A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price.

A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price.

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

A competitive firm has the short-run cost function C(y) = 4y3 – 2y? + 10y + 2. At what price will the firm agree to produce in the short-run? What is the shutdown condition for this firm?
Assume perfect competition: Firm cost equation: TC = 49 - 4Q + Q² Market demand: Q = 530 - 4P Solve for how many firms will serve the market in the long-run.
A competitive firm's total cost is TC(Q)=2Q2+3Q+34 when the output level is Q. Accordingly, its marginal cost is MC(Q)=2*2*Q+3. The market price is P=72. You are told that the firm will not shut down in the short run. Please find the revenue of the firm at its optimal output level.
Good Grains is one of 100 identical firms in the perfectly competitive wheat market. Each firm operates in the short-run with a total cost of: C(Q) = 2Q² + Q + 32. They have a marginal cost of MC 4Q + 1, an average total cost of AC = 2Q +1+ 32 and an | average variable cost of AVC = 2Q + 1. Good Grains will operate at a loss for prices greater than $ but less than $ (Round answers to two decimals if necessary.) Suppose the current market price for a bushel of wheat is P = $9. How many bushels will Good Grains supply? O 2.5 O 2 О 4 О5 When price is high enough generate positive production, the short-run market supply curve for wheat is given by Qlarket (This may be a function of P.)
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm's total cost is given by the equation TC = 100+ q² + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 - 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation P = 100+ Q. What is the equilibrium price in this market given this information? a) What is the equilibrium price in this market given this information b) What is the firm's profit-maximizing level of production?
A typical firm in long-run equilibrium in an industry with identical firms has a cost function given by C(q) = 10,000+ 2q² What is the equilibrium price? The equilibrium price is $ (Enter your response rounded to two decimal places.) A
The first graph depicts the industry supply and demand for yoga classes. Assume that the market is initially in equilibrium at the intersection of lines D and S. The second graph is the cost information for a single firm in this perfectly competitive industry. Assume there is an increase in the industry demand for yoga classes and the industry demand curve moves from D to D1. Furthermore, assume this is a constant cost industry. Shift the supply (S) curve to the correct positions to reflect long-run equilibrium in this constant cost industry. Next, use the interactive line to trace out the long-run industry supply curve (LRIS) for this industry. Price per class Yoga Industry Supply and Demand Short-run marginal cost Long-run average cost Short-run average cost S Price=Marginal revenue DRIS D1 Quantity of classes Quantity of classes Price ($)
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?
Assume a competitive firm faces a market price of $150, a cost curve of: C + 6q + 1,500, and a marginal cost of: MC = q² + 6. What is the firm's profit maximizing output level? units. (round your answer to two decimal places)
Problem 2: Suppose in a perfectly competitive industry that the market supply and demand forces combine to produce a short-run equilibrium price of $70. Suppose further that a single firm in this industry has a weekly total cost function expressed by the equation: (b) TC=200+50q - 6q² + (1/3)q³. What is this firm's profit maximizing level of output? What are its profits? At what level of (q) will this firm shut down its operations? At what level of (q) will the firm break even.
Suppose that a price-taking firm in a perfectly competitive market has the following cost function: C(Q) = A + 0.5Q² where A $100.0 are fixed cost. Also, MC(Q)=Q. All fixed cost are sunk. What is the firm's shut down price? No units, no rounding. Your Answer: Your Answer
In a perfectly competitive market with constant cost industry and with the market demand Q=1,800-10p, each of the identical firms operating in it has a total cost function TC(q) = 100 + 4q2 . How many firms are there in the market in long run equilibrium?