Hello! I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me correct and resolve it. Please refer to the given pictures below for the questions and answers. | After verifying the given answers shown in the subsequent picture, PLEASE ANSWER LETTER D. | D. At this equilibrium market price, calculate the level of output and profit that each firm produces in the short- run. With this information, comment on the potential entry/exit of firms in this industry in the long-run. | NOTE: Type only your answers. Please do not handwritten your answers. 2. A firm sells its output in aPCM. The firm's short-run costfunctiongivenSC = 9'-0.29 + 4g + 10.a. Derive the short-run supplyfunction of a typical firm inthis industry.isbyb. Assuming that there are 100identical firms in thisindustry, derive the short-run market supply function.c. If currently the marketdemand for these firm'sproduct is Q =200p", determine the short-run equilibrium marketprice.= 8,000 -%3Dd. At this equilibrium marketprice, calculate the level ofoutput and profit that eachfirm produces in the short-run. With this information,comment on the potentialentry/exit of firms in thisindustry in the long-run. Given;Short-run cost function' SC = g - 0. 2q7 + 4q+!0a) Short-run supply function:-In short-run;Supply=MCTherefore;Supply equation; P = - 0. 4q + 4100Step 2b) Market supply:-P =:- 0. 49 + 4100100P = q – 40q + 400100P = q- 2020 + 20q+ 400100P = q - 20q – 20g + 400100P = (g – 20)210 F10P + 20= q - 209 =Market supply curve:-Qs = 100 × q= 100 x (10VP + 20)= 1000 VP + 2000Step 3c) At equilibrium;Demand=SupplyTherefore;8000 – 200P/2 = 1000 VP + 20001000 VP + 200 VP = 8000 – 20001200 VP = 6000VP = 5P = (5)²P = 25

In this question:- The short run cost function=q3300-0.2q2+4q+10 Here the short run supply curve…

Answered: A firm sells its output in a PCM. The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hello! I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me correct and resolve it. Please refer to the given pictures below for the questions and answers. | After verifying the given answers shown in the subsequent picture, PLEASE ANSWER LETTER D. | D. At this equilibrium market price, calculate the level of output and profit that each firm produces in the short- run. With this information, comment on the potential entry/exit of firms in this industry in the long-run. | NOTE: Type only your answers. Please do not handwritten your answers.

2. A firm sells its output in a
PCM. The firm's short-run cost
function
given
SC = 9'-0.29 + 4g + 10.
a. Derive the short-run supply
function of a typical firm in
this industry.
is
by
b. Assuming that there are 100
identical firms in this
industry, derive the short-
run market supply function.
c. If currently the market
demand for these firm's
product is Q =
200p", determine the short-
run equilibrium market
price.
= 8,000 -
%3D
d. At this equilibrium market
price, calculate the level of
output and profit that each
firm produces in the short-
run. With this information,
comment on the potential
entry/exit of firms in this
industry in the long-run.

Given;
Short-run cost function' SC = g - 0. 2q7 + 4q+!0
a) Short-run supply function:-
In short-run;
Supply=MC
Therefore;
Supply equation; P = - 0. 4q + 4
100
Step 2
b) Market supply:-
P =
:- 0. 49 + 4
100
100P = q – 40q + 400
100P = q
- 20
20 + 20
q+ 400
100P = q - 20q – 20g + 400
100P = (g – 20)2
10 F
10P + 20
= q - 20
9 =
Market supply curve:-
Qs = 100 × q
= 100 x (10VP + 20)
= 1000 VP + 2000
Step 3
c) At equilibrium;
Demand=Supply
Therefore;
8000 – 200P/2 = 1000 VP + 2000
1000 VP + 200 VP = 8000 – 2000
1200 VP = 6000
VP = 5
P = (5)²
P = 25

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