An industry has 100 firms with identical production function. In the short run, each firm has fixed costs of $200.
There are 2 variable factors in the short run and output is given by y=(min{x1,3x2})(1/2) . Suppose ω1=5, ω2=4.
Obtain the industry supply curve in the short run.
An industry has 100 firms with identical production function. In the short run, each firm has...
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...
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)
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
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
2. An industry consists of many identical firms, each with the cost function C(q) = 100 + 30q – 8q2 + q3 a. Derive the average cost, average variable cost, and marginal cost curves of a firm. b. Compute the outputs at which the AC and AVC curves reach their minimums. C. If the market price is $40, and each firm is a price-taker, how much output will each firm supply? d. How much profit or loss is each firm...
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 $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
21. The widget industry is a constant-cost industry, so that all firms are identical. The following chart shows the industry-wide demand curve and the marginal cost curve of a typical firm: Industry-Wide Demand Price ($) Quantity Firm's Marginal Cost Curve Quantity Marginal Cost ($) 500 oooooow 400 300 200 100 + LOCO cocoon The industry is in long-run equilibrium and there are 100 fims. a. What are the fixed costs at each firm? b. What is the price of a...
Exercise 1. Short-Run Industry Supply Curve In a perfectly competitive market there are n firms with identical technology: yi=Li½Ki½. Each firm’s cost function is Ci=wLi+rKi where w=r=1. a) In the short run all firms have a fixed level of Ki=100, so that yi=10Li½ and Ci=Li+100. What is the cost function Ci(yi)? What is the short-run average cost function ACi(yi)? b) What is each firm’s marginal cost function MCi(yi)? What is each firm’s short-run supply function si(p)? Find the inverse of...
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.
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the producer surplus for each firm?