Suppose there was an industry with 20 identical firms with marginal cost given by: MC= 10 + 0.4q. Use horizontal summation to find the total supply function for this industry. Fill in the blanks below. QS = 50P - ( )
Suppose there was an industry with 20 identical firms with marginal cost given by: MC= 10...
Question 16 Tries remaining: 2 Points out of 6.25 Suppose there was an industry with 5 identical firms with marginal cost given by: MC- 10 + 2.5q. Use horizontal summation to find the total supply function for this industry. Fill in the blanks below. Flag question (Round to the nearest two decimal places if necessary. You will not need to include a negative sign in your response.,) Check
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
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 + q2 + 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 = 900 - 2Q where Q is the market quantity. In addition, you are told that...
6. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the Industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
For a constant cost industry in which all firms the same cost functions, their long-run average cost is minimized at $10 per unit output and 20 units (i.e. q = 20). Market demand is given by QD=DP=1,500-50P. Find the long-run market supply function Find the long-run equilibrium price (P*), market quantity (Q*), firm output (q*), number of firms (n), and each firm’s profit. The short-run total cost function associated with each firm’s long-run costs is SCq=0.5q2-10q+200. Calculate the short-run average...
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.The following diagram shows the market demand for copper.Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
(a) All firms in a perfectly competitive industry face the same long-run average cost curve, AC = 0.05q – 5 + 500/q, and the same long-run marginal cost curve given by MC = 0.1q – 5. The market demand for the product of these firms is QD = 100,000 – 10,000P. i.Calculate the equilibrium price and quantity. ii.Assuming the market is in long-run equilibrium, how many firms will be on the market? (b) Suppose the demand for cotton T-shirts is...
Suppose that a price taker had a marginal cost function given by: MC = 10 + 2q. In a competitive market, the price is $20. If the firms in this industry form a cartel, this firm will have a production quota of 4 units. The cartel will be able to increase the price to $24. 21 betermine the producer surplus when the firm produces the production quota. 22)Suppose that if this firm cheats on the cartel, the price remains at...
Suppose you are asked to analyze a competitive market with identical firms for the government. You estimate the following: Inverse market demand is: p= 100 -0.01Q, The long-run market supply is: p = 20 Each firm's total cost function is: C(q) = 500 +0.2002 What is the marginal cost faced by each firm? MC=0 Assuming the industry is in long-run equilibrium, how many firms are currently in this market? (enter your answer rounded to the nearest whole number). Now suppose...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...