Question 3: A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 60 +5Q², where is the annual output of a firm. The market demand curve is QP = 600-50P, where P is the market price. 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.
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![Question 3:
A competitive industry consists of identical 100 producers, all of whom operate with the
identical short-run total cost curve TC(Q) = 60 +5Q², where is the annual output of a
firm. The market demand curve is QP = 600-50P, where P is the market price.
1. What is the each firm's short-run supply curve?
2. What is the short-run industry supply curve?
3. Determine the short-run equilibrium price and quantity in this industry.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe02838e7-dc45-4607-88b3-6692c936110a%2Ff061bce3-8f8b-4f66-a84f-9a7ab9227fff%2F2pa9gv7_processed.jpeg&w=3840&q=75)
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- A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 60 + 5Q², where Q is the annual output of a fırm. The market demand curve is Qº = 600 – 50P, where P is the market price. %3D 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where Q is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price. 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.1. There is an industry consisting of 12 firms, each with total cost function given by TC(q) 3q² - 2q +867, where the fixed costs are non-sunk. The demand for the industry's product is given by Q¹ (p) = 448 - p per month. Firms are price takers. (a) Find the short-term equilibrium price, demand, the quantity produced by each firm, as well as firm's profit. What is the consumer surplus? What about the producer's surplus? (b) The government urgently needs to collect some extra tax revenues in the next four months to meet debt payments. This implies that it needs to collect the amount of T = 1000 per month from the industry. Calculate the tax level needed to raise this revenue depending on the type of tax. Which tax type is the better from a welfare perspective? i. An output tax of t per unit sold imposed on the firms. ii. 7-percent tax on firms' profits.
- 4) The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curves C(q) = 16+q², where q is the annual output of a firm. The market demand for bolts is Qd = 110-p (assume that the industry is perfectly competitive). a. What is the firm's short-run supply curve? b. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry. What is each firm's profit? d. e. What is the aggregate producer surplus?3. Technology for producing q gives rise to the cost function c(q) = aq+ bq². The market demand for q is p = a - Bq. (a) If a > 0, if b 0 and b 0 and b >0, what is the long run equilibrium market price and number of firms? Explain.Q6: A company operating in a perfectly competitive market is faced with the following total costs: TC = $500,000 + $400Q + $0.04Q? (a) Calculate the industry price necessary to induce short-run firm supply of 5,000, 10,000, and 15,000 tons of output. Assume that MC > AVC at every point along the firm's marginal cost curve and that total costs include a normal profit. (b) Calculate short-run firm supply at industry prices of $400, $1,000, and $2,000 per ton
- 8. Each firm belonging to a competitive industry has the following long-run cost function C(q) = 10g – 2 where q denotes the output of a representative firm. Firms can enter and exit the industry freely. The industry has constant costs: input prices do not change as industry output changes. The market demand facing the industry is given by 16 Q = 21 – P where Q denotes industry output and P is the market price of output. (a) Derive the long-run market equilibrium price and quantity. (b) Suppose the government introduces a quota of 6 units on the industry. Free entry ensures that the market price does not change from part (a). Given this, calculate the deadweight loss from the quota assuming the most pessimistic scenario: out of the set of consumers with willingness- to-pay above the market price, those with the lowest willingness to pay obtain the object. (c) Suppose the agents who obtain the object in part (b) can resell. Specify the demand function and supply function in the resale…The market for toys is perfectly competitive, with the short-run market demand and supply curves given by D: P = 200 -2Q. S: P = 100 + 3Q A certain fırm in this industry has a short-run marginal cost of production of mc = 10q. where q is the number of units of toys produced by the firm. What are the equilibrium industry price and quantity in the short run? Will the firm shut down if the total variable cost-10q? O P-160, Q-20: shut down O P-160, Q-20: not shut down O P-20. Q=160; not shut down O P-20. Q-160; shut downA representative firm operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,410 − 40P and QS = −390 + 20P. a. If the firm's short-run total cost is given by TC = 50 + 2q + 2q^2 what is its short-run profit-maximizing level of output? b. If the firm's long-run total cost given by TC = 50 + 2q + 2q^2 what is its long-run profit-maximizing level of output?
- 1. A competitive industry is composed of 24 identical firms. Each firm has the following marginal cost of production in the short-run: MC = 58 +8Q. Each firm has the following Total Cost of production in the short-run: TC = 2 + 58Q +4Q². Demand for the product is given by the following demand curve: Qd = 1,211 - 2P. a. Explain why each firm will produce where market equilibrium price (Pe) equals the firm's marginal cost of production (MC). b. Derive an equation for the industry supply curve (i.e., Q₁ = .....). c. Find the market equilibrium price and quantity.. d. Are firms in this industry earning profit or losses in the short-run? (Hint: first compute how much output each firm produces). e. Compute the deadweight loss that would be produced if the government placed a $15 per unit tax on suppliers.. f. Who bore the greater burden of the tax, consumers or producers? Explain.Suppose that the market demand for a product is given by ( A > 0 and B > 0). Suppose QABP=-also that in a competitive industry the typical firm’s cost function is given by (k > 2()Cqkaqbq=++0, a > 0 and b > 0).(a) Calculate the long-run equilibrium market price and the output for the typical firm. (b) Calculate the equilibrium number of firms in the market.(c) Describe how changes in the demand parameters A and B affect the equilibrium number of firms in this market. Explain your results intuitively.1) On a graph for a representative firm in a perfectly competitive industry, depict the three cost curves AVC, ATC, and MC (assume typical U-shaped cost curves). Now assume the market price, P, is such that it intersects the upward-sloping portion of MC above ATC. Graphically depict the short-run equilibrium q (representative firm's output) and π (representative firm's profit) under this price scenario. 2) Given the situation you graphically depicted in #1, please state the level of economic profits (positive, zero, negative) of this representative firm and explain why this is the case.