Assume quantities need not be integers. Market demand is MWTP=80-Q. Each firm in a constant-cost industry...
Assume quantities need not be integers. Market demand is
MWTP=80-Q. Each firm in a constant-cost industry has total costs
and marginal costs are MC(q)=40+10q. If there are currently 10
firms in the market, what is short-run
equilibrium price? Enter a number only, no $ sign.
Homework Answers
Answer
the individual firm supply curve is the MC curve
MC=40+10q
P=40+10q
converting to normal form
10q=40+P
q=-4+0.1P
the market supply is
Q=q*10=40+P
Q=-40+P
converting to the inverse supply of market
P=Q+40
equating with demand
80-Q=Q+40
2Q=40
Q=20 units
P=80-20=60
the price is $60
Add Answer to:
Assume quantities need not be integers. Market demand is
MWTP=80-Q. Each firm in a constant-cost industry...
For a constant cost industry in which all firms the same cost functions, their long-run average...
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...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
Please be descriptive. The market demand curve in a commodity chemical industry is given by Q...
Please be descriptive.
The market demand curve in a commodity chemical industry is given by Q 600 - 3P, where Q is the quantity demanded per month and P is the market price in dollars. Firms in this industry supply quantities every month, and the resulting market price occurs at the point at which the quantity demanded equals the total quantity supplied. Suppose there are two firms in this industry, Firm 1 and Firm 2. Each firm has an identical...
А - ВО, 2. A competitive where Q is the market output. Each firm in the industry has the same cost function, c(q) q?. A...
А - ВО, 2. A competitive where Q is the market output. Each firm in the industry has the same cost function, c(q) q?. A industry has a linear market demand: p _ (i) Suppose there are n firms in this industry in the short-run. What is the short-run equilibrium price? Calculate the total consumer surplus at this short-run equilibrium. (ii) Suppose now the government imposes a per-unit tax t > 0, to be paid by the firms. What is...
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC =...
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...
Consider the competitive market for copper. 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)
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. 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. The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
Market Supply and Demand Functions Cost functions for a typical firm in the industry $72 $72...
Market Supply and Demand Functions Cost functions for a typical firm in the industry $72 $72 $68 $64 $60 $56 $52 $68 $64 ATC $40 $36 $28 $24 1800 2100 2400 2700 3000 3300 3600 3900 4200 4500 4800 0 2 4 6 8 10 12 14 16 18 20 Consider the file HW6 - Short Run & Long Run. Currently, the equilibrium price of the product is dollars per unit, the equilibrium quantity is units, and there are firms...
Suppose that a particular firm is in a perfectly competitive constant-cost industry. When it is using...
Suppose that a particular firm is in a perfectly competitive constant-cost industry. When it is using the optimal amount of capital for the long-run, total cost is C(q)=1000+(q2/10), ATC(q)=(1000/q)+q/10, and marginal cost is MC(q)=2q/10. This implies that ATC=MC at a quantity of 100 and a per unit cost of $20. 1. At what quantity is average total cost minimized? 2. What is the long-run competitive equilibrium price? 3. If market demand is QD=12,000-200P and short-run market supply is QS=300P, what...
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
Consider the competitive market for copper. 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
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. 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.The following diagram shows the market demand for copper.Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
Please be descriptive.
The market demand curve in a commodity chemical industry is given by Q 600 - 3P, where Q is the quantity demanded per month and P is the market price in dollars. Firms in this industry supply quantities every month, and the resulting market price occurs at the point at which the quantity demanded equals the total quantity supplied. Suppose there are two firms in this industry, Firm 1 and Firm 2. Each firm has an identical...
А - ВО, 2. A competitive where Q is the market output. Each firm in the industry has the same cost function, c(q) q?. A industry has a linear market demand: p _ (i) Suppose there are n firms in this industry in the short-run. What is the short-run equilibrium price? Calculate the total consumer surplus at this short-run equilibrium. (ii) Suppose now the government imposes a per-unit tax t > 0, to be paid by the firms. What is...
Market Supply and Demand Functions Cost functions for a typical firm in the industry $72 $72 $68 $64 $60 $56 $52 $68 $64 ATC $40 $36 $28 $24 1800 2100 2400 2700 3000 3300 3600 3900 4200 4500 4800 0 2 4 6 8 10 12 14 16 18 20 Consider the file HW6 - Short Run & Long Run. Currently, the equilibrium price of the product is dollars per unit, the equilibrium quantity is units, and there are firms...
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 1 hour ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 1 hour ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 2 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 4 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 4 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 5 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 5 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 5 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 6 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 6 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 6 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 6 hours ago