3. Consider a market for a good with the following demand function: Q = 120-2p where Qis quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pe) of the good and total output, (Qc).

3. Consider a market for a good with the following demand function: Q = 120-2p where Qis quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pe) of the good and total output, (Qc).

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.2: Supply

Problem 2ST

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3. Consider a market for a good with the following demand function: Q = 120-2p where is quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc).
A7 You are the manager of a bakery that produces and packages gourmet muffins, and you currently sell muffins in packages of 3. A consultant’s report has estimated the (inverse) demand of a typical consumer to: P = 3 − 0.5Q If your cost of producing bran muffins is C(Q) = Q: (a) What is the marginal cost of muffins? (b) Draw the demand and marginal cost on a diagram. (c) Determine the optimal number of muffins to sell in a single package. (d) What price should the firm charge for each park?
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. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 50 45 Profit or Loss 40 35 ATC 20 15 AVC 10 MC 4 10 12 14 16 18 20 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $15 per sweater, this firm will choose to produce Sweaters 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 $15 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's v would be$ thousand per day in the short run. PRICE(Dollars per sweater)
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)
For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. If managers set a price of $750, how many engines will Dolan sell per month? a.30 b.35 c. 20 d.25
4. The demand equation for a product is p = a – bq and the cost function is C(q) = kq² – rq where p is the price of the product, q is the quantity sold and a, b, k and r are positive constants. Find the equilibrium quantity in terms of a, b, k and r.
GIVEN INFORMATION: Think about Anteaterville's highly competitive smoothie market. Q is the quantity (measured in the number of smoothies) and p is the price, and the supply of smoothies is given by Q = 200p and the demand for smoothies is given by Q = 1200p - 100p (measured in dollars). The equilibrium quantity in this market is 800 smoothies. The equilibrium price in this market is $ 4 per smoothie. (Please enter only numbers in the boxes, and round to the nearest whole number if necessary.) PLEASE SOLVE: Remember the perfectly competitive smoothie market from the previous question? At the competitive equilibrium you derived in previous question (and assuming there are no market failures in the smoothie market), the producer surplus in the smoothie market is $______ , the consumer surplus is $______ , the total surplus is $______ , and the deadweight loss is $________ . (Please enter only numbers in the boxes, and round to the nearest whole number if necessary.)
The figure represents a supply function with a fixed market price denoted by its corresponding point on the supply graph. Calculate the values of and write sentences of interpretation for each of the following. q million pots 50 40 30 20 14 10 2 (2,14) (a) Producer revenue $ million (10, 30) 5 10 15 The total amount received from supplying p dollars. per pot 20 (b) Producer surplus $ million The difference between the revenue from supplying (c) Producer willingness and ability to receive $ million The minimum amount of money needed to supply million pots at a market price of $ million pots and the amount that must be received to supply million pots is $ per pot, is $ million. million. million pots is $ million.
Suppose that the market for dress shirts 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. 50 45 Profit or Loss 40 35 30 ATC 25 20 15 AVC 10 MC 4 10 12 14 16 18 20 QUANTITY (Thousands of shirts per day) In the short run, at a market price of $15 per shirt, this firm will choose to produce shirts 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 $15 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 $ thousand per day in the short run. PRICE (Dollars per shirt)
The market for paperback detective novels is perfectly competitive. Suppose we have identical book readers, and each individual book reader's demand for paperback novels is given by P=130-7Q. We have 160 book readers in the market. What is the market quantity demanded when the price of a paperback novel is $21. Enter a number only. Remember, fractions of goods are possible.
Suppose she runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear.
At a price of x dollars, the supply function for a music player is q = 75e0.002, where q is in thousands of units. How many music players will be supplied at a price of 300? (Round to the nearest thousand.) thousand units Find the marginal supply Marginal supply(x) = Which is the best interpretation of the derivative? O The rate of change of the price as the quantity supplied increases The quantity supplied if the price increases O The rate of change of the quantity supplied as the price increases O The price at a given supply of units O The number of units that will be demanded at a given price