Question
In: Economics
Suppose the wheat growing industry in the US is perfectly competitive and there is free entry...
Suppose the wheat growing industry in the US is perfectly competitive and there is free entry in the long run. the market demand function is Qd= 580 -4p, which is measured in tons per month. each producer in the industry has a fixed cost of $400 and a variable cost function given by VC=q^2 +5q, where q is the output of an individual producer.
a)calculate the long run market equilibrium price and quantity. How many firms are there in the economy?
Suppose the marginal cost increases by 2$ from the long run equilibrium. At the same time the market demand decreases by 34. Answer the following:
b) calculate the new short run market equilibrium price and quantity
c) what is the profit of each individual firm in the short run?
d) Draw a graph to show the short run and long run response of the economy. Mark the short run and long run equilibrium price and quantity on the graph.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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Suppose the wheat market is perfectly competitive. As such which
of the following would be true? A. The market will maximize welfare
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minimize producer surplus. D. All of the other answers are
incorrect E. The market will minimize total cost.
Consider whether the US farming industry is perfectly competitive. Go to the US Department of Agriculture's...
Consider whether the US farming industry is perfectly
competitive. Go to the US Department of Agriculture's Economic
Research Service website, click "Farm Income," and consider the
information in the articles on family farms. Does farming in the US
have the characteristics of perfect competition?
Please Type Answer do not hand write . Thank you.
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Chapter 10 Pure Competition Is farming perfectly competitive? Consider whether the US farming industry is perfectly...
Chapter 10 Pure Competition
Is farming perfectly competitive? Consider
whether the US farming industry is perfectly competitive. Go to the
US Department of Agriculture's Economic Research Service website
(http://www.ers.usda.gov/Emphases/Competitive/
(Links to an external site.)), consider the information in the
articles on family farms. Does farming in the US have the
characteristics of perfect competition? Discuss and use examples to
support your argument.
Suppose that a perfectly competitive industry is in long-run equilibrium. Then the price of a complementary...
Suppose that a perfectly competitive industry is in long-run
equilibrium. Then the price of a complementary good decreases. Use
two graphs, one for the firm, and one for the industry (and words)
to explain what will happen in the short run, and then the long
run, to: a. The market demand curve? b. The market supply curve? c.
Market price? d. Market output? e. Representative firm output? f.
Representative firm profit?
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Suppose that the flu vaccination industry is perfectly
competitive and that Healthy Times Inc. is a representative firm
who is just one of many flu vaccination producers in the industry.
For all calculation questions, please include the number only in
your submitted solutions (don’t use any dollar signs, symbols,
commas, decimal points, or letters). The current market price for a
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TC = q2 + 180q +...
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 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 =
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In addition you are told that the market...
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