C(Q) = 175 + Q2
MC = dC(Q)/dQ = 2Q
ATC = C(Q)/Q = (175/Q) + Q
In long run equilibrium, Price = MC = ATC.
2Q = (175/Q) + Q
Q = 175/Q
Q2 = 175
Q = 13.23
P = MC = 2 x 13.23 = 26.46
Question 11 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are...
Question 10 (1 point) In a long-run competitive market equilibrium, existing firms produce at the efficient scale of production and make zero profit. True False Question 11 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = A +Q2 with fixed cost A=$125.0 and MCIQ)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places. Your Answer: Your Answer
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C() A2 with fixed cost A=$200.0 and MC(Q)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places.
Question 1 a) b) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = A + Q2 with fixed cost A=$150.0 and MC(Q)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places. Question 6 (1 point) Saved Suppose that in a perfectly competitive market, demand and supply are given by QD = 100 – bP QS = P – 20 where b=1.5. The...
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q)= 1002 with MC(Q)=2Q. Suppose also that market demand is given by P(Q)=A-0.04Q, where A-40.0. What is the equilibrium market quantity? No units, no rounding. Your Answer: Your Answer
Question 12 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = 100 + Q? with MCIQ)=2Q. Suppose also that market demand is given by P(Q)=A-0.04Q, where A=80.0. What is the equilibrium market quantity? No units, no rounding. Your Answer: Your Answer
Question 12 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = 100+Q2 with MCQ)=20. Suppose also that market demand is given by P(Q)=A-0.040, where A=40.0. What is the equilibrium market quantity? No units, no rounding. VA
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Firms in the short run market equilibrium from question 14 make positive profit. so, eventually new firms will enter the market and sunk fixed cost become avoidable fixed cost and the market enter a new long run market equilibrium.How many firms will exist in this new long run market equilibrium? no units , no rounding Question 14 (1 point) Saved Consider the long-run market equilibrium in Question 13 as a starting point. Now suppose that demand changes to Q=120.0-4P overnight....
Suppose there is a monopolistically competitive market with n identical firms, such that each firm produces the same quantity, q. Further, the market is in the monopolistically competitive long-run equilibrium. You are given the following: Inverse market demand: P 10-Q Total market output: Qnxq Marginal revenue: MR 10n+ 1)xq Total cost: C(q)-5+q Marginal cost: MC 2xq In long-run equilibrium, each firm earns zero economic profit. In long-run equilibrium, the number of firms, n, is and each firm produces units) of...
11. Kites are manufactured by identical firms in a perfectly competitive environment. Each firm’s long run average cost and marginal cost of production are given by: AC = Q + 100/Q and MC = 2Q where Q is the number of kites produced. a) In long run equilibrium, how many kites will each firm produce? (2 pts) b) What will the price of kites (P) be? (1 pt) c) Suppose the demand for kites is given by formula Q =...