(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
Homework Answers
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.
(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.
(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...
4) Suppose each firm's long run average cost curve, for positive levels of output, is given by AC 0.10.05Q+5/Q. The...
4) Suppose each firm's long run average cost curve, for positive levels of output, is given by AC 0.10.05Q+5/Q. The marginal cost curve is given by MC 0.+0.1Q. (a) Find the minimum efficient scale for the above cost function (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P 13.1-0.040. What is the market quantity? How many firms are there? (d) Suppose demand increases to P...
Info I found from answers I got for other questions: MC=q/500; AC=q/1000+9000/q; Firm size that minimizes...
Info I found from answers I got for other questions:
MC=q/500; AC=q/1000+9000/q; Firm size that minimizes average
cost-->q=3000; Long Run Price-->P=AC=$6; Equilibrium quantity
of pickles consumed=30,000; number of canaries in the industry=10;
short-run supply-->q=500P
A) What is the quantity of pickles consumed in the short
run?
Suppose that the cost function for a pickle cannery is given by TC= 9000 1000
Suppose that the cost function for a pickle cannery is given by TC= 9000 1000
Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05Q + 5/Q....
Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05Q + 5/Q. The marginal cost curve is given by MC = 0.1 + 0.1Q. (a) Find the minimum efficient scale for the above cost function. (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P = 13.1-0.04Q. What is the market quantity? How many firms...
Econ 308 Fall 2019 Assignment 5 Deadline: Tuesday, Dec. 10th, 2019 1. Suppose a firm's total...
Econ 308 Fall 2019 Assignment 5 Deadline: Tuesday, Dec. 10th, 2019 1. Suppose a firm's total cost function is given by TC = 6,000 + 20 +0.250, where MC- 2 +0.50 a. What is the output level that minimizes total cost? b. What is the output level that minimizes average total cost? 2. A perfectly competitive industry in long-run equilibrium comprises 200 identical firms. In one of the firms, the workers unionize and receive a 20% wage increase. What happens...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average cost of the firm AC infinite AC# 24625 AC- 13.5 AC-10.625 АС. 10 AC# 11.5 AC-15 Q-0 Q#1 Q-2 Let inverse market demand be 12-Q. Is this industry a natural monopoly? Elaborate.
3. Let the average cost curve for any firm...
Question 2 (20 pts) In an industry there are N firms producing a homogeneous product. Let...
Question 2 (20 pts) In an industry there are N firms producing a homogeneous product. Let qi denote the output level of firm i, and Q denote the aggregate industry production level. That is, QAssume that the demand curve facing the industry is p 100 Q. Suppose that the cost function of each firm i is given by C(g) ifq0 a. Calculate the output and profit levels of each firm in a symmetric equilib- rium. b. What happens to profits...
(a) All firms in a perfectly competitive industry face the same long-run average cost curve, AC...
(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...
4) Suppose each firm's long run average cost curve, for positive levels of output, is given by AC 0.10.05Q+5/Q. The marginal cost curve is given by MC 0.+0.1Q. (a) Find the minimum efficient scale for the above cost function (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is P 13.1-0.040. What is the market quantity? How many firms are there? (d) Suppose demand increases to P...
Info I found from answers I got for other questions:
MC=q/500; AC=q/1000+9000/q; Firm size that minimizes average
cost-->q=3000; Long Run Price-->P=AC=$6; Equilibrium quantity
of pickles consumed=30,000; number of canaries in the industry=10;
short-run supply-->q=500P
A) What is the quantity of pickles consumed in the short
run?
Suppose that the cost function for a pickle cannery is given by TC= 9000 1000
Suppose that the cost function for a pickle cannery is given by TC= 9000 1000
Econ 308 Fall 2019 Assignment 5 Deadline: Tuesday, Dec. 10th, 2019 1. Suppose a firm's total cost function is given by TC = 6,000 + 20 +0.250, where MC- 2 +0.50 a. What is the output level that minimizes total cost? b. What is the output level that minimizes average total cost? 2. A perfectly competitive industry in long-run equilibrium comprises 200 identical firms. In one of the firms, the workers unionize and receive a 20% wage increase. What happens...
3. Let the average cost curve for any firm in an industryb AC 12 where Q is firm output so that the average cost for various levels of output is the following: Level of output of the firm Average cost of the firm AC infinite AC# 24625 AC- 13.5 AC-10.625 АС. 10 AC# 11.5 AC-15 Q-0 Q#1 Q-2 Let inverse market demand be 12-Q. Is this industry a natural monopoly? Elaborate.
3. Let the average cost curve for any firm...
Question 2 (20 pts) In an industry there are N firms producing a homogeneous product. Let qi denote the output level of firm i, and Q denote the aggregate industry production level. That is, QAssume that the demand curve facing the industry is p 100 Q. Suppose that the cost function of each firm i is given by C(g) ifq0 a. Calculate the output and profit levels of each firm in a symmetric equilib- rium. b. What happens to profits...
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