Suppose the cellphone industry in the United States is perfectly competitive and contains 30 firms in...
Suppose the cellphone industry in the United States is perfectly competitive and contains 30 firms in total. The industry contains 10 firms with MC1 = 8 + 291. and 20 firms with MC2 = 8 + 492. What is the inverse market supply function? OP= 8+ We OP= 8 + 3Q OP= 8+ Toe OP = 8 + 200 OP = 240 + 100g
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)
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation TC = 100 + q2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 900 - 2Q where Q is the market quantity. In addition, you are told that...
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.
Question 27 A perfectly competitive industry is composed of 100 firms. Each firm has an identical short-run marginal cost function SMC = 5+10q (where q is the firm's level of output). If Q denotes industry output, what is the short-run market supply curve for output? a) Q = -50 + 10p if p > 5 and 0 if p 5 5 α Q = -5 + TOP p if p > 5 and 0 if p < 5 + α...
Suppose that leather is sold in a perfectly competitive industry. The industry short-run supply curve (marginal cost curve) is P = MC = 3Q. The demand for leather hides is given by Q = 60 − P. a. Find the equilibrium market price and quantity. b. Suppose that the leather tanning releases bad stuff into waterways. The external marginal cost is $5 per unit. Calculate the socially optimal level of output and price for the tanning industry. c. What are...
Suppose that leather is sold in a perfectly competitive industry. The industry short-run supply curve (marginal cost curve) is P = MC = 3Q. The demand for leather hides is given by Q = 60 − P. a. Find the equilibrium market price and quantity. b. Suppose that the leather tanning releases bad stuff into waterways. The external marginal cost is $5 per unit. Calculate the socially optimal level of output and price for the tanning industry. c. What are...
A representative firm in a perfectly competitive, constant cost industry has a cost function T C = 100+4Q 2+ 100Q. (a) What are this firm fixed cost, variable cost and marginal cost? (b) What is the long-run equilibrium price for this industry? (c) If the market demand is Q = 1000 − P , how many firms will operate in this long-run equilibrium? (d) What is the most that this firm would be willing to pay for the exclusive right...
Assume Pork and chicken market in China is perfectly competitive and 1000 firms are producing the pork. Following equations shows the TC for the production for short run and long run. Qd = 5000-4p STC(q) = 100 + 10q +q2 TC(q) = 100q – 2q2 + 0.2 q3 13.6 What is the short run shut down price, Ps? 13.7 Given 13.6, what is the equation for the short run supply curve for a producer? 13.8 What is the short run...
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...