Assume the market for tortillas is perfectly competitive. The market supply and demand curves for tortillas are given as follows: Supply curve: P = 5Q Demand curve: P = 120 - 10Q The short run marginal cost curve for a typical tortilla factory is: MC = 20q Assuming all tortilla factories are identical, calculate the following: Equilibrium price for tortillas: __1__ Profit maximizing short run equilibrium level of output for a tortilla factory: __2__ Given profit maximizing output as above, a tortilla factory is: __3__ Total number of tortilla factories: __4__ Producer surplus of a tortilla factory: __5__
Assume the market for tortillas is perfectly competitive. The market supply and demand curves for tortillas are given as follows: Supply curve: P = 5Q Demand curve: P = 120 - 10Q The short run marginal cost curve for a typical tortilla factory is: MC = 20q Assuming all tortilla factories are identical, calculate the following: Equilibrium price for tortillas: __1__ Profit maximizing short run equilibrium level of output for a tortilla factory: __2__ Given profit maximizing output as above, a tortilla factory is: __3__ Total number of tortilla factories: __4__ Producer surplus of a tortilla factory: __5__
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume the market for tortillas is
Supply curve: P = 5Q Demand curve: P = 120 - 10Q The short run marginal cost curve for a typical tortilla factory is: MC = 20q
Assuming all tortilla factories are identical, calculate the following:
equilibrium level of output for a tortilla factory: __2__ Given profit maximizing output as above, a tortilla factory is: __3__ Total
number of tortilla factories: __4__
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