2) A perfectly competitive market has demand given by Qp = 4850 – 70P. There are four firms in this market, and each firm has a different cost structure as shown below: TC (q) = 5000 + 4q + 0.02q2 MC(q) = 4+0.04q Client 9 & Co. TC(q) = 6000 + q + 0.025q? MC(q) = 1+ 0.05q BTVS Inc The Fred Firm TC(q) = 5000 + 29 + 0.02q? MC(q) = 2 + 0.04q TC(q) = 15000 + 5q + 0.005q? MC(q) = 5 + 0.01q OTT (a) What is the market price and market quantity? Hint: Start by determining the individual supply for each firm, and then add them to get the market supply (b) How many units does each firm produce, and how much profit does cach firm make? (c) In the long-run competitive equilibrium, what is the market price and market quantity? (d) In the long-run competitive equilibrium, how many units does cach firm produce, and how much profit does cach firm make?

2) A perfectly competitive market has demand given by Qp = 4850 – 70P. There are four firms in this market, and each firm has a different cost structure as shown below: TC (q) = 5000 + 4q + 0.02q2 MC(q) = 4+0.04q Client 9 & Co. TC(q) = 6000 + q + 0.025q? MC(q) = 1+ 0.05q BTVS Inc The Fred Firm TC(q) = 5000 + 29 + 0.02q? MC(q) = 2 + 0.04q TC(q) = 15000 + 5q + 0.005q? MC(q) = 5 + 0.01q OTT (a) What is the market price and market quantity? Hint: Start by determining the individual supply for each firm, and then add them to get the market supply (b) How many units does each firm produce, and how much profit does cach firm make? (c) In the long-run competitive equilibrium, what is the market price and market quantity? (d) In the long-run competitive equilibrium, how many units does cach firm produce, and how much profit does cach firm make?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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