Suppose that there are 100 consumers in a perfectly competitive market and individual demand curves of these consumers are identical. Also, assume that there are 10 firms in the industry and these firms are identical as well. The following information is provided about this competitive market: Individual Demand Curve: P = 100 - 10QD Total Cost of a Representative (individual) Firm: TC = 20Q + (1/6) Q? + 100 and MC=20+1/3Q a) What is the market demand function? b) What is the market supply function?

Suppose that there are 100 consumers in a perfectly competitive market and individual demand curves of these consumers are identical. Also, assume that there are 10 firms in the industry and these firms are identical as well. The following information is provided about this competitive market: Individual Demand Curve: P = 100 - 10QD Total Cost of a Representative (individual) Firm: TC = 20Q + (1/6) Q? + 100 and MC=20+1/3Q a) What is the market demand function? b) What is the market supply function?

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

There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $12 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $10 and the variable cost is 3q. Market demand function is given by Q=1200-70 P. Find the equilibrium price in the market. $7 $8 $12 $10
Assume that a competitive firm has the total cost function: TC=1q3−40q2+820q+1900TC=1q3-40q2+820q+1900 Suppose the price of the firm's output (sold in integer units) is $650 per unit. Using tables (but not calculus) to find a solution, what is the total profit at the optimal output level? Please specify your answer as an integer.
A catering company producing fruit ice, in the Tandy school, has a production function q = 10min(k,l), where k is capital and 1 is labor. a. 15% If v = 81000 and w = 500 and P = 8600, where v, w, and P are as per the lecture notes, how many units of fruit ice will be produced and how much profit will be obtained? b. 10% Draw the supply curve for this catering company.
Can you show how Qsc is = 2Pc? Which is the answer for this.
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 is the firm’s demand curve? Show it on a graph and label the axes showing P and Q
Is Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. (?) PRICE (Dollars per hot dog) 5.0 4.5 4.0 8 3.5 3.0 2 25 e 20 1.5 0.5 + 0 0 10 20 Competitive Market S-MC 30 40 50 60 70 QUANTITY (Hot dogs) 80 90 D 100 + PC Outcome Assume that one of the hot dog vendors successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog vendors in the city and operates as a monopoly. Assume that this change doesn't affect demand and that the new monopoly's marginal cost…
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 level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well
Window cleaning is a perfectly competitive market in Boston. The daily market demand for window cleaning in Boston is Q(P) = 360 ‒ 4P, where Q represents the daily number of houses served and P is the price per house; and (2) the current market price per house served is 30. Each window-cleaning firm faces a daily total cost of TC(q) 72+ 1/2 q2, where q represents the number of houses served per day. What is the current daily profit for each window-cleaning firm? A. -72 B. 0 C. 378 D. 400 E. 578
Suppose a typical (representative) corn farm has a short run production technology which results in the outcome of U-shaped Average Variable Cost (AVC), Average Total Cost (ATC), and Marginal Cost (MC). Further, suppose this firm sells its product in a market where the price of the good is determined by the interaction of market Demand and Supply. Because an individual firm is very small compared to the rest of the market, we treat the market price as the price given to the firm, and the individual firm cannot impact that price. assume we are in the Short Run for this firm. In graphing, put $ on the vertical axis and lower-case q (firm output) on the horizontal axis. Start with the AFC0, AVC0, ATC0, and MC0 curves . show shifts in any of the cost curves, reflecting the higher cost of land (keeping in mind that this higher cost is independent of how much or how little corn is actually produced) and labeling the changed cost curves with a subscript 1. On the graph with $ on the…
Answer options: 0, 5, 7, 10, 15, 20, 25, Other
Can you complete this question entirely and provide the solutions.
You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $8 Market price = $13 Quantity MC ($) 1 10 2 8 3 9 4 11 5 14 6 18 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much?