Business, 21.09.2020 01:01 johnsonraiah5320

Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs:

Total Cost: TC=50+12q2TC=50+12q2
Marginal Cost: MC=qMC=q
where qq is an individual firm's quantity produced.

The market demand curve for this product is:

Demand QD=140?2PQD=140?2P
where PP is the price and QQ is the total quantity of the good.

Each firm's fixed cost is.

What is each firm's variable cost?

12q212q2

qq

50+12q50+12q

12q12q

Which of the following represents the equation for each firm's average total cost?

50q50q

50+12q50+12q

50q+12q50q+12q

12q12q

Complete the following table by computing the marginal cost and average total cost for qq from 5 to 15.

q Marginal Cost Average Total Cost
(Units) (Dollars) (Dollars)
5 12.50
6 11.33
7 10.64
8 10.25
9 10.06
10 10.00
11 10.05
12 10.17
13 10.35
14 10.57
15 10.83
The average total cost is at its minimum when the quantity each firm produces (qq) equals .

Which of the following represents the equation for each firm's supply curve in the short run?

50?q50?q

12q212q2

qq

120?12q2120?12q2

In the long run, the firm will remain in the market and produce if .

Currently, there are 8 firms in the market.

In the short run, in which the number of firms is fixed, the equilibrium price isand the total quantity produced in the market isunits. Each firm producesunits. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.)

In this equilibrium, each firm makes a profit of. (Note: Enter a negative number if the firm is incurring a loss.)

Firms have an incentive to the market.

In the long run, with free entry and exit, the equilibrium price isand the total quantity produced in the market isunits. There arefirms in the market, with each firm producingunits.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:40

Uppose stanley's office supply purchases 50,000 boxes of pens every year. ordering costs are $100 per order and carrying costs are $0.40 per box. moreover, management has determined that the eoq is 5,000 boxes. the vendor now offers a quantity discount of $0.20 per box if the company buys pens in order sizes of 10,000 boxes. determine the before-tax benefit or loss of accepting the quantity discount. (assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)

Answers: 1

Answer

Business, 21.06.2019 20:20

If the demand for a pair of shoes is given by 2p + 5q = 200 and the supply function for it is p − 2q = 10, compare the quantity demanded and the quantity supplied when the price is $90. quantity demanded pairs of shoes quantity supplied pairs of shoes will there be a surplus or shortfall at this price? there will be a surplus. there will be a shortfall.

Answers: 3

Answer

Business, 22.06.2019 03:00

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Answers: 2

Answer

Business, 22.06.2019 03:30

He aldermanalderman company has prepared a sales budget of 42 comma 00042,000 finished units for a 3-month period. the company has an inventory of 10 comma 00010,000 units of finished goods on hand at december 31 and has a target finished goods inventory of 11 comma 00011,000 units at the end of the succeeding quarter. it takes 44 gallons of direct materials to make one unit of finished product. the company has inventory of 64 comma 00064,000 gallons of direct materials at december 31 and has a target ending inventory of 53 comma 00053,000 gallons at the end of the succeeding quarter. how many gallons of direct materials should aldermanalderman company purchase during the 3 months ending march 31? select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.

Answers: 3

Answer

You know the right answer?

Problems and Applications Q11 Suppose that each firm in a competitive industry has the following co...

Questions