Assume that the market price for bagel services is 42 and store produces 30 units of the bagel. Calculate the profit level. Is the store profit maximizing? Explain your answer. d) Go back to part c) and assume that there are 100 identical bagel store in the market. Determine the market supply curve. (You will obtain total market quantity, Q, as a function of price,P). Are elasticities of individual firm supply and market supply curves different? e) Given the market supply curve you have calculated in part d), now assume that market demand for hairdressers are given by Q=2900-50P. Find the equilibrium price and quantity in the market. Does the market equilibrium correspond to long-run equilibrium? Explain
c) Assume that the market price for bagel services is 42 and store produces 30 units of the bagel. Calculate the
profit level. Is the store profit maximizing? Explain your answer.
d) Go back to part c) and assume that there are 100 identical bagel store in the market. Determine the market supply curve. (You will obtain total market quantity, Q, as a function of price,P). Are elasticities of individual firm supply and market supply curves different?
e) Given the market supply curve you have calculated in part d), now assume that market demand for
hairdressers are given by Q=2900-50P. Find the
equilibrium
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