Homework Answers
Answer
the long-run equilibrium price is equal to the minimum average total cost and the average total cost quantity is found by the first differentiation of ATC equating to zero.
the price is $3.16
Add Answer to:
Consider a firm in a market that is in a long-run, perfectly competitive equilibrium. If the...
The perfectly competitive firm and market in the short run Consider a perfectly competitive market where...
The perfectly competitive firm and market in the short run Consider a perfectly competitive market where demand is QD = 2,000 - 40P and quantity is measured in units while price is measured in dollars per unit. The long run supply is QS = 100P - 800. a) Find the equilibrium price and the equilibrium quantity. b) When the market is in equilibrium, what is the total expenditure in this market? c) When the market is in equilibrium, what is...
cardboard boxes are produced in a perfectly competitive market. each identical firm has a short run...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
Consider a competitive firm with costs of C(q) = 64 + 4q2, where q is output. If price is $40 a) what is the quantity the firm will supply? is this market in its long-run equilibrium? b) provided that...
Consider a competitive firm with costs of C(q) = 64 + 4q2, where q is output. If price is $40 a) what is the quantity the firm will supply? is this market in its long-run equilibrium? b) provided that q > 0. What is the price and the quantity sold by the firm in the long-run equilibrium?
A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q)...
A firm in a perfectly competitive market has a short-run total cost curve of ST C(Q) = 20 + 10Q + Q2. The market price is $10. a) What is the profit-maximizing quantity? b) What are the maximum profits? c) Find the short-run supply curve if all fixed costs are sunk. d) Find the short-run supply curve if all fixed costs are non-sunk. e) Suppose there are 100 identical firms in this market. What is the market supply curve if...
Short-run Equilibrium: Bumper sticker firms produce bumper stickers in a perfectly competitive market. Each identical firm...
Short-run Equilibrium: Bumper sticker firms produce bumper stickers in a perfectly competitive market. Each identical firm has a short-run total cost function equal to: STC (Q) = 3 + 2q + 2Q2. Suppose that there are 100 firms, and the market demand is D(P) = 100 - 5P where D(P) is the quantity consumed in the market when the market price is P. 1. What is the short-run equilibrium price? 2. How much does each firm produce? 3. Are they...
i) The long run cost function for each firm in a perfectly competitive market is c(q)...
i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.5, market demand curve is Q=1600-2p. Find price (p) of output and the level of output (q) produced by the firm in a long run equilibrium. Find the long run average cost curve for the firm. ii) what happens in the long run if the market demand curve shifts to Q=160-20p?/ -A competitive industry is in long run equilibrium....
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. Assume that, regardless...
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per ton) + MC D AVC 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of tons) The following diagram shows the...
Each firm in a perfectly competitive market has long run average cost represented as AC(q) =...
Each firm in a perfectly competitive market has long run average cost represented as AC(q) = 100q- 10+100/q. Long run marginal cost is MC=200q-10. The market demand is Qd = 2150-5P. Find the long run equilibrium output per firm, q*, the long run equilibrium price, P*, and the number of firms in the industry, n*. P = 190; Q = 1200; q =1 , n = 1200
There is an equilibrium price of $60 in a perfectly competitive market for a good that...
There is an equilibrium price of $60 in a perfectly competitive market for a good that can be produced in continuous quantities. One firm in this market has a marginal cost of $60 at q = 15. If this firm produces q =15, it has an economic profit of -$400. Which of the following statements are true? i) if the firm has fixed costs of $300, then q =15 is the profit maximizing quantity in the short run for this...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is $1.50 and the cost functions are: TC(q) = 10 +.019+.19 MC(q) = .02q +.1 a) Find the profit-maximizing quantity of notebooks produced by a firm in this market. Also, calculate the profit each firm earns in the market. b) Graphically depict the firm's profit-maximization problem. This does not necessarily need to be to scale, but should accurately reflect the sign of the profit. c)...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...
Short-run Equilibrium: Bumper sticker firms produce bumper stickers in a perfectly competitive market. Each identical firm has a short-run total cost function equal to: STC (Q) = 3 + 2q + 2Q2. Suppose that there are 100 firms, and the market demand is D(P) = 100 - 5P where D(P) is the quantity consumed in the market when the market price is P. 1. What is the short-run equilibrium price? 2. How much does each firm produce? 3. Are they...
i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.5, market demand curve is Q=1600-2p. Find price (p) of output and the level of output (q) produced by the firm in a long run equilibrium. Find the long run average cost curve for the firm. ii) what happens in the long run if the market demand curve shifts to Q=160-20p?/ -A competitive industry is in long run equilibrium....
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per ton) + MC D AVC 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of tons) The following diagram shows the...
Question 1: Consider the perfectly competitive market for notebooks. The market price for a notebook is $1.50 and the cost functions are: TC(q) = 10 +.019+.19 MC(q) = .02q +.1 a) Find the profit-maximizing quantity of notebooks produced by a firm in this market. Also, calculate the profit each firm earns in the market. b) Graphically depict the firm's profit-maximization problem. This does not necessarily need to be to scale, but should accurately reflect the sign of the profit. c)...
Most questions answered within 3 hours.
-
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 5 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 7 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 26 minutes ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 30 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 33 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 45 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 50 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 51 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 50 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 1 hour ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 1 hour ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 1 hour ago