Homework Answers
Option C, D, F, H
- It is given that a market is in a long run equilibrium and all the firms in this market have identical cost structures.
- When the market first leaves and then returns back to long run equilibrium, not only the individual firms are affected but also the whole market gets affected by this change.
- In the short run, the firms in the market will face lower market price in the short run.
- This will decrease their profit maximizing output in short run.
- Due to falling profits market quantity will eventually fall in the long run due to which many firms start to leave the market in long run.
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A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose...
1a. The market is in long-run equilibrium if: There are no new firms entering the markets,...
1a. The market is in long-run equilibrium if: There are no new firms entering the markets, but firms will high costs may exist. Firms are earning zero economic profits. Firms are charging the market price. Firms are earning economic profits 1b. The following information is relevant for an individual firm operating in a perfectly competitive market. Output 30 Variable Cost $2,700 Fixed Cost $130 Marginal Cost $80 Price $80 What will be the firm's production decision in the short-run? Exit...
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...
please complete the LR line 3. Moving from short-run to long-run equilibrium Suppose the competitive market...
please complete the LR line
3. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm Supply PRICE (Dollars per cat toy) AAAAAAAA+ COST...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. ? ? Short-Run Market Individual Firm 10 10 8 8 AC MC Supply 2 1 1 Demand...
Suppose there is a monopolistically competitive market with n identical firms, such that each firm produces the same quantity, q. Further, the market is in the monopolistically competitive long-run e...
Suppose there is a monopolistically competitive market with n identical firms, such that each firm produces the same quantity, q. Further, the market is in the monopolistically competitive long-run equilibrium. You are given the following: Inverse market demand: P 10-Q Total market output: Qnxq Marginal revenue: MR 10n+ 1)xq Total cost: C(q)-5+q Marginal cost: MC 2xq In long-run equilibrium, each firm earns zero economic profit. In long-run equilibrium, the number of firms, n, is and each firm produces units) of...
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...
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...
Suppose all firms in the market are identical. Each firm has a long run total cost...
Suppose all firms in the market are identical. Each firm has a long run total cost curve LTC = 40Q – Q2 + 0.01Q3. The market demand curve is Q = 20,000 – 100P. Find the long run equilibrium quantity per firm, price, and number of firms in the market.
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost...
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C() A2 with fixed cost A=$200.0 and MC(Q)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places.
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the...
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q)= 1002 with MC(Q)=2Q. Suppose also that market demand is given by P(Q)=A-0.04Q, where A-40.0. What is the equilibrium market quantity? No units, no rounding. Your Answer: Your Answer
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...
please complete the LR line
3. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm Supply PRICE (Dollars per cat toy) AAAAAAAA+ COST...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. ? ? Short-Run Market Individual Firm 10 10 8 8 AC MC Supply 2 1 1 Demand...
Suppose there is a monopolistically competitive market with n identical firms, such that each firm produces the same quantity, q. Further, the market is in the monopolistically competitive long-run equilibrium. You are given the following: Inverse market demand: P 10-Q Total market output: Qnxq Marginal revenue: MR 10n+ 1)xq Total cost: C(q)-5+q Marginal cost: MC 2xq In long-run equilibrium, each firm earns zero economic profit. In long-run equilibrium, the number of firms, n, is and each firm produces units) of...
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...
Suppose all firms in the market are identical. Each firm has a long run total cost curve LTC = 40Q – Q2 + 0.01Q3. The market demand curve is Q = 20,000 – 100P. Find the long run equilibrium quantity per firm, price, and number of firms in the market.
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C() A2 with fixed cost A=$200.0 and MC(Q)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places.
Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q)= 1002 with MC(Q)=2Q. Suppose also that market demand is given by P(Q)=A-0.04Q, where A-40.0. What is the equilibrium market quantity? No units, no rounding. Your Answer: Your Answer
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