(b) Find the short run supply function for each firm.
The demand curve for a product is given by Q = 800 – 0.1P where P denotes price and Q denotes quantity of the product. The industry comprises large number of firms. Each firm's cost function is
C(q) = 2000 + 500q+ 20q2
(b) Find the short run supply function for each firm.
Homework Answers
Answer
the marginal cost curve of these firms is:
The marginal cost curve is a supply curve for the firm as the firm can supply any quantity at market price.
the supply curve of each firm is
P=500+40q
The demand curve for a product is given by Q = 800 – 0.1P
The demand curve for a product is given by Q = 800 – 0.1P where P denotes price and Q denotes quantity of the product. The industry comprises large number of firms. Each firm's cost function is C(q) = 2000 + 500q+ 20q2(c) Assuming that there are 20 firms in the industry. Find the industry supply function. Using industry supply and demand function find price and aggregate output in the short-run equilibrium.
(e) Suppose there is free entry and exit of firms in this industry.
The demand curve for a product is given by Q = 800 – 0.1P where P denotes price and Q denotes quantity of the product. The industry comprises large number of firms. Each firm's cost function is C(q) = 2000 + 500q+ 20q2(e) Suppose there is free entry and exit of firms in this industry. Upon entry, the firms act as price-takers. Find the equilibrium price and aggregate output. How many firms will be there in this industry in the long...
(d) Let qmin denote the value of q that minimizes AC
The demand curve for a product is given by Q = 800 – 0.1P where P denotes price and Q denotes quantity of the product. The industry comprises large number of firms. Each firm's cost function is C(q) = 2000 + 500q+ 20q2(d) Let qmin denote the value of q that minimizes AC. Also, let ACmin denote the value of AC at q = qmin. Find qmin and ACmin
1. The bolt-making industry has 20 identical firms, each one has a short-run total cost function...
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Suppose that each firm in a competitive industry has the following costs:Total Cost: TC=50+1/2 q2Marginal Cost: MC=qwhere q is an individual firm's quantity produced.The market demand curve for this product is:Demand QD=160-4 Pwhere 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?1/2 q50+1/2 q1/2 q^{2}qWhich of the following represents the equation for each firm's average total cost?50/q+1/2 q50+1/2 q50/q1/2 qComplete the following table by computing the...
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1. The bolt-making industry has 20 identical firms, each one has a short-run total cost function TC(q) 16 + q2 (a) What is the short-run supply of each firm? (b) The market demand is QD(p) = 110-p. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's profit. (c) Suppose that the number of firms increases to 25. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's profit
83 Find more at www.downloadslide CHAPTER 9 PERFECTLY COMPETITIVE MARK 384 D What is Ron's short-run supply curve, assuming that all of the $40 per day fixed costs are sunk? e) What is Ron's short-run supply curve, assuming that if he produces zero output, he can rent or sell his fixed a) How large Explain. b) What wou Explain. c) Draw a gr firm. Label i and therefore avoid all his fixed costs? The bolt-making industry currently consists of 20...
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