Question
In: Economics
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All...
- Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All the firms in the industry sell their products at 20 AED. The market demand for this product is given by the equation: (Total marks = 5)
Q = 25 – 0.25P
Furthermore, suppose that a representative firm’s total cost is given by the equation:
TC = 50 +4Q + 2Q2
- What is the inverse demand function for this market?
- Calculate the MC function?
- Calculate the MR function?
- Calculate the profit maximizing level of output for the firm?
- Calculate the size of the profit? Show it graphically
- Is this industry SR or LR?
Solutions
Rahul Sunny answered 9 months agoRelated Solutions
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost...
Suppose there is a perfectly competitive industry where all the
firms are identical with identical cost curves.
Furthermore, suppose that a representative firm’s total cost is
given by the equation TC = 120 + q2 + 2q where q is the
quantity of output produced by the firm.
You also know that the market demand for this product is given
by the equation P = 1200 – 2Q where Q is the market quantity. In
addition you are told that...
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost...
Suppose there is a perfectly competitive industry where all the
firms are identical with identical cost curves.
Furthermore, suppose that a representative firm’s total revenue
is given by the equation TR = q.p; where q is the quantity of
output produced by the firm and p the market price (=P).
The market demand for this product is given by the equation P =
5000 – 9Q where Q is the market quantity.
In addition you are told that the market...
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost...
Suppose there is a perfectly competitive industry where all the
firms are identical with identical cost curves.
Furthermore, suppose that a representative firm’s total revenue
is given by the equation TR = q.p; where q is the quantity of
output produced by the firm and p the market price (=P).
The market demand for this product is given by the equation P =
5000 – 9Q where Q is the market quantity.
In addition you are told that the market...
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost...
Suppose there is a perfectly competitive industry where all the
firms are identical with identical cost curves. Furthermore,
suppose that a representative firm’s total cost is given by the
equation. TC = 100 + q^2 + q where q is the quantity of output
produced by the firm. You also know that the market demand for this
product is given by the equation P = 1000 - 2Q where Q is the
market quantity. In addition, you are told that...
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost...
Suppose there is a perfectly competitive industry where all the
firms are identical with
identical cost curves. Furthermore, suppose that a
representative firm’s total cost is given by the equation
where is the quantity of output produced by the firm. You also
know that the TC=200 +q^2+q where q is the quantity of output
produced by the firm. You also know that the market demand for this
product given by the equation P= 1000-2Q where Q is the market
quantity....
Suppose corn producers are in a perfectly competitive industry where all the firms are identicj with...
Suppose corn producers are in a perfectly competitive industry
where all the firms are identicj with identical cost curves. In
this industry the market price for a bushel of corn is $400.
Suppose that a representative firm’s total cost is given by the
equation TC=500 + q2 + 200q where q is the quantity of output
produced by an individual firm. The firms MC curve equation based
upon its TC curve equation is MC =2q + 200. Given this information...
The industry for hockey pucks is perfectly competitive. All firms are identical with a coststructure that...
The industry for hockey pucks is perfectly competitive. All
firms are identical with a coststructure that is independent of the
number of firms in the industry. Each firm has a long-run average
cost curve that has its minimum of $2.00 at a quantity of 2500
pucks. The demand for pucks is given by Q = 1,400,000 - 400,000P.
a) Find long-run equilibrium price and output in the hockey puck
market. b) What is the long-run equilibrium production of each
firm?...
Suppose that the wheat market in Ghana is a perfectly competitive one where all the firms...
Suppose that the wheat market in Ghana is a perfectly
competitive one where all the firms are identical with identical
cost curves. Again, suppose that a single firm’s total cost (TC)
function is given as TC = 100 + q2 + q where q is the quantity of
output produced by the firm. Furthermore, the market demand
function for this product is given by the equation Q = 500 – 0.5P,
where Q is the market quantity demanded. Also, the...
compared with firms in a perfectly competitive industry, firms in a monopolistically competitive industry are inefficient...
compared with firms in a perfectly competitive industry, firms
in a monopolistically competitive industry are inefficient because
thery
a. do not lower the product price if put prices fall
b. waste resources by producing an excess amount of output
c. restrict their output levels to maximiz profirs
d make economic profits in the long run.
which of the following statement is true about a firm in a
perfectly competitive market
a. the demand for its product is a downward sloping...
Suppose that the perfectly competitive market for coffee beans is made up of identical firms with...
Suppose that the perfectly competitive market for coffee beans
is made up of identical firms with long-run total cost functions
given by T C = 2Q 3 − 24Q 2 + 80Q , where Q is 100,000 pounds of
coffee beans. Assume that these cost functions are independent of
the number of firms in the market and that firms may enter or exit
the market freely. Market demand is Q = 100, 000 − 400P
(a) Find the long-run equilibrium...
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