Consider a competitive industry. The demand is Qp(P) = 20-P and the supply is Qs(P) = P (where quantities are in units and prices are £ per unit). Producer surplus in this industry is: 25 50 75 100
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A: f(x1,x2) = 8x1x2p1=$2.50p2=$4Sub to: C = 2.5x1+4x2
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- Each firm in a perfectly competitive industry has total costs c = q2 – n + 16. Market demand is Q = 24 – 2p. Government introduces a tax of t = 1 dollar per unit. After entry/exit there will be n2 = firms in this industry.Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175? Can it be done in Excel?A local microbrewery has total costs of production given by the equation TC=500+10q+5q^2. This implies that the firm's marginal cost is given by the equation MC=10+10q (you do not need to be able to show this). The market demand for beer is given by the equation QD=105 – (1/2)*P. a) What is the break even quantity in short run.
- PQR Ltd operates in a perfectly competitive market. The following equations were developed for the company to assist in its analysis of demand and supply conditions in the market. Qd= 610-50p Qs= 400- 20p Where Qd is quantity demanded; Qs is quantity supplied; and p is price Required: (e) Calculate the price at which there is a shortage of 50 units. (f) Calculate the price at which there is a surplus of 40 units.Consider a competitive market in which the market demand for the product is expressed as P = 75 ‑ 1.5Q, and the supply of the product is expressed as P = 25 + 0.50Q. Price, P, is in dollars per unit sold, and Q represents rate of production and sales in hundreds of units per day. The typical firm in this market has a marginal cost of MC = 2.5 + 10q. Determine the equilibrium market price and rate of sales (output). Show your working. Determine the rate of sales (output) of the typical firm, given your answer to part (i) above. If the market demand were to increase to P = 100 ‑ 1.5Q, what would the new price and rate of sales in the market be? What would the new rate of sales (output) for the typical firm be?. Show your working If the original supply and demand represented a long‑run equilibrium condition in the market, would the new equilibrium (iii) represent a new long‑run equilibrium for the typical firm? ExplainDemand and Supply equations of a particular market are as follows.Qd = 2100 – 7PQs = – 1200 + 5PWhere, Qd is the quantity demanded, Qs is the quantity supplied and P is the market price. By all means, this market is considered as a perfectly competitive market. The average cost information of a selected firm in this market is given below.AFC = 450/QAVC = (155Q + 2Q2)/Q a) Calculate the profit maximizing output level of the firm based on Marginal approach.b) Calculate the profit (in Rupees) at the profit maximizing output level.
- M10. A theatre charges 12$ per tickets for musical shows. Average attendance at these shows is 16,000. However, last year they charged 13$ and the average attendances were 13,5000. Required Assuming attendance to be purely price dependent. What is demand function for the theatre?A firm has the following total costs, where Q is output and TC is total cost: QTC0$ 1001110213031604200525063107380846095501065011760 Say the firm is in a perfectly competitive market. If the current market (equilibrium) price is $ 70, at what output level will the firm as a profit maximizer produce at? Say the market price rises to $ 100. At what output level (as a perfect competitor) will this produce at? How much profit is the firm making at a price of $90? Based on this calculation, do you expect firms to enter or leave this market? Say instead this firm is a monopoly. If the firm maximizes profit at an output level where marginal revenue equals $ 80, what output level will this be?The long-run cost function of one of the identical carrot-producing firms is C(q) = 45q-q² +0.01g³. The market demand curve is Q = 10,000 - 190p. Now, the government starts collecting a specific tax, t = 15, on the carrot market The market quantity demanded is 8500, the number of firms is 200 The market quantity demanded is 2850, the number of firms is 53 The market quantity demanded is 3350, the number of firms is 67 The market quantity demanded is 5420, the number of firms is 156 None of the answers hold
- 6) Suppose each firm's long-run cost function in a perfectly competitive industry is given by C(q) = q 4q+8q. Firms will enter the industry if profits are positive and leave the industry if profits are negative. Assume that the corresponding demand function is D = 4400 - 100P. (i) Compare the equilibrium price and quantity before and after the imposition of a 2 cents tax per unit sold. (ii) How much of the tax (per unit) is passed on to the consumers?A firm faces the following average revenue (demand) curve: P = 10,000 – Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by TC = 500Q + 300,000. Assume that the firm maximises profits and is the only company selling in the market. a. What is the level of production, price, and total profit per week? b. If the government decides to levy a tax of 1,000 cents per unit on this product, what will be the new level of production, price, and profit? c. How does this result change if the government does not apply the tax and the company decides to aim for the competitive outcome, given the potential entry of competitors in the industry?Asap PLEASE ANSWER ALL FAST AND ACCURATELY. I WILL GIVE THUMBS UP/UPVOTE If the elasticity of demand is Ed = 1.5 and the elasticity of supply is Es = 2.5 then, Calculate the pass-through fraction of the tax that is paid by the buyers in the market. Show all formulas that you use. Graphically depict a perfectly competitive firm earning economic losses. Be sure to label all of your curves