2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TCA(@) =2+ 4q + 2g TC (4) = 3+9+5 %3D (a) Derive the short-run supply curve for each firm type. (b) What is the short-run market supply, if there are 8 Type A firms, and 6 Type B firms? (c) What is total quantity produced when p-5? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that pa5 and that there are 8 Type A firms and 6 Type B firms.
2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TCA(@) =2+ 4q + 2g TC (4) = 3+9+5 %3D (a) Derive the short-run supply curve for each firm type. (b) What is the short-run market supply, if there are 8 Type A firms, and 6 Type B firms? (c) What is total quantity produced when p-5? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that pa5 and that there are 8 Type A firms and 6 Type B firms.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 10PA
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B, C and D. Please provide explanation.
![2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost
functions
TCA(4) = 2+ 4q + 2g
TC (4) = 3+q+
3
(a) Derive the short-run supply curve for each firm type.
(b) What is the short-run market supply, if there are 8 Type A firms, and 6 Type B firms?
(c) What is total quantity produced when p=5?
(d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume
again that p==5 and that there are 8 Type A firms and 6 Type B firms.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7719f6b5-e0a2-4ce4-b438-39cd0e0ff219%2F3d7143df-95ba-45c1-88bb-ad5ac01cab62%2Futrr759_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost
functions
TCA(4) = 2+ 4q + 2g
TC (4) = 3+q+
3
(a) Derive the short-run supply curve for each firm type.
(b) What is the short-run market supply, if there are 8 Type A firms, and 6 Type B firms?
(c) What is total quantity produced when p=5?
(d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume
again that p==5 and that there are 8 Type A firms and 6 Type B firms.
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