At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm's supply is 1.25. What quantity will the firm supply at the new price?
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The market price of a good changes from Rs 5 to Rs 20. As a result, the quantity supplied by a firm increases by 15 units. The price elasticity of the firm's supply curve is 0.5. Find the initial and final output levels of the firm.
A firm earns a revenue of Rs 50 when the market price of a good is Rs 10. The market price increase to Rs 15 and the firm now earns a revenue of Rs 150. What is the price elasticity of the firm's supply curve?
There are three identical firms in a market. The following table shows the supply schedule of firm 1. Calculate the market supply schedule.
Price (Rs )
SS1 (units)
0
1
2
3
4
6
5
8
10
7
12
14
Consider a market with two firms. In the following table, columns labelled as SS1 and SS2 give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.
SS1 (kg)
SS2 (kg)
0.5
1.5
2.5
Consider a market with two firms. The following table shows supply schedules of two firms: SS1 denotes the supply schedule of firm 1 and SS2 denotes the supply schedule of firm 2. Calculate the market supply schedule.
SS2 (units)
The following table shows the total cost schedule of a competitive firm. It is given that the price of the good is Rs 10. Calculate the profit at each output level. Find the profit maximising the level of output.
Quantity Sold
TC (Rs )
15
22
27
31
38
49
63
81
9
101
123
The following table shows the total revenue and total cost schedules of a competitive firm. Calculate the profit at each output level. Determine also the market price of the good.
TR (Rs )
Profit
20
25
23
30
33
35
40
Calculate the total revenue, marginal revenue and average revenue schedules in the following table. Market price of each unit of the good is Rs 10.
TR
MR
AR
What does the price elasticity of supply mean? How do we measure it?
How does an increase in the number of firms in a market affect the market supply curve?
How does an increase in the price of an input affect the supply curve of a firm?
How does the imposition of a unit tax affect the supply curve of a firm?
How does technological progress affect the supply curve of a firm?
What is the supply curve of a firm in the long run?
What is the supply curve of a firm in the short run?
Will a profit-maximising firm in a competitive market produce a positive level of output in the long run if the market price is less than the minimum of AC? Give an explanation.
Will a profit-maximising firm in a competitive market produce a positive level of output in the short run if the market price is less than the minimum of AVC?
Will a profit-maximising firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
Can there be a positive level of output that a profit-maximising firm produces in a competitive market at which market price is not equal to marginal cost? Give an explanation
What conditions must hold if a profit-maximizing firm produces positive output in a competitive market?
What is the relation between market price and marginal revenue of a price-taking firm?
What is the relation between market price and average revenue of a price taking firm?
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin?
What is the price line?
How are the total revenue of a firm, market price, and the quantity sold by that firm related to each other?
What are the characteristics of a perfectly competitive market?