Suppose that you are the manager of watch making firm operating in acompetitive market your cost of production is given by C = 100 +Q2 , whereQ is the level of output and C is total cost. The marginal cost ofproduction is 2Q .The fixed cost of production is $100. If the price ofwatches is $ 60, how many watches should you produce to maximizeprofit?

Suppose that you are the manager of watch making firm operating in acompetitive market your cost of production is given by C = 100 +Q2 , whereQ is the level of output and C is total cost. The marginal cost ofproduction is 2Q .The fixed cost of production is $100. If the price ofwatches is $ 60, how many watches should you produce to maximizeprofit?Question No. 2 Marks : 02The kink in the kinked demand curve arises because:o there is a sharp, abrupt change in the price elasticity of demando entry into the industry is relatively easyo monopoly profits are being made by some firms but not byotherso the products sold by each firm are differentQuestion No. 3 Marks : 10Can perfectly competitive firms earn economic profit? Explain.Question No. 4 Marks : 02When an industry is classified as oligopolistic, it consists of:o only one selleroo only a few sellers with either standardized or differentiatedproductsmany sellers with similar productso only a few buyersQuestion No. 5 Marks : 10Suppose that the market demand function of a perfectly competitiveindustry is given by QD = 4,750 – 50P and the market supply function isgiven by QS = 1,750 +50P, and P is expressed in dollars. Find the marketequilibrium price.Question No. 6 Marks : 02In the short run, the supply curve for a perfectly competitive industry:oo is the sum of all individual firms' average total cost curvesshifts to the right if new firms enter the industryoo does not change if firms leave the industryis horizontalQuestion No. 7 Marks : 10Do you agree or disagree with each of the following statement. Explainyour reasons.(a) Average fixed cost does not change as the output change.(b) Firms will never sells its product for less than it costs to produceit.Question No. 8 Marks : 02When the monopolistic producer practices price discrimination:o different prices are used to ration different goods amongdifferent consumerso different groups of consumers are charged different prices forthe same goodo social welfare is improvedo all consumers are charged different prices for different goodsQuestion No. 9 Marks : 10A sales tax of $1 per unit of output is placed on one firm whose productsells for $5 in a competitive industry.(a) How will this tax affect the cost curves for the firm?(b)Will there be entry or exit?Question No. 10 Marks : 02The monopolistic producer:o is not concerned with the cost of production since higher costcan be passed on to consumerso tries to maximize total revenueo usually produces in the inelastic range of the demand curveo tries to minimize the cost of producing a given level of output

Refer to Scenario 15.1. A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10.  It faces demand Q = 130- P (so its marginal revenue is MR = 130 - 2Q).  Its profit-maximizing output and profit are respectivelyGroup of answer choicesQ=30 and $1,700Q=25 and $ 2,500Q=20 and $450Q=10 and $1,300

Barbara has estimated the demand and marginal revenue for her product.They are P = 84 - 2Q (quantity) and MR = 84 - 4Q, respectively.She also experiences a constant marginal cost of $16.What is Barbara’s profit-maximising quantity and price?Question 4Answera.Q = 12; P = $50b.Q = 12; P = $40c.Q = 17; P = $50d.Q = 17; P = $40

Refer to Scenario 15.5. Suppose there are 100 firms each with a short run total cost of TC = q2 + q + 4, so that marginal cost is MC = 2q +1. If market demand is given by QD = 1050 − 50P, how much will be produced in the market ( Call this Q)?  and what profit will each firm make?Group of answer choicesQ=300, Profit = $25Q=400, Profit = $15Q=500, Profit = $21Q=600, Profit = $50

Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. If market demand is given by QD = 1050 - 50P, profit to the firm will beQuestion 3Select one:a.5.b.6.c.15.d.9.Clear my choice◀︎ 208ps4solnJump to...