Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical...
There are 100 firms in a perfectly competitive industry. Each firm has the short-run supply curve q = P−2 for P > 2, and q = 0 for P≤2. The market supply curve for this industry is Q =100P − 200 for P > 2 and Q = 0 for P ≤ 2. If the market price is $8, the firms in the industry will supply a total of 600 units. Total producer surplus is $____________________ (enter as integer)
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)...
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...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd = 1000-20P (5pts) Calculate the short run equilibrium price and quantity for each firm.. b. (3pts) Suppose each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
3. Suppose that steel is produced by a competitive industry. Each firm in the industry has the following cost function: TC = 36+q?. The demand function is Q = 2520-10p a. Derive an expression for marginal cost? At what output is average cost minimized? What is the short run supply curve for this industry? Be as precise as you can. b. Suppose the government gives a subsidy of 11 to each firm in the industry. The subsidy is fixed and...
please answer ASAP please help A perfectly competitive industry is composed of 100 identical firms with cost structure: TCVC FC AVC ATC MC a) Complete the preceding Table. b) Assuming that the market price is p-8, what are the quantity produced by each firm and the profit it makes? c) Suppose that the market demand schedule is as follows: P QD 0 700 2 650 4 600 6 550 500 10 450 is the price p = 8 a short-run...
9.7 Newsprint (the paper used for newspapers) is produced in a perfectly competitive market. Each identical firm has a total variable cost TVC(Q) = 40Q+ 0.5Q2, with an associated marginal cost curve SMC(Q) = 40 + Q. A firms’s fixed cost is entirely nonsunk and equal to 50. (a) Calculate the price below which the firm will not produce any output in the short run. (b) Assume that there are 12 identical firms in this industry. Currently, the market demand...
Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COST PER UNIT IDollars per pound) 10 MC ATC AVC 0 5...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
1. Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5+2q+9. The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm's total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?