1) Suppose the second-hand market for concert tickets is perfectly competitive and there are primarily 10...

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1) Suppose the second-hand market for concert tickets is perfectly competitive and there are primarily 10...

1) Suppose the second-hand market for concert tickets is perfectly competitive and there are primarily 10 online websites where consumers can buy tickets. The following describes the market demand for concerts and the cost of selling tickets.

Market Demand: Q = 480 - 4p

Cost to Firm: c(q) = 2.5q^2 + 100

Market Structure: Perfect Competition with N = 10 in the short run

Supply – Firm and Market

a) Derive the supply curve for each firm given its MC.

b) What is the aggregate market supply of the 10 firms?

Market Equilibrium – Intersection of Market Demand and Market Supply

c) What is the market equilibrium price of concert tickets?

d) How many tickets are sold in the market?

business economics

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Answer 1

Answer #1

Ca) Mc wewe is the supply curve м сеѕ a Pesq Tq- prsl firm supply cwive. Aggregate market supply curul l=109=100 Os=2p) To=48

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Answer 2

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