The handmade snuffbox industry is composed of 100 identical firms each having short-run total costs given by , where q is the output per day.20.5105STCqq=++(a) What is the short-run supply curve for each firm? What is the short-run supply curve for the market?(b) Suppose the demand is given by . What will be the equilibrium (both quantity and 110050QP=-price) in this marketplace? (c) What will each firm’s short-run profits be?
The handmade snuffbox industry is composed of 100 identical firms each having short-run total costs given by , where q is the output per day.20.5105STCqq=++(a) What is the short-run supply curve for each firm? What is the short-run supply curve for the market?(b) Suppose the demand is given by . What will be the equilibrium (both quantity and 110050QP=-price) in this marketplace? (c) What will each firm’s short-run profits be?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The handmade snuffbox industry is composed of 100 identical firms each having short-run total costs given by , where q is the output per day.20.5105STCqq=++(a) What is the short-run supply curve for each firm? What is the short-run supply curve for the market?(b) Suppose the demand is given by . What will be the
Transcribed Image Text:2. The handmade snuffbox industry is composed of 100 identical firms each having short-run total costs
given by STC = 0.5q +10q +5, where q is the output per day.
(a) What is the short-run supply curve for each firm? What is the short-run supply curve for the market?
(b) Suppose the demand is given by Q = 1100- 50P. What will be the equilibrium (both quantity and
price) in this marketplace?
(c) What will each firm's short-run profits be?
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