Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. Your...
Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. Your total cost of production in the short-run is given by ???? = 72 + 5? + 0.5? 2 (Note: The answer to this question must be hand-written.)
a) Find the equation for the marginal cost function.
b) If the market price is $100. How many watches should you produce to maximize profits?
c) What will be your profit at a price of $100?
d) In the short-run, how low can the market price go before you decide to shut down? In other words, what is the shut-down price?
e) Find the equation of a typical watchmaking firm’s short-run supply function.
f) Is $100 a long-run equilibrium price? Explain your reasoning.
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Suppose you are the manager of a watchmaking firm operating in a
perfectly competitive market. Your...
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost...
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100+ 0 + 2q? where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $100). If the price of a watch is $80, how many watches should you produce to maximize profits? You should produce watches. (Enter your response as an integer.)
6. Suppose you are the manager of a watchmaking firm operating in a competitive market. Your...
6. Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C-200+2q" a. If the price of watches is $100, how many watches should you produce to maximize profit? b. What will the profit level be? c. At what minimum price will the firm produce a positive output?
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You are a manager in a perfectly competitive market. The price in your market is $35....
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is C(Q) = 10 + 2Q + .5Q2 and MC = 2 + Q. a. What level of output should you produce in the short run? b. What price should you charge in the short run? c. Will you make any profits in the short run? d. What will happen in the long run?
Suppose you are analyzing a firm operating in a perfectly competitive market. You know the market...
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You are a manager in a perfectly competitive market. The price in your market is $30....
You are a manager in a perfectly competitive market. The price in your market is $30. Your total cost curve is C(Q) = 10 + 2Q + .5Q2. a. What level of output should you produce in the short run? b. What price should you charge in the short run? c. Will you make any profits in the short run? d. What will happen in the long run? e. How would your answer change if your costs were C(Q) =...
A firm operates in a perfectly competitive market with a price of P = 50 for...
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Introduction to Microeconomics Deriving the Short-Run Supply Curve for the Perfectly Competitive Firm MC ATC AVC...
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hapter 9 9.1 You are a manager in a perfectly competitive market. The price in your market is $35. Your tota is C(Q)-10+2Q+0.5Q. Marginal cost is 2+Q. (8 points) a. Find the profit-maximizing output in the short.nun. b. What price should you charge in the short-run? c. Will you make any profits in the short-run? If so, find your profit. If not, please explain why yo firm does not make any profits. What will happen in the long run2 d....
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 100+ 0 + 2q? where q is the level of output and C is total cost. (The marginal cost of production, MC(q), is 4q; the fixed cost, FC, is $100). If the price of a watch is $80, how many watches should you produce to maximize profits? You should produce watches. (Enter your response as an integer.)
6. Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C-200+2q" a. If the price of watches is $100, how many watches should you produce to maximize profit? b. What will the profit level be? c. At what minimum price will the firm produce a positive output?
Introduction to Microeconomics Deriving the Short-Run Supply Curve for the Perfectly Competitive Firm MC ATC AVC Cost ($) 0 10 20 30 40 50 60 70 80 90 100 110 Outputs units) The figure illustrates the costs faced by a perfectly competitive firm. Use the figure to answer the following: 1) If the market price is $20, how much will the firm produce in order to maximize its profits? 2) If the market price is $15, how much will the...
hapter 9 9.1 You are a manager in a perfectly competitive market. The price in your market is $35. Your tota is C(Q)-10+2Q+0.5Q. Marginal cost is 2+Q. (8 points) a. Find the profit-maximizing output in the short.nun. b. What price should you charge in the short-run? c. Will you make any profits in the short-run? If so, find your profit. If not, please explain why yo firm does not make any profits. What will happen in the long run2 d....
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