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

See similar textbooks

Similar questions

help
I need this in words Not handwritten or no pic
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
Give an explanation to the answer and ensure all the steps are shown.
1. Consider the case of a perfectly competitive industry with n identical firms. Each firm's total cost function is given by Ci(q) = 100 + 10q+q² The demand for the good is given by Qd = 400 - 4p a) Find the(long-run)equilibrium in the market. b) Calculate the equilibrium total surplus or welfare. 9 i = 1, ..., n
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?
a) In this industry, what is the short run shut-down price? b) What is the short run supply function at the typical Vietnamese restaurant? c) Sum across restaurants and find the short-run market supply of Vietnamese meals in NYC
Answer options: 0, 5, 7, 10, 15, 20, 25, Other
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…
Glowglobes are produced by identical firms in a perfectly competitivemarket. Each firm's Total Cost function is TC=404+19q+q^2 and MarginalCost function is MC=19+2q. Market demand is Q=316-P. If the market price is $86, what are the revenues each firm earns?
Solve it correctly
There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $10 and the variable cost is 3q. Market demand function is given by Q = 1200 - 70P Find the equilibrium price in the market . 8 12 10 7 There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $10 and the variable cost is 3q. Market demand function is given by Q = 1200 - 70P Find the equilibrium price in the market . 8 12 10 7