Answered: An industry face the demand curve…

An industry face the demand curve Q=400-4P, where each firm produces an indentical good at a constant marginal cost of $10. The Bertrand equilibrium market quantity is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Tyco International has complete control over the plastic hangar market. Suppose the inverse demand for hangars is given by: P(Q) = 3 – Q/16000. Suppose that the total cost is given by: TC(Q) = 100 + Q What is the equilibrium price and quantity of hangars in the market if the market is competitive?
If the market demand curve is Q = 100−p, what is the market price elasticity of demand? If the supply curve of individual firms is q = p and there are 50 identical firms, draw the residual demand facing any one firm. What is the residual demand elasticity facing one firm at the competitive equilibrium.
Suppose a perfectly competitive market has firms with total cost given by c(y) = 3y2+ 10. a) What is the individual firm’s profit-maximizing output? b) If there are m firms, what is the industry supply function? c) Let the industry demand be X(p) =a−bp, where a and b are positive constants. Find theequilibrium price in the market. What is the equilibrium quantity sold?
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In a market, in the long run (free entry/exit), firms share a production function which results in costs following C(q)=0.1q3- 4q2 + 60q , where is the quantity produced by each firm Given a market demand of QD(P)=1,500 - 10P A) What is the equilibrium price? B) What is the market quantity supplied/demanded? C) How many firms will supply in this market, and how many units would each firm supply?
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Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the Marley market is given as QM=110-PM , and the demand function of the Paradis market is QP=30-PP . Wakanda’s total cost in producing vibranium is given as TC=100+10Q , where represents a ton of vibranium. 1. Calculate the equilibrium price and output for each market. 2. How much is the total revenue in each market?
Consider a perfectly competitive market where the demand for the good is given by Q-769-5p, where Q denotes the quantity demanded at price p. On the supply side, the good can be produced by identical firms. The total cost of the industry as a function of total output, Q, is given by C(Q) = 5 Q What is the (long run) equilibrium quantity in this market? (As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number.)