A firm operates in three markets: Nur-Sultan, Karaganda, and Almaty. Each market can be described by the demand equations: qN = 200, 000 –- 1.5P q = 200, 000 – 4P af = 200, 000 – 6P The firm has the following cost structure: Total Cost: TC(q) = 8000 + 4300q + 300q² Marginal Cost: MC(q) = 4300 + 600q. Suppose that there are 9400 identical firms in the market. As usual, in all your calculations and answers, use a precision of 4 decimals.
A firm operates in three markets: Nur-Sultan, Karaganda, and Almaty. Each market can be described by the demand equations: qN = 200, 000 –- 1.5P q = 200, 000 – 4P af = 200, 000 – 6P The firm has the following cost structure: Total Cost: TC(q) = 8000 + 4300q + 300q² Marginal Cost: MC(q) = 4300 + 600q. Suppose that there are 9400 identical firms in the market. As usual, in all your calculations and answers, use a precision of 4 decimals.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A firm operates in three markets: Nur-Sultan, Karaganda, and
Almaty. Each market can be described by the demand equations:
q = 200, 000 – 1.5P
q = 200, 000 – 4P
qf = 200, 000 – 6P
%3|
The firm has the following cost structure:
Total Cost: TC(q) = 8000 + 4300q + 300q²
Marginal Cost: MC(q) = 4300 + 600q.
Suppose that there are 9400 identical firms in the market.
As usual, in all your calculations and answers, use a precision of 4
decimals.
Transcribed Image Text:What is the firm's shutdown price?
What is the market equilibrium price?
What is the market equilibrium quantity?
Will firms enter or exit the market?
What is the long-run equilibrium market price?
What is the long-run equilibrium market quantity?
How many firms are there in the long-run? Round your answer to
the nearest larger whole number.
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