Question
In: Economics
. Suppose that each firm in a competitive industry has the following costs: TC = 100...
. Suppose that each firm in a competitive industry has the following costs: TC = 100 + ???? 2 MC = 2???? Where ???? is an individual firm’s quantity produced. The market demand curve for this product is ????=100-P Currently, there are 10 firms in the market.
A. At what quantity is ATC curve at its minimum?
B. Give the equation for each firm’s supply curve for the short-run and for the long-run.
C. Give the equation for the market supply for the short-run (when there are 10 firms in the market).
D. What is the equilibrium price and quantity for this market in the short-run? (round up to the second decimal point)
E. In this equilibrium, is there incentive for firms to enter or exit?
F. In the long-run with free entry and exit, what is equilibrium price and quantity in this market?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC=50+12q2TC=50+12q2 Marginal...
Suppose that each firm in a competitive industry has the
following costs:
Total Cost:
TC=50+12q2TC=50+12q2
Marginal Cost:
MC=qMC=q
where qq is an individual firm's quantity produced.
The market demand curve for this product is:
Demand
QD=160−4PQD=160−4P
where PP is the price and QQ is the total quantity of the
good.
Each firm's fixed cost is $50.
What is each firm's variable cost?
A: 1/2q^2
Which of the following represents the equation for each firm's
average total cost?
A: 50/q +...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC=50+12q2TC=50+12q2 Marginal...
Suppose that each firm in a competitive industry has the
following costs:
Total Cost:
TC=50+12q2TC=50+12q2
Marginal Cost:
MC=qMC=q
where q is an individual firm's quantity produced.
The market demand curve for this product is:
Demand
QD=140−2PQD=140−2P
where P is the price and Q is the total quantity of the
good.
Each firm's fixed cost is ($ )
What is each firm's variable cost?
A) 50+1/2q
B) q
C) 1/2q
D) 1/2q ^2
Which of the following represents the equation for...
Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U- shaped,...
Suppose there are 100 firms in a perfectly competitive industry.
Each firm has a U- shaped, long-run average cost curve that reaches
a minimum of $10 at an output level of 8 units. Marginal costs are
given by MC(q) = q + 2 and market demand is given by Q= 1000 -
20P
a. Find the long-run equilibrium in this market and determine
the consumer and producer surplus (in this case,
the areas of the triangles).
b. Suppose instead there...
In a perfectly competitive industry, each firm has a total cost function of TC = 400...
In a perfectly competitive industry, each firm has a total cost
function of TC = 400 + 10q + q2 and a marginal cost curve of MC =
10 + 2q if it produces a positive quantity of output q. If a firm
produces zero output it has no costs. The market price is $50.
Which statement is true?]
a. Each firm produces 20 units of output; the industry will
require entry to reach its long-run equilibrium.
b. Each firm...
Assume that a firm in perfectly competitive industry has the following total cost schedule: Q TC...
Assume that a firm in perfectly competitive industry has the
following total cost schedule:
Q
TC
10
110
15
150
20
180
25
225
30
300
35
385
40
480
Calculate the marginal cost and average cost schedule for the
firm.
If the prevailing market price is $17 per unit, how many units
will be produced and sold? What at the profits per unit?
What are the total profits?
Is the industry in long-run equilibrium at this price?
A firm produces a product in a competitive industry and has a total cost function TC...
A firm produces a product in a competitive industry and has a
total cost function TC = 50 + 4Q +2Q² and MC = 4 + 4Q. At the given
market price of $20, the firm is producing 5 units of output. Is
the firm maximizing profit ? What quantity of output should the
firm produce in the long run?
Suppose that a firm in a monopolistically competitive market has a cost function of TC= 100,000...
Suppose that a firm in a monopolistically competitive market has
a cost function of TC= 100,000 + 20Q.
What is the marginal cost function?
If the price elasticity of demand is currently -1.5, what price
should the firm charge?
What is the marginal revenue at the price computed in part
b)?
If a competitor develops a substitute product and the price
elasticity of demand increases to -3.0, what price should the firm
now charge?
1. Suppose a firm has the following total cost function: TC = 100 + 4q^2 a....
1. Suppose a firm has the following total cost function: TC =
100 + 4q^2
a. What is the minimum price necessary for the firm to earn
profit? You must explain
your reasoning and process as to how your found the price you
found.
b. Below what price will the firm shut down in the short
run?
Suppose that the demand for stilts is given by Q=1500-50P and that the long-run total operating costs of each stilt making firm in a competitive industry are given by TC=50+10q+0.5q2 .
Suppose that the demand for stilts is given by Q=1500-50P and
that the long-run total operating costs of each stilt making firm
in a competitive industry are given by TC=50+10q+0.5q2 .How many stilts are produced by each firm?What is the long-run equilibrium price of stilts? What is the
long-run equilibrium quantity of stilts produced in the market? How
many firms will there be?
Suppose that you manage a firm in a perfectly competitive market that has the following costs...
Suppose that you manage a firm in a perfectly competitive market
that has the following costs of production:
Quantity
Total Cost
0
$5
1
$8
2
$10
3
$13
4
$18
5
$24
6
$32
7
$42
8
$53
9
$66
10
$81
If the market price is $6, how many units should you produce to
maximize profit?
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