9.3. Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short- run total cost curve of the form: 1 q³ + 0.2q² + 4q + 10 300 STC and marginal cost is given by SMC = .01q² +.4q + 4 a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P). b. Calculate the industry supply curve for the 100 firms in this industry. c. Suppose Q = -200P + 8,000. What will be the shortrun equilibrium price-quantity combination? d. Suppose everyone starts writing more research papers and the new market demand is given by Q = - 200P + 11,200. What is the new short-run price-quantity equilibrium? market demand is given by How much profit does each firm make?

9.3. Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short- run total cost curve of the form: 1 q³ + 0.2q² + 4q + 10 300 STC and marginal cost is given by SMC = .01q² +.4q + 4 a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P). b. Calculate the industry supply curve for the 100 firms in this industry. c. Suppose Q = -200P + 8,000. What will be the shortrun equilibrium price-quantity combination? d. Suppose everyone starts writing more research papers and the new market demand is given by Q = - 200P + 11,200. What is the new short-run price-quantity equilibrium? market demand is given by How much profit does each 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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