers and…
Q: Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The…
A: Accounting profit refers to the net income for a corporation or sales less costs. You may calculate…
Q: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…
A:
Q: A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long-…
A: Perfect Competition Some Preliminaries: Long-run equilibrium is characterized by zero economic…
Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?
A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…
Q: The hardware industry is perfectly competitive. Currently the price of a hammer is $5 and there is a…
A: Perfect Competition: A perfectly competitive market refers to a market structure where both…
Q: Which of the following markets is the closest to a perfectly competitive market? Question 10…
A: The structure of the market where consumers and producers tend to have full information and no costs…
Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in…
A: A short-run competitive equilibrium occurs when, given the businesses in the market, the price is…
Q: Imagine a firm in a perfectly competitive market has the short run cost function SRTC=200+10q+0.5q2,…
A: Short-run total cost (SRTC) The SRTC is a cost in the production process that has a short-term…
Q: Laura is operating a perfectly competitive firm. She sells her goods at $10 per unit. What is her…
A: The Perfect competitive market structure is the structure where a Large number of buyers and sellers…
Q: Time remaining: 00 :07 :05 Economics Assume that the market for Wheat is perfectly competitive in a…
A: Given the ATC = ATC(Q) = 1000/Q + 200 − 10Q + Q^2 / 3 MC(Q) = 200 − 20Q + Q^2 AVC(Q) = 200 − 10Q +…
Q: A perfectly competitive firm sells its good for $20. If marginal cost is four times the quantity…
A: Perfectly competitive market refers to the market structure in which there are large number of…
Q: A perfectly competitive firm is making losses in the short run. The market price will increase in…
A: A perfectly competitive market is one in which a large number of buyers and sellers exists. In this…
Q: Draw a long-run supply curve for a competitive market with identicalfirms, and describe its…
A: The long‐run market supply curve is found by examining the responsiveness of short‐run market supply…
Q: The price faced by the firm in a perfectly competitive market is $70 per unit. The average total…
A: Formulas of cost are: 1. Total Cost = Total Fixed Cost + Total Variable Cost 2. Average Total Cost =…
Q: If demand for the peach industry is given by P=100-.04Q and supply is given by P=.01Q.Assume the…
A:
Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in…
A: Glowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in…
Q: A price taking firm has zero fixed cost and increasing marginal cost. What quantity does it produce?…
A: A price-taking firm is such a firm that accepts the market price. A market price is a price that is…
Q: in the long-run, firms that operate in perfectly competitive markets should expect to earn exonomic…
A: Perfect competitive market is a market structure characterized by large number of buyers and sellers…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: The quantity, q = 100 The average revenue is given as = $10 The formula for total revenue is as…
Q: You witnessed new firms entering a competitive market. What can you infer for the existing firms in…
A: In a market, new firms generally enter if they can see an incentive to generate profit and it is the…
Q: Which of the followings is the basic trait of a Perfectly Competitive market? The market has only…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: A gizmo producer operates in a perfectly competitive market with a price of $100 for a can of…
A: Answer to the question is as follows :
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?The market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? $5.25 $4.25 $2.91 $2.20 Market demand schedule Quantity demanded (smoothies per hour) 1,000 Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 950 800 700 550 400 300 Output (smoothies per hour) 3 4 5 6 7 8 9 Producers of smoothies Costs Marginal cost (dollars per additional smoothie) 2.50 2.20 1.90 2.00 2.91 4.25 8.00 Average variable cost (dollars per smoothie) 4.00 3.53 3.24 3.00 2.91 3.00 Average total cost 3.33 7.33 6.03 5.24 4.67 4.34 4.25 4.44
- The shapes of firms' cost curves are important because they help us determine how the firm will produce. cost curves tell us the profitability of the firm. cost curves give us an idea of what a firm's total revenues will be at different output levels. they help us understand the market that the firm is in.The hardware industry is perfectly competitive. Currently the price of a hammer is $5 and there is a balance between the number of hammers purchased and the number of hammers manufactured. However, the minimum average total cost of hammers is $7.50. Which of these scenarios is most likely ? Select one: A. Firms will enter the industry and the price will fall to $4 B. Firms will enter the industry and the price will stay at $5 C. Firms will leave the industry but the price will stay at $5 D. Firms will leave the industry and the price will rise to $7.50The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=450-6P. Market Supply is given by Q=4P-13. Suppose 21 units are bought to the market. Consider the Marginal Cost of production for these 21 units. What is the maximum Marginal Cost of production of these 21 units? Enter a number only, do not include the $ sign. Hint: 21 doesn't have to be the market quantity.
- The market for paperback detective novels is perfectly competitive. Market Supply is given by P=5+3Q. If the Marginal Cost of the last unit sold is $65, how many units are sold in the market? Enter a number only. Remember fractions of goods are possible.The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than marginal cost. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Average total cost will decrease. The quantity supplied by each firm will decrease. The total quantity supplied to the market will decrease. Marginal cost will decrease. The price of fertilizer will increase.The market for paperback detective novels is perfectly competitive. We have two types of book publishers in the market- Small Press and Large Press. Each Small Press publisher's supply curve is given by P=76+5Q. Each Large Press publisher's supply curve is given by Q=2P-24 Suppose there is only 1 publisher of each type. What is market supply when market price is $60? Enter a number only. Remember, fractions of goods are possible.
- Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changed his price to $8. Why? What about a price of $5?Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.Suppose you are a seller in a perfectly competitive market, and you are not happy with the existing selling price of your product, would you raise the price even by a few centavos? explain your answer