Answered: 1) There are 1000 pear producers that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1) There are 1000 pear producers that have identical cost functions, where q is the number of crates of pear produced. The producers operate in a perfectly competitive market.

The supply curve of each producer is _______

The total supply curve for the market is _______

At a price of 100, the elasticity of supply for the market is _______ , meaning that supply is _______.

(see image for answer options)

2) A firm can sell its output at the price p=10 per unit. The firm’s cost function is C=16+q²

To maximize its profit, the firm chooses to produce q=___________. The profit of this firm is $_____________

q=0
q=10P
q=20p
Q(P) = 0
Q(P) = 10,000P
Q(P) = 20,000P
0
1
infinite
unit elastic
inelastic
elastic

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