Sol 1:
Firm is in equilibrium where Qd = Qs
220 - 4P = 2P + 40
180 = 6P
180/6 = P
30 = price
Qd = 220 - 4(30)
= 220 - 120
= 100
ATC = 0.25Q
= 0.25 x 100 = 25
(NOTE : As per the policy , we have to solve only 1 question per post. So , please post the remaining question in separate post. )
1. Market demand is given as Q = 220 - 4P. Market supply is given as...
Market demand is given as QD = 220 – 4P. Market supply is given as QS = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is a firm’s average total cost? 2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand. c) The adoption of a new technology that...
need answer quickly 1. Market demand is given as QP = 220 - 4P. Market supply is given as QS = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is a firm's average total cost?
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