Suppose there is free entry in the market for microphones. The demand for microphones is given by: QD= 952 -4P. All firms that produce microphones have identical long run average total cost functions given by: ATC = 2116/q + 8 + q. Calculate the long run number of firms in this market
Suppose there is free entry in the market for microphones. The demand for microphones is given...
Suppose there is free entry in the market for microphones. The demand for microphones is given by: QD= 2779 -7P. All firms that produce microphones have identical long run average total cost functions given by: ATC = 3528/q + 7 + 8q. Calculate the long run number of firms in this market.
Tries remaining: 2 Tries remainig:2 All firms that produce microphones have identical long run average total cost functions given by: ATC Points out of 6.25 a ri ramaining: 2 Suppose there is free entry in the market for microphones. The demand for microphones is given by: 642-9P 180/q+8 +5q Calculate the long run number of firms in this market. P Flag question Answer: Check
Market demand is given as QD = 220 – 4P. Market supply is given as QS = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is a firm’s average total cost? 2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand. c) The adoption of a new technology that...
1. (25 points) The market for study desks is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. All firms are identical in terms of their technological capabilities. Thus the cost function as given below for a representative firm can be assumed to function faced by each firm in the industry. The total cost and marginal cost functions t the representative firm are...
Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by: TC(Q) = 4 q3 - 35 q2 + 350 q If the market demand is: QD = 8,000 - 2 P 1. What is the quantity of output that minimizes average total cost? ____________ 2. What is the long run equilibrium price? ____________ 3. Using market demand, what is the equilibrium total industry output? ____________ 4. What is the...
1. Market demand is given as Q = 220 - 4P. Market supply is given as Q = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.250. What is a firm's average total cost? 2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand c) The adoption of a new technology...
Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. a) What is the new long-run equilibrium price? b) How...
Suppose that the market for laptops is perfectly competitive. These companies are identical with their long-run cost functions for a full day of keyboarding given by: TC(Q) = 6Q3-30Q2+200Q Market Demand is: Qd = 8,000 - 20P a. Find the long-run equilibirum price in this industry b. Use market demand to find the equilibrium total industry output. c. Find the equilibrium number of firms.
Suppose a firm has a long run average total cost function given by: ATC= (3200/Q) + 10 + 8Q. The demand for this product is given by: QD= 2900-8P Determine the optimal firm size. 20 units -answer Calculate the long run number of firms.13 firms - answer (answers are given, please show steps as to how to get there)
This is a two part question. Suppose that all firms in a perfectly competitive market are identical and have the following cost function C(Q)= 16Q with MC-2Q. Suppose that fixed cost are all avoidable. Market demand is given by Q=A-4P, where A-80.0. How many firms exist in the long-run market equilibrium? No units, no rounding. Your Answer: Your Answer Question 14 (1 point) Consider the long-run market equilibrium in Question 13 as a starting point. Now suppose that demand changes...