Question
In: Economics
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? How many of them are there in the long run? What are the profits of each firm? c) Suppose that the expansion of the NHL into the sunbelt increases the demand for hockey pucks by 200,000 at every price. Derive the new long-run equilibrium price, market quantity, quantity supplied by each firm, number of firms, and profits per firm.
Solutions
Rahul Sunny answered 2 years 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 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...
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...
Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given by...
Let a perfectly competitive industry have 100 identical firms
with a marginal cost curve given by MC = Q/2.
a. Construct the short run industry supply curve with 100
firms.
b. Let the market demand curve be Q = 4000 – 200*P. Find the
short run equilibrium price, industry quantity, and firm
quantity.
c. This is a constant cost industry with a cost of $8. Will
firms be making profits or losses in the short run equilibrium in
b?
d....
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...
You are given the following information about the current conditions of a particular perfectly competitive industry with identical firms:
You are given the following information about the current
conditions of a particular perfectly competitive industry with
identical firms:Market demand: QD = 1, 410 − 40PMarket supply: QS = 30P − 60Firm total cost function: T C(q) = 50 + 2q + 2q2(a) (5 points) What is the current equilibrium price and
quantity in the market?(b) (10 points) What is the supply curve of each firm (This
should be a function of price: qS = f(P))? What is the amount...
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