Consider a market with demand Q=110-p. The market has free entry. Each firm has acost function c) = 50 + 10q. (Hint: assume Cournot competition)a. How many firms will enter?b. What price will each be charging?c. What profit will each firm make, if any?d. What is the consumer surplus?e. What is the total welfare, consisting of the consumer surplus plus total profit of allfirms?f. Calculate total welfare if there was one firm less in the market.g. Explain in 100 words or less why you found that welfare increased or decreasedor did not change.Suppose that new firm with zero fixed cost and marginal cost of 30 wanted to enter themarket described in question 2, would it be able to do so profitably? Explain.

Given information Firm can enter freely in the market Market Demand Q=110-P Cost= 50 +10q

Consider a market with demand Q=110-p. The market has free entry. Each firm has a cost function c(q) = 50 + 10q. (Hint: assume Cournot competition) a. How many firms will enter? b. What price will each be charging? c. What profit will each firm make, if any? d. What is the consumer surplus? e. What is the total welfare, consisting of the consumer surplus plus total profit of al firms? f. Calculate total welfare if there was one firm less in the market. g. Explain in 100 words or less why you found that welfare increased or decreased or did not change.

Consider a market with demand Q=110-p. The market has free entry. Each firm has a cost function c(q) = 50 + 10q. (Hint: assume Cournot competition) a. How many firms will enter? b. What price will each be charging? c. What profit will each firm make, if any? d. What is the consumer surplus? e. What is the total welfare, consisting of the consumer surplus plus total profit of al firms? f. Calculate total welfare if there was one firm less in the market. g. Explain in 100 words or less why you found that welfare increased or decreased or did not change.

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

Please slove the attached qustion
Help me with this math please
. In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What price should the firm charge? Why?
Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. PRICE (Dollars per pound) 100 90 80 70 80 50 40 30 20 10 0 0 125 250 375 500 825 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Demand Because you know that competitive firms earn Supply (10 firms) True Supply (15 firms) If there were 10 firms in this market, the short-run equilibrium price of rhodium would be $ would . Therefore, in the long run, firms would False Supply (20 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…
help with two questions attached
Brand X is one of many firms in a competitive industry where each firm has a constant marginal cost of 2 dollars per unit of output. If marginal cost for Brand X rises to 4 dollars per unit and marginal costs of all other firms in the industry stay constant, by how much does the price in the industry increase? a. 2 dollars b. 1 dollar c. 0 dollar d. 2/n, where n is the number of firms in the industry e. None of the above.
Question 8 (1 point) Listen Junior's Sporting Goods sells camping equipment and outdoor gear. The company is willing to sell a particular fishing pole for as little as $55. Its main competitor is Sporty Gear, which is willing to sell the fishing pole for as little as $35. The current market price of that type of fishing pole is $75. What is the total producer surplus for the two firms? Your Answer: Answer Question 9 (1 point) Listen Karen can make 1 jackets or 17 ties in one day working at the clothing factory. Joe can make 8 jackets or 32 ties in one day working at the clothing factory. What is Joe's opportunity cost of producing 1 tie? Round your answer to one decimal place. Be sure to enter the correct units for what they are giving up. Your Answer: Answer units
Answer ASAP
Proper answer please
2