6. Consider a perfectly competitive industry, which consists of many identical firms -all of them characterized...
Consider a perfectly competitive industry, which consists of many identical firms; all of them characterized by the following long run average and marginal cost curves: LATC = 2400-30Q+0.3Q^2 and LMC = 2400-60Q+0.9Q^2 a. In the long run equilibrium, how much will each firm produce? b. What will be the long run equilibrium price? c. What is the profit of each individual firm in this case? Briefly explain why.
A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q + 0.1Q2 and long-run marginal cost of LMC = 800 – 20Q + 0.3Q2. Identify the region of economies of scale and diseconomies of scale.
A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q + 0.1Q2 and long-run marginal cost of LMC = 800 – 20Q + 0.3Q2. Identify the region of economies of scale and diseconomies of scale.
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...
14. (Perfect Competition) Apples are produced in a perfectly competitive industry. As- sume that there are 100 identical firms in this industry. Below are graphs for the market supply and demand as well as the cost curves of these firms 6 MC ATC AVC 2 0 0 0 100 200 300 400 500 600 0 1 23 4 5 6 Q(kg) q(kg) (a) Draw the market supply curve for apples (b) What are the market price and quantity for apples?...
6. Suppose that the trucking market is a perfectly competitive industry in long run equi librium. Each of the identical trucking firms has the same (long run) cost function: TC = 2250 + 10q2, where q is the volume of sales by each establishment. Each of the identical firms therefore have the same marginal cost: MC = 20q (a) What is the average cost function for the identical trucking firms? (b) How much does each individual firm produce in the...
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...
2. (1.5 p) Consider perfectly competitive industry with identical firms. The long run average cots function of a typical firm is given by AC(q)- 24 - 49 + q. Market demand is given by c p)=100-2p. (a) Find the long run supply curve of the typical firm. (b) Find the number of firms in the industry in the long run equilibrium.
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...
Аа Аа 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. COSTS Dollars per pound) 10 MC 9 8 7 ATC...