2. An industry currently consists of 14 producers, all of whom operate with the same short-run...
Please answer me in detail. Thank you.
Market demand curve is D(P)=400-5P.
The oil drilling industry consists of 60 producers, all of whom have an identical short- run total cost curve, STC(Q) = 64 + 2Q2, where Q is the monthly output of a firm and $64 is the monthly fixed cost. The corresponding short-run marginal cost curve is SMC(Q) 4Q. Assume that $32 of the firm's monthly $64 fixed cost can be avoided if the firm produces zero output...
2. In the local cabbage market, there are 5,000 producers that have identical short-run cost functions. They are: where q is the number of bushels produced each period. Out of the fixed cost, 50% is sunk and 50% is non-sunk. The short-run marginal cost function for each producer is: MC(q) = 0.05q. (3*2.5 = 7.5) a) If the local cabbage market is perfectly competitive, what is each cabbage producer's short-run supply curve? Derive the local market supply curve of cabbage....
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...
Please write essential steps and clear writing
2. Assume that a monopolists sells a product in the short- run with a total cost function STC(Q)- 108 125 + 440 Q2 Q >0 The market demand curve is given by the equation P(Q)80- 2Q (a) Find the marginal cost for the firm. (b) Find the profit-maximizing output and price (P", (c) What are the monopolists profits? (d) Does the monopolist want to stay in business?
2. Assume that a monopolists sells...
Brice is a seller of lemonade operating in the perfectly competitive lemonade stand market Brice's short-run total cost curve is given by STC(Q) = 400 2Q + 0.5Q2, where Q is the number of cups of lemonade sold per month. (a) What is the equation for the average variable cost (AVC)? (b) Assuming all fixed costs are sunk, what is the shutdown price for Brice? In this case, what is Brice's short-run supply curve? (c) Assuming $200 of the fixed...
For a constant cost industry in which all firms the same cost functions, their long-run average cost is minimized at $10 per unit output and 20 units (i.e. q = 20). Market demand is given by QD=DP=1,500-50P. Find the long-run market supply function Find the long-run equilibrium price (P*), market quantity (Q*), firm output (q*), number of firms (n), and each firm’s profit. The short-run total cost function associated with each firm’s long-run costs is SCq=0.5q2-10q+200. Calculate the short-run average...
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...
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
Consider a perfectly competitive market in the short-run. All firms have access to the same technology. the total cost of production for the firm is given by TC(q) = 113+9q 2 if q>0 and 32, if q=0. a. Derive the supply curve for an individual firm. b. What is the price at which firms will shutdown?
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...