Consider a market that faces the following market supply and demand functions Q^S = −2 +...
Consider a market that faces the following market supply and demand functions
Q^S = −2 + 2p
Q^D = 16 − p
where identical firms face the total cost function of
T C = 8 + 3q + 1/2q^2
a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) In the short run, how much does each firm produce? d) In the short run, how much economic profit or loss will be obtained? e) Based on the results in part (d), will firms want to enter or exit the market? Why? f) In the long run, what is the market price? (Hint: You can find the long run firm quantity by setting two of the cost functions equal to one another)
Homework Answers
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Consider a market that faces the following market supply and
demand functions
Q^S = −2 +...
a) What is the market price? p = 8 b) Derive the average variable cost, average...
a) What is the market price? p = 8
b) Derive the average variable cost, average total cost, and
marginal cost function.
avc = 1 + q
atc = 4/q + 1 + q
mc = 1 + 2q
c) In the short run, how much does each firm produce?
qs = 6
d) In the short run, how much economic profit or loss will be
obtained?
ep = 2
e) Based on the results in...
I JUST NEED D,E,F answered. posted a-c. EconS 305 - Intermediate Microeconomics without Calculus Problem Set #4 1....
I JUST NEED D,E,F answered. posted a-c.
EconS 305 - Intermediate Microeconomics without Calculus Problem Set #4 1. Perfect Competition Consider a market that faces the following market supply and demand functions QS = -2+p QP = 10 -5P where identical firms face the total cost function of TC = 4+9+92 a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) in the short rmm, how much does each firm...
1. Market demand is given as Q = 220 - 4P. Market supply is given as...
1. Market demand is given as Q = 220 - 4P. Market supply is given as Q = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.250. 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...
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.
Question 2 The tortilla industry commissions you to examine the outlook for firms selling tortillas. There...
Question 2 The tortilla industry commissions you to examine the outlook for firms selling tortillas. There are currently twenty, identical price-taking firms in this perfectly competitive market. Each firm has a short-run cost function of STC(Q) = 9+ 2Q + . When the price is P, the total quantity demanded is given by Q(P) = 100 – 2P . (a) Assuming all fixed costs are sunk, find the short-run supply curve for a typical firm. (b) In the short run,...
1) Assume that a firm faces the following cost function: TC(q) = 980 + 10q2 –...
1) Assume that a firm faces the following cost function: TC(q) = 980 + 10q2 – 5q + 20 a) Derive the long-term supply curve for this individual firm. b) If market price is equal to p=40 what quantity would be supplied? c) Calculate profit at p=300. d) with free entry and exit and identical firms what would be the long term supply curve for this industry?
5. Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of...
5. Short-run supply and long-run
equilibrium
Consider the competitive market for titanium. Assume that,
regardless of how many firms are in the industry, every firm in the
industry is identical and faces the marginal cost (MC), average
total cost (ATC), and average variable cost (AVC) curves shown on
the following graph.
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost...
Consider a perfectly competitive market comprised of identical firms each facing the following cost function: C(q)...
Consider a perfectly competitive market comprised of identical firms each facing the following cost function: C(q) = 4 +q? where q is the firm-specific level of production of the representative firm. The market demand function is Q(p) = 400 - 4p where Q(p) is the aggregate demand in the market (expressed as function of price) and p is the price a) Derive the firm-specific supply function of the representative firm as a function of price b) Assume there are N...
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...
Section iV: Problems 19. Suppose there is a competitive industry in which, at this market supply...
Section iV: Problems 19. Suppose there is a competitive industry in which, at this market supply is given by P-100 + Q A) What is the market price and quantity for the product in this market? In this industry, each firm faces a cost structure as follows: TC 100q+ q'. Based on this TC structure, Marginal cost 2q+ B) What is the firm's profit maximizing quantity of output? C) What is the firm's total revenue, total cost and profit? D)...
a) What is the market price? p = 8
b) Derive the average variable cost, average total cost, and
marginal cost function.
avc = 1 + q
atc = 4/q + 1 + q
mc = 1 + 2q
c) In the short run, how much does each firm produce?
qs = 6
d) In the short run, how much economic profit or loss will be
obtained?
ep = 2
e) Based on the results in...
I JUST NEED D,E,F answered. posted a-c.
EconS 305 - Intermediate Microeconomics without Calculus Problem Set #4 1. Perfect Competition Consider a market that faces the following market supply and demand functions QS = -2+p QP = 10 -5P where identical firms face the total cost function of TC = 4+9+92 a) What is the market price? b) Derive the average variable cost, average total cost, and marginal cost functions. c) in the short rmm, how much does each firm...
1. Market demand is given as Q = 220 - 4P. Market supply is given as Q = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.250. 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...
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.
Question 2 The tortilla industry commissions you to examine the outlook for firms selling tortillas. There are currently twenty, identical price-taking firms in this perfectly competitive market. Each firm has a short-run cost function of STC(Q) = 9+ 2Q + . When the price is P, the total quantity demanded is given by Q(P) = 100 – 2P . (a) Assuming all fixed costs are sunk, find the short-run supply curve for a typical firm. (b) In the short run,...
1) Assume that a firm faces the following cost function: TC(q) = 980 + 10q2 – 5q + 20 a) Derive the long-term supply curve for this individual firm. b) If market price is equal to p=40 what quantity would be supplied? c) Calculate profit at p=300. d) with free entry and exit and identical firms what would be the long term supply curve for this industry?
5. Short-run supply and long-run
equilibrium
Consider the competitive market for titanium. Assume that,
regardless of how many firms are in the industry, every firm in the
industry is identical and faces the marginal cost (MC), average
total cost (ATC), and average variable cost (AVC) curves shown on
the following graph.
Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost...
Consider a perfectly competitive market comprised of identical firms each facing the following cost function: C(q) = 4 +q? where q is the firm-specific level of production of the representative firm. The market demand function is Q(p) = 400 - 4p where Q(p) is the aggregate demand in the market (expressed as function of price) and p is the price a) Derive the firm-specific supply function of the representative firm as a function of price b) Assume there are N...
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...
Section iV: Problems 19. Suppose there is a competitive industry in which, at this market supply is given by P-100 + Q A) What is the market price and quantity for the product in this market? In this industry, each firm faces a cost structure as follows: TC 100q+ q'. Based on this TC structure, Marginal cost 2q+ B) What is the firm's profit maximizing quantity of output? C) What is the firm's total revenue, total cost and profit? D)...
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