ZuoTi.Pro
Question

4. Consider a market where 100 firms are in operation in the short run. Each firms cost function is TC 450 2q. The market de

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

tirm n Short -&uy 100 Competitiou Pzafect 2 +3 TC =49o MC-DTC da 8T4 lRo0 -S sP (200 1 (200 240 S shoot Equilibriun P MC R4o-equato Price ute Subaitutg I143 - $ 228. s? TC = 2 (S714) +6529.95 6 9 7 9.S TR P.Q 328 S7 S.14 1 (30 0 48 Profit TR-TC 679.9Lovy uilibnum une- ATC =TC 480 2Q uso 28 ATC M +28 uso yQ-2a 20 2 450 J225 unurds equation Fute mce Substiteatig240-3 P 337 of Airm naus Jov Bucsecee Prom to More l00 Arns ntorwaio wart he firus aiven nuwbz be of Can not detramined

0 0
Add a comment
Know the answer?
Add Answer to:
4. Consider a market where 100 firms are in operation in the short run. Each firm's...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs...

    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...

  • 4. Consider an economy with 24 firms in the short run. The market demand function is...

    4. Consider an economy with 24 firms in the short run. The market demand function is given by p= 50 – 2Q. A firm's cost function is C(q) = 3+q?. (a) [10 pts) Derive the equilibrium price in the short run. ts] Firms face a cost of 6 to enter this industry. Calculate the equilibrium price and number of firms in the long run.

  • 1. The bolt-making industry has 20 identical firms, each one has a short-run total cost function...

    1. The bolt-making industry has 20 identical firms, each one has a short-run total cost function TC(q) 16 + q2 (a) What is the short-run supply of each firm? (b) The market demand is QD(p) = 110-p. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's profit. (c) Suppose that the number of firms increases to 25. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's profit

  • Short-run Equilibrium: Bumper sticker firms produce bumper stickers in a perfectly competitive market. Each identical firm...

    Short-run Equilibrium: Bumper sticker firms produce bumper stickers in a perfectly competitive market. Each identical firm has a short-run total cost function equal to: STC (Q) = 3 + 2q + 2Q2. Suppose that there are 100 firms, and the market demand is D(P) = 100 - 5P where D(P) is the quantity consumed in the market when the market price is P. 1. What is the short-run equilibrium price? 2. How much does each firm produce? 3. Are they...

  • 2. A competitive industry has 12 identical firms, each one has a total variable cost function...

    2. A competitive industry has 12 identical firms, each one has a total variable cost function TVC(a) 402 and a marginal cost function MC(a) 40+q, the firm's fixed cost.s are entirely non-sunk (that is, must be paid only if q >0) and equal to 50. (a) Calculate the price below which the firm will produce q 0. (b) The market demand is QD(p) 360-2p. What is the short-run equilibrium price and quantity supplied by each firm? Calculate each firm's proft...

  • 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...

  • Question No. 3 (25pts.) The market for wheat consists of 500 identical firms, each with a...

    Question No. 3 (25pts.) The market for wheat consists of 500 identical firms, each with a total cost function given as: TC = 90,000 + 0.0000 1Q2 where Q is measured in bushels per year. The market demand curve for wheat is: Q = 90,000,000-20,000,OOOP where P is the price per bushel. A. Determine the short-run equilibrium price and quantity that would exist in the market. Calculate the profit maximizing quantity for the individual firm. Calculate the firm's short-run profit...

  • Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2...

    Suppose that each firm in a competitive industry has the following costs: Total Cost: TC= 50+1/2 q^2 Marginal Cost: MC= q where qq is an individual firm's quantity produced. The market demand curve for this product is Demand QD=160−4PQD=160−4P where PP is the price and QQ is the total quantity of the good. Each firm's fixed cost is $_____ What is each firm's variable cost? q 50+1/2 q 1/2q 1/2q^2 Which of the following represents the equation for each firm's...

  • If there were 10 firms in this market, the short-run equilibrium price of copper would be...

    If there were 10 firms in this market, the short-run equilibrium price of copper would be $___ per pound. At that price firms in this industry would (shut down / operate at a loss / earn zero profit / earn a positive profit). Therefore, in the long run firms would (enter / exit / neither enter nor exit) the copper market. Because you know that competitive firms earn (positive / zero / negative) economic profit in the long-run equilibrium price...

  • This is a two part question. Suppose that all firms in a perfectly competitive market are...

    This is a two part question. Suppose that all firms in a perfectly competitive market are identical and have the following cost function C(Q)= 16Q with MC-2Q. Suppose that fixed cost are all avoidable. Market demand is given by Q=A-4P, where A-80.0. How many firms exist in the long-run market equilibrium? No units, no rounding. Your Answer: Your Answer Question 14 (1 point) Consider the long-run market equilibrium in Question 13 as a starting point. Now suppose that demand changes...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT