2. A competitive market is made up of 100 identical firms. Eachfirm has a short-run marginal cost function as follows:MC= 5 + 0.5Q where Q represents units of output per unit oftime. The firm's average variable cost curve intersects themarginal cost at a vertical distance of 10 above the horizontalaxis.a. Determine the market short-run supply curve.b. Calculate the price that would make 2,000 units forthcomingper time period.

A perfectly competitive firm produces at P=MC in short run. P=MC is the short run supply for an…

Answered: 2. A competitive market is made up of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a perfectly competitive market where all firms produce using the same technology. In the long run the equilibrium price equals (Need help? Read chapter 4.6 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part2/ch4/s6) the Fixed Cost. the minimum Marginal Cost. the minimum Average Total Cost. the maximum Average Variable Cost. None of these.
d, e, & f Consider a perfectly competitive industry where the typical firm has long run Total Cost TCLR = q2 + 2q + 196.a) Find the minimum efficient scale of the typical firm. MES = 30 b) Find the long run equilibrium price. P = 30 Suppose demand in this industry is Qd = 1,700 – 10P.c) Find the long run equilibrium quantity and how many firms can survive in this industry in the long run. Equilibrium Quantity = 1400 and # of firms = 100 Suppose government introduces a $10 per unit tax collected from sellers.d) The tax alters the long run total cost of the typical firm. In which way?e) Does the tax affect the minimum efficient scale of the typical firm?f) In the long run, by how much will the equilibrium price increase in response to the tax?
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Glowglobes are produced by identical firms in a perfectly competitive market. There are 19 firms in the market. Each firm's Total Cost function is TC=396+2q+q^2 and Marginal Cost function is MC=2+2q. Market demand is Q=484-P. What is the profit earned by each firm in the short-run?
in a perfectly competitive market with a constant cost industry, there are currently 100 identical firms, each with the total cost function TC(Q) = Q^2 + 4Q + 36. The market demand is Q = 1800 – 50p. a. What is the price at the short-run equilibrium? What is the net profit/loss of each firm at this price? b. In the long run, how many firms will enter into /exit from the market?
Answer both parts a and b please. Part a) True or False: In a competetive market, a firm's short run supply curve is sloping upwards due to diminishing returns of the variable input. Explain why. Part b) Are long run supply curves always upward sloping? Explain why or why not with a graph.
In the US cotton market, each farm having the cost function c(q)=0.5q^(2)+ 10 q+162 where q is the quantity of cotton in tons produced by each farm. The market demand curve is given by Q^(d)=10,400-50 p. Suppose the government gives each farm a subsidy of $8 per ton. Calculate the long-run market price assume the market is perfect competition. $20 $25 $30 $35 With all steps clearly
A firm in a perfectly competitive market has a total cost given by TC = 50 + 10q + 2q2. The market price is $50. Which statement is true? A) The firm supplies q = 5 units in the short run, making a loss. B) The firm supplies q = 10 units and makes zero economic profit. C) The firm supplies q = 10 and makes an economic profit. D) The firm supplies q = 5 units in the short run and makes an economic profit. E) The firm supplies q = 15 units in the short run and maximises the revenue.
Give an explanation to the answer and ensure all the steps are shown.
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C(Q) = 50 + 10Q + 2Q2. [NOTE à MC(Q) = 10+4Q] a) How much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm’s short run profits?
Under conditions of perfect or pure competition, or close to those conditions, producers (firms) are what are called “price takers”. This means that the price for the product that they are selling is determined by the market. No matter how little or how much product they supply, they can sell all they want at that price. If they were to price their product higher, they will sell zero. Which of the following is true? The price is equal to marginal revenue but not average revenue The price is equal to marginal revenue and average revenue The price is equal to average revenue but is not equal to marginal revenue The price is above both marginal revenue and average revenue
Multiplying one firm’s short-run supply function to the number of firms in a specified industry will give you the short-run market supply function. True or false.

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