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1. Total costs function of competitive firm is ТС = 6Q + 2Q2. Find the result of entrepreneur activity if firm produces 25 units and sells them on 36 doll. per unit.
2. There are 500 firms in pure competition industry. Marginal costs of each firm depend on final output: if the case if output is 100 units per month – marginal costs are 25 doll., if output is 200 units – marginal costs are 30 doll., if output is 300 units – marginal costs are 35 doll., if output is 400 units – marginal costs are 40 doll. Find the total output of industry in the case if market price of production is 35 dollars.
3. Total costs function of monopoly is: ТС = 100 + 3Q, where Q - output (units) in a month; demand function on monopoly products is: Р = 200 - Q, where Р – price of production (doll.). Total output of monopoly is 19 units in a month. How will profit of monopoly change if firm increase its output to 20 units.
4. Firm produces 10 th. units in a year. Marginal costs of the firm are 175 doll., average costs are 215 doll. Find profit of the firm in the case if one unit price is 250 doll. and marginal revenue is 185 doll. Explain if this profit is highest?
5. Free competitive firm produces 10 th. phones in a year. Average variable costs are 120 doll., total fixed costs are 700 th. doll. Find the profit of the firm if market price of one phone is 245 doll.
6. Imagine that monopolist can sell 150 units on price 50 doll. per unit, but if he decide to sell 151 units the price will decrease till 45 doll. Find marginal revenue of monopolist in the case of output increase from 150 till 151 units.
7. Monopolist can sell 20 units on price 100 doll. per unit, but selling of 21 units will decrease the price till 99,5 doll. per unit. Find marginal revenue of monopolist in the case of output increase from 20 till 21 units.
8. Free competitive firm plans to publish text-book on Economics. Average costs per one book are 2 doll.+2000doll./Q, where Q – quantity of text-books published during a year. Approximate price of the book is 4 doll. Firm plans to receive normal profit. Find annual output of text-books in such conditions.
9. Total output of monopolist is 300 units in month. Average variable costs are 400 doll., average fixed costs are 100 doll. Demand function on monopoly goods is Р = 1000 – Q, where P – is the price of one unit, Q – quantity of units. Find profit of monopolist. Is this the highest profit?
10. Find average fixed, average variable, average total costs and profit of firm according such data (per year):
· Expenditures on raw materials – 150 th. doll.
· Expenditures on lighting – 10 th. doll.
· Transport expenditures – 20 th. doll.
· Wages of directors board – 70 th. doll.
· Wages of piece-workers 200 th. doll.
· Value of equipment – 3 bil. doll.
· Term of equipment exploitation is 10 years.
· Rent payments – 10 th. doll.
· Total output – 2.5 th. units.
· Market price of one unit – 500 doll.
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