As in the previous problem, suppose Gi-hun's cost function is C(Q) = 32+2Q?, and that Gi-hun is one of many chauffeurs with identical costs in a competitive industry. Suppose the market demand curve for rides is Qd=1000-P. %3| a. Find the individual seller's supply curve. b. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve.

As in the previous problem, suppose Gi-hun's cost function is C(Q) = 32+2Q?, and that Gi-hun is one of many chauffeurs with identical costs in a competitive industry. Suppose the market demand curve for rides is Qd=1000-P. %3| a. Find the individual seller's supply curve. b. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve.

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 firm produces a good at a marginal cost of $20 per unit and sells it for $40 per unit. It currently has an inventory of 500 units, and P = 30 - .05Q describes its current demand curve. In these circumstances, what is the firm’s optimal price?
Flora sells flowers in a perfectly competitive market. These cost functions represent her daily cost functions. TC = 100 + 0.50 + .2502 MC = 0.5 + 0.50 The current price is $9.50 Determine the profit/loss for Flora. Round to the penny. Suppose this is Flora's daily cost functions. This (profit/loss) value is expected to be constant for the next two weeks.What advice you would give her for these next two weeks related to running her business? Explain why.
Suppose market demand for mobile operators is expressed by Q=90-3P where Q is measured by calls in hours. There are three firms that supply the market: TRCell,VFone, and Avea .Avea provide hourly calls at a unit cost of 20$, where as TRCell& VFone has a unit cost equal to 10 Suppose firms are competing in price( no capacity constraints ) a) What is the market price? Why? b) How much does each firm sell in Bertrand equilibrium? c) What are firms’ profits? Is there any way for all firms to get higher profits
Consider a company that operates in a competitive market, with a typical set of cost curves (Marginal Cost, Average Variable Cost, Average Fixed Cost and Average Cost with typical formats of Microeconomics theory). Consider further that Marginal Costs coincide with Average Total Costs when the firm's output is 200 units of output, at a market price of 50. If market prices fall to 40, the company will produce 180 units of product to maximize its profit. If at this point the Average Fixed Costs per unit of output equals 27 per unit of output, what are your recommendations for this company in the short term? And in the long run?
Consider a perfectly competitive market in which each firm's short-run total cost function is C= 25+ 11q+q 2, where q is the number of units of output produced. The associated marginal cost curve is MC = 11+2q. In the short run each fim is willing to supply a positive amount of output at any price above $____. (Enter your response as a real number rounded to two decimal places.)
A market has N=35 firms each with identical costs C(q)=1q2+70. Demand is QD=200-5p. What will be the short-run equilibrium price? Round to the nearest cent (0.01)
A) Find the price function and then the TR function. B) Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. C) What positive value of Q will maximize total profit? Remember: setting MR = MC and solving for Q will give you the Q that maximizes total profit. The value of Q you get should not be zero or negative.
Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of jackfruit and quantity of 75 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as jackfruit could decrease your expected lifespan by 5 years. The publication is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. 2 1 10 9 8 Supply Demand 0 0 + 15 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) In the long run, some firms will respond by + 1 } Demand Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news. 2 1 10 9 Supply Demand B…
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. The market price is $26. Instructions: Use the tool provided (Pt. A) to identify the profit-maximizing output. Then use the tool "Profit" to draw the area of profit (or loss) that occurs at this level of output. Position this rectangle by dragging on the vertices. Price/Cost ($) 50 r Tools MC 40 Pt. A Profit ATC 30 AVC 20 10 10 20 30 40 50 Quantity Instructions: Round your answer to the nearest whole number. Use a negative sign if necessary. At the profit-maximizing level of output, average total cost is $ and profit is $
A firm faces the demand curve: P = 3,591 - 19Q. What is the firm's revenue maximizing price? Enter as a value (round to two decimal places if necessary).
10. Given a qmes = 100 and a minimum long-run average total cost of $2. (a) If the quantity demanded at p = $2 is 10, 000. How many firms can enter the market and at least break-even? (b) If technology gets better and reduces the minimum long-run average total cost of $1 and increases qmes = 9,000. At p = $1 the quantity demanded is 14, 000. How many firms || can enter the market and at least break-even? What market structure will describe this market better, perfect competition or monopoly?
Manager Mutua comes to you as a consultant armed with the demand function of his firm and wishes to know the quantity that the firm can produce in order to maximize revenue. His firm’s demand function is P=1000 – 1.5Q.