The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?=6?+10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Find the short run supply curve for these firms. b) Find the market supply curve for sweet potatoes.
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The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?=6?+10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows.
a) Find the short run supply curve for these firms.
b) Find the market supply curve for sweet potatoes.
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- The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?= 6? + 10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Do these firms have any fixed costs? Explain. b) Find each firm’s short run AVC and short run MC. c) What is the shutdown point for these firms? In other words, at what price will the firms choose not to produce?The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including number of firms, is possible. We have identical firms, each with a Total Cost curve of TC=862+q^2 and Marginal Cost curve MC=2q. Market demand is Q=856-2P. What is the number of firms in the market in the long run equilibrium?Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short- 9.3. run total cost curve of the form: 1 STC =9 + 0.2q² + 4q + 10 300 and marginal cost is given by SMC = .01q² + .4q+ 4 a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P). b. Calculate the industry supply curve for the 100 firms in this industry. c. Suppose Q = -200P + 8,000. What will be the shortrun equilibrium price-quantity combination? d. Suppose everyone starts writing more research papers and the new market demand is given by Q = -200P + 11,200. What is the new short-run price-quantity equilibrium? How much profit does each firm make? market demand is given by
- Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm Fixed Cost? Why? Also, use a graph to support your answerGlowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in the market. Each firm's Total Cost function is TC=396+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=484-P. What is the profit earned by each firm in the short-run?
- Consider a firm in a Perfectly Competitive industry. Suppose the price in this industry is $26. The total cost (TC) function for each firm is TC = 0.05q^2 + 1,080. If the marginal cost (MC) function for the firm is MC = 0.1q, a)what is the profit maximizing quantity for the firm to produce? b)what is the profit for the firm at the profit maximizing point?Homework (Ch 14) 5. Profit maximization and shutting down in the short run Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 100 90 80 ATC 60 50 40 30 AVC 20 MC 10 20 25 30 35 40 45 50 10 15 QUANTITY (Thousands of ovens) PRICE (Dollars per oven)Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (? 50 45 40 35 30 ATC 25 20 15 AVC 10 MC 8 10 2 4 12 14 16 18 20 QUANTITY (Thousands of sweaters) PRICE (Dollars per sweater)
- 50 45 40 35 30 ATC 25 20 15 AVC 10 MC 2 4 8 10 12 14 16 18 20 QUANTITY (Thousands of shirts) PRICE (Dollars per shirt)Economics QuestionSuppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 1/2q2 Marginal cost: MC = q Where q is an individual firm’s quantity produced. The market demand curve for the product is: Demand: QD = 120 – P Where P is the price and Q is the total quantity of the good. Currently there are 9 firms in the market. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost. Graph the average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is the average-total-cost curve at its minimum? What is the marginal cost and average total cost at that quantity? Give the equation for each firm’s supply curve. Give the equation for the market supply curve for the short run in which the number of firms is fixed. What is the equilibrium price and quantity for the market in the short run? In this equilibrium, how much does each firm produce? Calculate the firm’s profit and loss. Do firms have…
