The price of a good is $50. The market for this good is perfectly competitive. The marginal cost that afirm producing these good faces is MC = 4 + 0.5Q, where Q is the quantity of good produced. Howmany units of the good does this firm produce? Show your mathematical work
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firm producing these good faces is MC = 4 + 0.5Q, where Q is the quantity of good produced. How
many units of the good does this firm produce? Show your mathematical work
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- 0 Price (per unit) $200 A MC ATC C Lin B D Quantity (units per week) Market Price P = MR Figure 23.5 Catawissa Catfish of Catawissa, PA is a catfish farm that sells its fish in a perfectly competitive market, it is the average firm in this market, and the above graph shows its revenue and cost curves. If the market price is $200 per bushel of catfish, which of the following is not true for Catawissa Catfish?Suppose that the market for air fresheners is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 40 36 Profit or Loss 32 28 ATC AVC MC 4 2 4 6 10 12 14 16 18 20 QUANTITY (Thousands of air fresheners per day) In the short run, at a market price of $20 per air freshener, this firm will choose to produce v air fresheners per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's v would be $ thousand per day in the short run. PRICE (Dollars per air freshener)Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $28 per box. Farmer Brown's marginal cost of production is illustrated in the table. Market Price (per box) $28 Вохes of Marginal Cost (MC) Peaches 28 8.00 2 28 4.00 3 28 12.00 4 28 24.00 5 28 48.00 28 72.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producingO boxes of peaches. (Enter your response as an integer.)
- For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per air freshener) (Air fresheners) (Dollars) (Dollars) (Dollars) (Dollars) 10.00 44,000 16.00 44,000 40.00 44,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the…The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27The 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.
- Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 40 36 Profit or Loss 32 28 24 20 ATC 16 12 AVC MC 4 8 2 4 6 QUANTITY (Thousands of candles per day) 10 12 14 16 18 20 In the short run, at a market price of $20 per candle, this firm will choose to produce candles per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be S thousand per day in the short run. PRICE (Dollars per candle)The market for Ramen noodle bowls is perfectly competitive. Market demand is given by P=55-4Q. If the price for a bowl of noodles is $21 how many units are demanded in the market? Enter a number only. Remember, fractions of goods are possible.The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 25 2.20 30 2.02 2.17 35 2.45 2.21 40 3.57 2.38 45 4.00 2.56 50 5.46 2.85 55 5.93 3.13 60 8.53 3.58 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds?
- Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $22 per box. Farmer Brown's marginal cost of production is illustrated in the table. Boxes of Market Price Marginal Cost (MC) (per box) $22 Peaches 1 22 6.00 2 22 3.00 3 22 9.00 22 18.00 5 22 36.00 54.00 22 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $22 per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producing 4 boxes of peaches. (Enter your response as an integer.)Farmer Smith grows apples. The average total cost and marginal cost of growing apples for an individual farmer are illustrated in the graph to the right. Suppose the market for apples is perfectly competitive. If the box, then to maximize profits, farmer Smith should produce apples. (Enter a numeric response using an integer.) market price is $32 per thousand boxes of Price and cost (dollars per box) 40 MC 36- Q AIC Price C 32 28 24 20 16 17 12- &- 4- 0 10 20 30 40 50 60 70 80 Quantity of apples (boxes per month in 1000s) 90 100Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound. Is the farmer maximizing profit? If not, should the farmer produce more or less sugar?
