The following relations describe monthly demand and supply for a wheat Qp = 32 - 4 Qs = ÷P- 16 where P is the price (in cents) per pound and Q is the quantity (in millions) of pounds. (a) What is the equilibrium price and output level? Suppose that wheat industry is a perfectly competitive industry consisting of a large number of identical irms. For a typical firm, the cost function is TC = 100 + 1000q². (b) Identify the marginal revenue of a typical firm in the industry. (c) Find the profit maximizing level of output produced by a firm. (d) If all firms are profit maximizing, then how many firms can operate in this industry?

The following relations describe monthly demand and supply for a wheat Qp = 32 - 4 Qs = ÷P- 16 where P is the price (in cents) per pound and Q is the quantity (in millions) of pounds. (a) What is the equilibrium price and output level? Suppose that wheat industry is a perfectly competitive industry consisting of a large number of identical irms. For a typical firm, the cost function is TC = 100 + 1000q². (b) Identify the marginal revenue of a typical firm in the industry. (c) Find the profit maximizing level of output produced by a firm. (d) If all firms are profit maximizing, then how many firms can operate in this industry?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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