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Assume the market for chips is perfectly competitive.  The market supply and demand curves for chips are given as follows:                       supply curve:  P = 0.000002Q    demand curve: P = 11 - 0.00002Q                The short run marginal cost curve for a typical chips factory is:  MC = 0.1 + 0.0009Q   Determine the equilibrium price for chips.   Determine the profit maximizing short run equilibrium level of output for a chips factory.   Assuming that all of the chips factories are identical, how many chips factories are producing chips?

Assume the market for chips is perfectly competitive.  The market supply and demand curves for chips are given as follows:                       supply curve:  P = 0.000002Q    demand curve: P = 11 - 0.00002Q                The short run marginal cost curve for a typical chips factory is:  MC = 0.1 + 0.0009Q   Determine the equilibrium price for chips.   Determine the profit maximizing short run equilibrium level of output for a chips factory.   Assuming that all of the chips factories are identical, how many chips factories are producing chips?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume the market for chips is perfectly competitive.  The market supply and demand curves for chips are given as follows:                      

supply curve:  P = 0.000002Q    demand curve: P = 11 - 0.00002Q               

The short run marginal cost curve for a typical chips factory is:  MC = 0.1 + 0.0009Q

 

  1. Determine the equilibrium price for chips.  
  2. Determine the profit maximizing short run equilibrium level of output for a chips factory.  
  3. Assuming that all of the chips factories are identical, how many chips factories are producing chips? 
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