1. A competitive market has two types of producers. The first type has cost C₁ (y) = 10y + y². The second type has cost C₂ (y) = 5y². There are 100 of each type. (a) Find the individual supply curve for each producer. (b) How high must the price be to get both producers to supply a positive amount in the market? (c) Find the market supply function. (d) Find the competitive equilibrium if demand is D (p) = 100 – 10p. (e) Find the competitive equilibrium if demand is D (p) = 6500 - 10p.

1. A competitive market has two types of producers. The first type has cost C₁ (y) = 10y + y². The second type has cost C₂ (y) = 5y². There are 100 of each type. (a) Find the individual supply curve for each producer. (b) How high must the price be to get both producers to supply a positive amount in the market? (c) Find the market supply function. (d) Find the competitive equilibrium if demand is D (p) = 100 – 10p. (e) Find the competitive equilibrium if demand is D (p) = 6500 - 10p.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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