(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is cj(yj) = yi2. There are 100 identical tech firms which all behave competitively.What is the individual supply of technological goods and services? What is the market supply of technological goods and services?Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?How much is the total surplus of this economy? Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation? Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why? Tech firms produce goods and services from labor and energy. The total cost in dollars to produce $ y $ amount of goods and services for each firm $ j $ is $ c_j(y_j) = y_j^2 $. There are 100 identical tech firms which all behave competitively.**A.** What is the individual supply of technological goods and services?**B.** What is the market supply of technological goods and services?**C.** Suppose the demand curve for these goods is $ D(p) = 200 - 50p $. What is the equilibrium price and quantity sold?**D.** How much is the total surplus of this economy?**E.** Now suppose that the industry makes a one-time investment for $ \$K $ amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation?**F.** Is it reasonable to assume that in the long-run $ \$K $ is exactly equal to the size of the industry profits? Why?

A perfectly competitive firm is a firm which operates in a perfectly competitive market. And firm…

Answered: ech firms produce goods and services…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)

Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is c_j(y_j) = y_i². There are 100 identical tech firms which all behave competitively.

What is the individual supply of technological goods and services?
What is the market supply of technological goods and services?
Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?
How much is the total surplus of this economy?
Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation?
Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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