Q1. A pure competitive star industry consists of a large number of independent firms producing a standardized product A. For every company operating in this market total cost function is as following
TC=48-2Q+0.25Q^2
A. determines the average cost function?
B. Define the profit function for the company that is at an equilibrium position if we know,that the price will be at the level of marginal cost for this pure competitive market?
Q2 the multi star company manufactures a product that has a selling price $11 per unit and a unit cost of $9.50. In case the fixed cost of this production are $50,000,determine the number of the units that must be sold by the company to make a profit of $10,000 USD?
Q3.define basic features of a purely competitive market for a pure competitive industry indo A that consists of the large number of independent firms producing a standardized product. How different would be this set of main features if the company operates monopolistically market? How do you determine the profit in the short run and in the long run for each case?
Q4. Analyze the total revenue-total cost approach to a profit maximization problem. Make a conclusion for the level of the profit in the long run. Illustrate the main condition of profit maximization graphically?
Q5. Assume that the demand and supply curves for swimming suits are described by the following equations
Qd=120-2P
Qs=60+p
Where P is the price in dollars and Q is the quantity in units
Compute the competitive equilibrium price and the quantity. Draw a graph of supply and demand curve. Compute the total value created in the market for swimming suits, if total value in this market is equal to total surplus (consumer surplus + producer surplus)?