What KIND of firm is firm A ? If the price is $150, firm A should produce Q\" to
ID: 1215325 • Letter: W
Question
What KIND of firm is firm A ? If the price is $150, firm A should produce Q" to maximize profits. Ilf firm A produces (he output in question (W) they will earn profits equal to: S Is firm A likely to be able to continue making these profits in the IX)NG RUN ? What is the maximum technical efficiency output level for firm (A) ? Q = At which output level does firm (A) have the lowest average fixed cost ? Q = What KIND of firm is firm (B) ? What is the profit maximizing output level for firm (B) ? Q = What price should firm (B) charge to sell the profit maximizing output ? How much profit can firm (B) make if they sell the Q from question (M) at the Price from questionExplanation / Answer
20. What kind of firm is firm A?
A perfectly competitive firm.
21. If the price is $150, firm A should produce 150 units (Q) to maximize profit.
22. If firm A produces the quantity in question (21), they will earn profits equal to $1,500.
23. Is firm A likely to be able to continue making these profits in the LONG-RUN?
No. Firm A will have zero economic profits at its long-run equilibrium.
24. What is the maximum technical efficiency output level for firm (A)?
Output Q = 100 units.
25. At which output level does firm (A) have the lowest average fixed cost?
Q = 100 units.
26. What kind of firm is firm B?
A monopolistic competitive firm.
27. What is the profit-maximizing output level for firm (B)?
Q = 50 units.
28. What price should firm (B) charge to sell the profit-maximizing output?
Price = $12.
29. How much profit can firm (B) make if they sell the Q from question (27) at the price from question (28)?
Profit: $250.
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