Suppose a firm's total variable costs are given by TVC (9) = 2-q2 , and it has a fixed cost of 1,180 of which 800 is avoaidable. We want to find the firm's supply. Let's first find the minimum of the average variable and avoidable costs. This will allow us to find the price below which the firm will not produce. Remember for decisionmaking only the avoidable fixed cost matter. This occurs are q 20 The price at which the firm just breaks even is P - 80 The firm's supply, then is qe 国國or Ps80 国岛and P/4 团团or P> 80 Please give the supply in terms of upper case P and please use fractions. Suppose a market for a constant cost industry is in Very Long Run equilibrium. The market demand is given by Q= 3,776 - 2- P. Each firm in the market has total variable costs given by TVC(9) = 4-g, and it has an avoidable fixed cost of 1,024. The question we want to answer is: What is the Very Long Run equilibrium for this market? First let's find tho minimum of the average variable and avoidablo costs for each firm. This will allow us to find the price bolow which the firm will not produce. This occurs are gm The price at which each firm just breaks even is pe Each firm's supply, then is g = for PS 固國 and for P> Please give your answer in terms of P and use fractions rather than decimals In the Very Long Run the market price will be the equilibrium quantity will be each firm will produce 国 and the equilibrium number of firms will be 固助 Assume a perfectly competitive industry. The demand curve is Qp = 180 – 3 P and the supply curve is Qs = -16+4P. Find producer and consumer surplus. PS = $ 1152 国画 CS =$ 1536 Suppose that a that a subsidy of $4 per unit is granted to consumers. Find the benefit per unit from the subsidy on consumers and firms, as well as any deadweight loss. (Please round to 2 decimal places) Producer's Bene fit per unit = $ Number Consumer's Benefit per unit = $ Number DWL = $ Number Please answer all 3 questions and show calculations. Thank you in advance
Suppose a firm's total variable costs are given by TVC (9) = 2-q2 , and it has a fixed cost of 1,180 of which 800 is avoaidable. We want to find the firm's supply. Let's first find the minimum of the average variable and avoidable costs. This will allow us to find the price below which the firm will not produce. Remember for decisionmaking only the avoidable fixed cost matter. This occurs are q 20 The price at which the firm just breaks even is P - 80 The firm's supply, then is qe 国國or Ps80 国岛and P/4 团团or P> 80 Please give the supply in terms of upper case P and please use fractions. Suppose a market for a constant cost industry is in Very Long Run equilibrium. The market demand is given by Q= 3,776 - 2- P. Each firm in the market has total variable costs given by TVC(9) = 4-g, and it has an avoidable fixed cost of 1,024. The question we want to answer is: What is the Very Long Run equilibrium for this market? First let's find tho minimum of the average variable and avoidablo costs for each firm. This will allow us to find the price bolow which the firm will not produce. This occurs are gm The price at which each firm just breaks even is pe Each firm's supply, then is g = for PS 固國 and for P> Please give your answer in terms of P and use fractions rather than decimals In the Very Long Run the market price will be the equilibrium quantity will be each firm will produce 国 and the equilibrium number of firms will be 固助 Assume a perfectly competitive industry. The demand curve is Qp = 180 – 3 P and the supply curve is Qs = -16+4P. Find producer and consumer surplus. PS = $ 1152 国画 CS =$ 1536 Suppose that a that a subsidy of $4 per unit is granted to consumers. Find the benefit per unit from the subsidy on consumers and firms, as well as any deadweight loss. (Please round to 2 decimal places) Producer's Bene fit per unit = $ Number Consumer's Benefit per unit = $ Number DWL = $ Number Please answer all 3 questions and show calculations. Thank you in advance
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose a firm's total variable costs are given by TVC (9) = 2-q2 , and it has a fixed cost of 1,180 of which 800 is avoaidable. We want to find the firm's
supply.
Let's first find the minimum of the average variable and avoidable costs. This will allow us to find the price below which the firm will not produce. Remember
for decisionmaking only the avoidable fixed cost matter.
This occurs are q 20
The price at which the firm just breaks even is P -
80
The firm's supply, then is qe
国國or Ps80
国岛and
P/4
团团or P>
80
Please give the supply in terms of upper case P and please use fractions.
Suppose a market for a constant cost industry is in Very Long Run equilibrium. The market demand is given by Q= 3,776 - 2- P.
Each firm in the market has total variable costs given by TVC(9) = 4-g, and it has an avoidable fixed cost of 1,024. The question we want to answer is:
What is the Very Long Run equilibrium for this market?
First let's find tho minimum of the average variable and avoidablo costs for each firm. This will allow us to find the price bolow which the firm will not produce.
This occurs are gm
The price at which each firm just breaks even is pe
Each firm's supply, then is g
=
for PS
固國 and
for P>
Please give your answer in terms of P and use fractions rather than decimals
In the Very Long Run the market price will be
the equilibrium quantity will be
each firm will produce
国
and the equilibrium number of firms will be
固助
Assume a perfectly competitive industry. The demand curve is Qp = 180 – 3 P and the supply curve is Qs = -16+4P.
Find producer and consumer surplus.
PS = $ 1152
国画
CS =$ 1536
Suppose that a that a subsidy of $4 per unit is granted to consumers. Find the benefit per unit from the subsidy on consumers and firms, as well as any
deadweight loss. (Please round to 2 decimal places)
Producer's Bene fit per unit = $ Number
Consumer's Benefit per unit = $ Number
DWL = $ Number
Please answer all 3 questions and show
calculations. Thank you in advance
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