3. Suppose that each firm in a competitive industry has the following costs:Total Cost: TC = 50+ ¹/29²Marginal Cost: MC = qwhere q is an individual firm's quantity produced. The market demand curve forthis product isDemand: QD = 120 - Pwhere P is the price and Q is the total quantity of the good. Currently, there are 9firms in the market.What is each firm's fixed cost? What is its variable cost? Give the equation forab(C)At q=10, the average-total-costand average total cost at that quantee)f)long run supplycurve.d)Give the equation for the market supply curve for the short run in which thenumber of firms is fixed.What is the equilibrium price and quantity for this market in the short run?In this equilibrium, how much does each firm produce? Calculate each firm'sprofit or loss. Do firms have an incentive to enter or exit?8In the long run with free entry and exit, what is fequilibrium pric

In competitive industry there are many firms producing identical goods that makes them price takers.

3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 +¹/29² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120-P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a What is each firm's fixed cost? What is its variable cost? Give the equation for b) Ata=10, the average-total-cost C) and average total cost at that quande curve. d) Give the equation for the market supply curve for the short run in which the number of firms is fixed. e) f) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Do firms have an incentive to enter or exit? In the long run with free entry and exit, what is uilibrium price

3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 +¹/29² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120-P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a What is each firm's fixed cost? What is its variable cost? Give the equation for b) Ata=10, the average-total-cost C) and average total cost at that quande curve. d) Give the equation for the market supply curve for the short run in which the number of firms is fixed. e) f) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Do firms have an incentive to enter or exit? In the long run with free entry and exit, what is uilibrium price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I need solutions of C, D, E. Thank in advance.
The equations below correspond with questions #1 - 2 below and describe the costs of a profit maximizing, perfectly competitive firm (q = output): Total Costs TC = 300 if q = 0 Total Costs TC = 400 + 10q + 2q2 if q > 0 Marginal Cost MC = 10 + 4q if q> 0 What is the greatest possible profit that this firm would earn if the market price is set at $90? a. $1800 b. $100 c. $400 d. $1400 e. none of the above
3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ ¹/29² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120 - P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a) What is each firm's What is the equilibrium price and quantity for th In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Do firms have an incentive to enter or exit? g) In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h) In this long-run equilibrium, how much does each firm produce? How many firms are in the market? e) f)
67. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s average cost is TC = 300 + Q2 /3, and marginal cost by MC = (2/3)Q. Suppose there are 10 identical firms in the market. What is the market supply? A. 30Q B. 40Q C. 15Q D. 5Q
Question Suppose firm VACC produces in a (perfectly) competitive industry and has the cost function C = 300 + 2q^2 + 15q where q is its output level. a) What are VACC's marginal cost? b) How much output will VACC produce for a price P = 115? c) Compute VACC's profits. d) What is the difference between a firm's profits and producer surplus ? (Can you give an intuition for the concept of producer surplus ?) e) What is VACC's producer surplus ?
Figure 1 shows the short-run cost curves of a toy producer. The market has 1,000 identical producers and Table 1 shows the market demand schedule for toys. At what market prices would the firm shut down temporarily? What is the market price of a toy in long-run equilibrium? How many firms will be in the toy market in the long run? Explain your answer.
Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the Industry, every firm in the industry is Identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per pound) PRICE (Dollars per por 100 90 80 70 60 50 40 30 20 100 10 50 0 80 70 60 50 40 30 20 10 0 The following diagram shows the market demand for copper. 0 Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the Industry supply curve.) Next, use the purple points (diamond symbol) to plat the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run Industry supply curve when there are 40 firms. MC D 0 5 10 ATC H AVC D 0 15…
Suppose you own a firm that manufacturers T-shirt in a competitive market. Your short-run cost of producing T-shirts is given by C(q) = 50 + 3q2 where C is the total cost of production and q is the level of output. What is the shutdown price? Only typed answer please
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1. Assume a perfectly competitive market is represented by the functions Qd=-4p+ 400 and Qs=p. If a firm produces in this market subject to a total cost function of = TC 2Q2+25Q+ 100 determine the amount of revenue, the total cost, profit this firm will make. Note: this is not a realistic TC function, it is used for easy math purposes only)
3. Consider the perfectly competitive markets for bottled water in two cities, A and B. Both have a downward-sloping demand curve and upward-sloping supply curve, and each market is currently in long run equilibrium at the same price. The demand curves are similar, but in city A the supply curve is more price elastic than in city B. a) There's a shock: an accident causes the tap water in the area to become undrinkable. In two diagrams, one for each city, compare the effect on price and quantity traded in the two cities, assuming that a new equilibrium is reached. Explain your diagrams. b) Following on from your answer to a), explain what would happen in the model to the number of suppliers and their profitability, in each of the short run and the long run.