Question 5 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the Consumer Surplus in a competitive equilibrium in this economy? 18 36 20 12 15
Q: THIS IS A MULTIPLE ANSWER QUESTION. IT MAY HAVE MORE THAN ONE CORRECT ANSWER. Imagine a competitive…
A: The firm maximizes profit by producing at P=MC and the firm makes zero economic profit at…
Q: 2 Imperfect competition (2022) Two companies, Thomas Inc and Edison Inc, are the only producers of…
A: Introduction Here are the two companies: Thomas Inc. and Edition Inc. Demand of electrical vehicles…
Q: Under perfect competition, if the market demand function is Qdx = 120-20Px and the market supply…
A: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the…
Q: Consider a manufacturing firm that occupies one hectare of land. The firm transports over half of…
A: Distance traveled by interstate highway = 4 miles The distance traveled to reach the airport = 7…
Q: The demand curve for guitars is given by Pd = 200 - 5Qd and supply for guitars is given by Ps = 20 +…
A: demand function is Pd = 200 - 5Qd and supply function is Ps = 20 + Qs Total surplus is : Consumer…
Q: Suppose that there are 110 identical firms in the market, each with a cost function C(q) = 90 +…
A: A perfect competition market consists of a large number of sellers who are price takers as the…
Q: Two separate firms produce the complimentary goods of left shoes and right shoes. Assume the demand…
A: In economics, the marginal cost is the alternate withinside the overall cost that arises whilst the…
Q: Suppose there are 1,000 hot pretzel stands operating in New York City. Each stand has the usual…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Assume that the cannabis firm called Aphria Inc. purchases resources a and b under perfectly…
A: The profit is maximum at:MP* price equal to input prices
Q: Consider the following demand curve for good X which is produced by Firm 1 and 2: Price=100-2*0₁-2₂…
A: We have two firms with same demand and different cost functions.
Q: The following graph shows the demand curve for a good and the long run average cost curve for a…
A: The long-run normal expense curve shows the most minimal all-out cost to create a given degree of…
Q: Suppose a firm faces the demand function q = 600 – 6P. The firm's total production costs are given…
A: Profit maximizing condition for a perfectly price discriminating monopolist is given by - MC(q) =…
Q: Consider a market for a portable hard drive. Suppose that there are 50 firms producing the identical…
A: Given, Qd = 1800 - 10P C(q) = 8+Q2i/2
Q: Question 1 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: There is monopoly in the market because there is single seller. The profit maximizing quantity in…
Q: Suppose Firm #1 dominates a market for widgets priced at $100/unit with a marginal cost of $60/unit.…
A: If we give a discount then it means we are increasing our marginal cost. Thus, marginal cost should…
Q: An industry face the demand curve Q=400-4P, where each firm produces an indentical good at a…
A: In a Bertrand oligopoly, companies choose prices (not quantities) separately to maximize profits.…
Q: Suppose a firm has market power and faces a downward sloping demand curve for its product, and its…
A: Since it is given that the firm has market power and it faces downward sloping demand curve and…
Q: Under pure competition, the supply curve for a certain product is given by: P= Q2 + 100 , the demand…
A: Given information: Supply curve, P =Q2+100Demand curve, Q = 40 -125Por P = 1000 - 25Q
Q: Consider the quantity competition between two firms, A and B, in 380 — 2QA - Qв, where P denotes the…
A: We have two firms with different marginal cost of production.
Q: Suppose we have a perfectly competitive market that is efficient. Which of the following, when…
A: Perfect competition is theoretically a monopoly that allows a company to charge any price, as only…
Q: Table 14-11 Suppose that a firm in a competitive market faces the following prices and costs: Price…
A: In a perfectly-competitive market(mkt) there are large number of buyers(b) and large number of…
Q: Please Answer both questions briefly Q1. What are the equilibrium conditions for a firm operating…
A: Note: Since you've asked multiple question, we will solve the first question for you. If you want…
Q: Suppose perfect competition prevails in the market for hotel rooms. The current market equilibrium…
A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…
Q: Suppose the demand function for widgets is Q(p) = 60 – p, and all firms that produce widgets have…
A: We are given the demand function for widgets as Q(p) = 60 – pAnd, the cost function is given as C(q)…
Q: Consider the market demand curve given by q = 100 – 10p. Assume there are two firms in the industry…
A: When each firm engages in a price war, each firm would keep on undercutting the other firm in terms…
Q: Determine the reaction function for each firm. Calculate each firm's equilibrium level of output.…
A: An inverse demand function is the inverse function of a demand function. The inverse demand function…
Q: Assume that there are two firms in the market described by the inverse demand function…
A: Monopoly refers to the market in which a firm charges a different price above the marginal cost. It…
Q: Suppose a firm has constant costs of production of $10 (MC = ATC = $10) and there are two groups of…
A: Given that the firm can discriminate and the costs are $10 for every unit. The revenue from students…
Q: Question 1 Scenario 14-1 Assume a certain firm in a competitive market is producing Q = 1,000 units…
A: In a competitive market, it can be said that the market price will be the marginal revenue of a firm…
Q: Suppose that a chemical manufacturing plant is releasing nitrogen oxides into the air, and these…
A: In economics, one of the major causes of market failure is the presence of externalities. An…
Q: Problem 15. Given the demand and supply functions: p° = -q – 4q + 68 p° = q² – 2q – 12 find (a) the…
A: Consumer surplus is a measure to calculate the surplus that consumers would earn. It is the…
Q: Q1. Suppose perfect competition prevails in the market for hotel rooms. The current market…
A: Market Equilibrium is determined at the point at which market demand is equal to market supply. The…
Q: A firm’s production function is Q = 10 + 30L - .5L2 + 30K – K2, and its competitive demand function…
A: Answer A firm’s production function is Q = 10 + 30L - 0.5L2 + 30K – K2 MPL = = 40 - L At…
Q: Suppose the daily demand function for pizza in St. Catharines is Qd = 1525 – 5P. For one pizza…
A: Given, Qd = 1525 − 5P C(q) = 3q+0.01q2 MC = 3 + 0.02q
Q: Supposed that solar panels are produced in a perfectly competitive industry, which of the following…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: Consider a competitive market where there are two types of firms, Type A and Type B, with total cost…
A:
Q: 248 249 250 251 252 253 254 9,622.35 32.60 1 32,60 9,654.90 32.55 1 32,55 9,687.40 32.50 1 32.50…
A: MRP is the marginal revenue product which is the demand for the input.
Q: Suppose that there are 177 identical firms in the market, each with a cost function C(q) = 100 +…
A:
Q: Assume that banana squash is traded in a perfectly competitive market in which the demand curve…
A: A perfectly competitive market is the market in which there are many sellers selling homogeneous…
Q: Refer to Figure 14-7. Suppose a firm in a competitive market, like the one depicted in graph (a),…
A: The perfect competition is a type of market where there are a large number of buyers and sellers of…
Q: Consider the Bertrand competition setup with 2 firms producing identical goods. The market demand is…
A: In the Bertrand model, there exists two firms and both the firms produce identical products and they…
Q: Homework (Ch 14) 1. There must be many buyers and sellers-a few players can't dominate the market.…
A: In a competitive market, there are various sellers selling identical goods. Firms are price takers…
Q: Question 3 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: As the firm is a single seller in the industry it will maximize its profit at MR=MC
Q: Question 2 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm…
A: Producer surplus is an advantage taken by the producer due to the variations in the price received…
Q: given the demand function Pd=25-Q2and supply function Ps = 2Q+1. Assuming pure competition, find the…
A: The demand curve measures the amount of goods and services that a consumer is willing to buy at…
Q: Assume that there are two firms in a market with inverse demand function P(Q) = 120-Q. Both firms…
A: Consumer surplus means a situation in which the willing to pay price by the consumer is higher than…
Q: Problem 2 (2 points) Given the demand function P = - QD2 – 2QD + 64, and the supply function P =…
A: Given: P = - QD2 – 2QD + 64 P = QS2 – 2QS + 14.
Q: The demand curves for cases of Coke and Pepsi are given respectively by Qc(Pc. Pe) = 200 - 10pc +…
A: Cournot duopoly is an oligopoly form of market where the producers compete in the quantity to be…
Question 5
Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the
18
36
20
12
15
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Question 2 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the Producer Surplus in a competitive equilibrium in this economy? 2 1 6 0 12Suppose that a competitive firm's marginal cost of producing output q (MC) is given by Assume that the market price (P) of the firm's product is $15. What level of output (q) will the firm produce? The firm will produce units of output. (Enter your response rounded to two decimal places.) What is the firm's producer surplus? Producer surplus (PS) is $ (Enter your response rounded to two decimal places.) Suppose that the average variable cost of the firm (AVC) is given by MC(q)=3+2q. AVC(q)=3+1q. Suppose that the firm's fixed costs (FC) are known to be $50. Will the firm be eaming a positive, negative, or zero profit in the short run? In the short run, the firm's profit will be positive Enter your answer in each of the answer boxes.3. What is the market equilibrium quantity?
- Let us consider an economic sector characterized by the following data. The (inverse) demand function is p = 20 -2g with q the quantities produced by the firms in the sector and p the price. The total cost of production for any firm in the sector is: CT(a) = q* - 4g +5 a) First, assume that there is only one firm, firm 1, in the industry. Calculate the price, quantity produced and profit of firm 1 in a monopoly situation that wants to maximize its profit b) Firm 1 seeks to deter the entry of another firm, firm 2, into its market through a sustainable monopoly strategy. Calculate the equilibrium price, quantity and profit of firm 1 given this strategyUse the following to answer questions (1) - (14): Suppose the local market for flat glass, considered a homogeneous product, consists of two firms, A and B. The market demand is given as: Q = 40 - 2P, where Q is the market quantity and P is the price. A's total cost (TC) is: TC, = 6°q4, where q, is the quantity produced and sold by A B's total cost (TC3) is: TC, = 8q2, where qg is the quantity produced and sold by B [1] The market structure these two firms operate in is definitely not monopolistic competition. A. True В. False [2] Behaving as Cournot competitors, at the Nash equilibrium A produces a quantity closest in value to: A. 9 В. 11 C. 13 D. 15 [3] Behaving as Cournot competitors, at the Nash equilibrium the market quantity is closest in value to: A. 10 В. 13 С. 17 D. 20 [4] Behaving as Cournot competitors, at the Nash equilibrium the market price is closest in value to: A. 9 В. 11 C. 15 D. 19 [5] Behaving as Cournot competitors, at the Nash equilibrium B's profit is closest in…Question 3 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the amount of the good produced in a competitive equilibrium in this economy? 7 4 6 3 5
- The demand curve for guitars is given by Pd = 200 - 5Qd and supply for guitars is given by Ps = 20 + Qs. What is total surplus at equilibrium? 2,700 2,250 450 5,400 Suppose that a firm in a competitive industry has the following cost functions: Total Cost: TC = 100 + q² Marginal Cost: MC = 2q If the price of the good is $200, what is the firm's profit in the short-run equilibrium? 6400 1000 3200 9900consider a market with a large number of firms, an upward sloping supply curve S0, and a downward sloping demand curve D0. We will start with the assumption that the market is perfectly competitive; hence, the supply curve S0 is the sum of the marginal cost curves of all the firms. Assume the market is perfectly competitive. Indicate the original competitive equilibrium price P0, equilibrium quantity Q0, the resulting Consumer Surplus CS0, the resulting Producer Surplus PS0, and the “socially optimal” output (the output the Benevolent Dictator would choose) QSO on your graph. Graphically indicate the size of Dead-Weight Loss DWL0 if there is such a loss. Question - Now suppose that scientists discover that this particular product has a significant Positive Externality. The Demand curve is a depiction of marginal private benefit (MPB). However, the existence of the positive externality means that for every given output level, Marginal Social Benefit (MSB) is higher than Marginal…Question 1 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm in the market, and demand is Q(p)=10-p. What is the price in a competitive equilibrium in this economy? 3 7 4 5 6
- PQ4.2 Case: A firm is operating in a competitive market. Your Cost of Production is given by C = 200 + 2q², where the Level of Output is (q) and the Total Cost is (C). The Marginal Cost of Production (MC) is 4q; the Fixed Cost (FC) is $200. Given: C=200+2q² q=Level of Output C = Total Cost MC = 4q| FC = $200 Questions: (i) If the price of watches is $100, how many watches should you produce to Maximize Profit? (ii) What will the Profit Level be? (iii) At what Minimum Price will the firm produce a Positive Output?The market demand for Gucci bags is given by the function P = 75 - 1.5Q. P is price per bag, and Q is output per time period. The market supply is given as P = 25 + 0.50Q. A typical competitive firm that markets this type of bag has a marginal cost of production of MC = 2.5 + 10q. a) Calculate the market equilibrium price for the bags as well as the output rate in the market. b) Calculate how much the typical firm will produce per time period at the equilibrium price. c) If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?Two farmers produce milk for local town with local milk demand given by Q=100-1/3P (P denotes price measured in Rands, Q denotes the quantity measured in litres). Both farmers have the same cost function given by TC=150+2q (where q denotes output)a. What output should farmer 1 produce if he or she expects their rival to produce 20 units?