Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2Where q is an individual firm’s quantity produced. The market demand curve for this product isDemand: Q = 120 – PWhere P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost?At what quantity efficiency of scale would be achieved?Give the equation for each firm’s supply curveGive the equation for the market supply curve for the short runWhat is the equilibrium price and quantity for this market in the short run?In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit?In the long run with free entry and exit, what is the equilibrium price and quantity in this market?In the long-run equilibrium, how many firms are in the market?

The efficiency of scale is the point where the average cost is the minimum and it is equal to…

Answered: Suppose that each firm in a competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q²

Where q is an individual firm’s quantity produced.

The market demand curve for this product is

Demand: Q = 120 – P

Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market

What is each firm’s fixed cost? What is its variable cost?
At what quantity efficiency of scale would be achieved?
Give the equation for each firm’s supply curve
Give the equation for the market supply curve for the short run
What is the equilibrium price and quantity for this market in the short run?
In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit?
In the long run with free entry and exit, what is the equilibrium price and quantity in this market?
In the long-run equilibrium, how many firms are in the market?

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions