19-22. A (typical) firm in a perfectly competitive constant cost industry has total costs in theshort run given by:TC 588 +8q+3q², 9 2FC=396where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of$396 (already included in the TC equation above). The TC equation generates minimum averagecosts of $92 (per unit) at q = 14. Questions 19 through 22 concern this firm and this industry.19. You are told that in the short run there are 400 firms, including this one, in the industry, allwith the same cost curves described above. Suppose that the demand curve facing the industry isgiven by the equation P=908.135Q where P is the price per unit and Q is the number ofunits demanded per day. The equilibrium price in this industry in the short run is:F) $105A) $86G) $108B) $92H) $110A) $34G) $71C) $95I) $11120. This profit earned by each firm in this industry in this short run equilibrium is:A) $69B) $72F) $99G) $105H) $11021. This firm's shut down price is:C) $53I) $89A) $86G) $108B) $47H) $83C) $87I) $111D) $98J) none of the aboveE) $101C) $95I) $111D) $93E) $96J) none of the aboveD) $56E) $65J) none of the above22. We are now in a new short-run situation with 400 firms in the industry and the same costcurves described at the beginning of this set of questions. Now, imagine that the industrydemand curve falls to P = 268 - .035Q. When the industry settles down into a new short-runequilibrium, what will be the new equilibrium price?B) $92D) $98F) $105H) $110F) $68E) $101J) none of the above

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A (typical) firm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=588 +8q+3q², FC 396 9>2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $396 (already included in the TC equation above). The TC equation generates minimum average costs of $92 (per unit) at q = 14. Questions 19 through 22 concern this firm and this industry. 19. You are told that in the short run there are 400 firms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P=908-135Q where P is the price per unit and Q is the number of The equilibrium price in this industry in the short run is: units demanded per day. F) $105 A) $86 G) $108 B) $92 H) $110 C) $95 I) $111 D) $98 J) none of the above 20. This profit earned by each firm in this industry in this E) $101 1'1

A (typical) firm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=588 +8q+3q², FC 396 9>2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $396 (already included in the TC equation above). The TC equation generates minimum average costs of $92 (per unit) at q = 14. Questions 19 through 22 concern this firm and this industry. 19. You are told that in the short run there are 400 firms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P=908-135Q where P is the price per unit and Q is the number of The equilibrium price in this industry in the short run is: units demanded per day. F) $105 A) $86 G) $108 B) $92 H) $110 C) $95 I) $111 D) $98 J) none of the above 20. This profit earned by each firm in this industry in this E) $101 1'1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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