The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=358+q^2 and Marginal Cost curve MC=2q. Market demand is Q=600-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? Hint: first find the number of firms by solving for the original LR equilibrium.

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

Q: Market demand is P = 50 -2Q. Firm has cost function TC(Q) = 5 + 2Q + Q^2. Can firm function as a…

A: A perfectly competitive market structure is one where there are large number of buyers and sellers.…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: Given: TC= 599+17q+q2 MC=17+2q  Q = 517-p   Market price = $95

Q: Consider a perfectly competitive market. Right now we have two types of firms. Firms using…

A: The total number of firms of type A is 10 and the total number of firms of type B is 20. The…

Q: Please answer all three questions below (part a,b & c), thank you. Consider a firm with 1 input and…

A: Production function : f(x) = x1a Input price = c  Output price = p  A producer demands that level of…

Q: Question 1 . In 2004, the country of Lesotho in southern Africa made most of its export earnings,…

A: Referenceshttp://pressbooks.oer.hawaii.edu/principlesofmicroeconomics/chapter/8-2-how-perfectly-comp…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Q: There are 240 firms of type A and 180 firms of type B in a perfectly competitive market. On one…

A: Equilibrium in the competitive market is reached where quantity demanded is equal to quantity…

Q: 2. The market for a slice of pizza in Oakland is highly competitive. The market demand for a slice…

A: In short run equilibrium firm can earn positive, negative or zero profits. But it will shut down its…

Q: Each firm in a competitive market has a cost function of: so its marginal cost function is The…

A: In a competitive market , The firm will produce at point where MC = P  Equilibrium price is the…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: TC=712+q2Now,AC=TCqAC=712q+q

Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…

A: A perfectly competitive market refers to the market in which there is a large number of buyers or…

Q: a competitive industry have identical cost functions c(y)=y2+ 25 for y> 0 and C(0) = 0. The demand…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Suppose that the long run cost function of a price taking firm is given by C(q)=12+3q2+3q. Solve…

A: A firm in the long run would be earning at a higher level than the cost they are indulging. It means…

Q: The demand curve and supply curve for carpet cleaning in the local market are currently as follows:…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Find an individual firm’s supply curve. How many firms are there currently in the market?

A:

Q: A competitive firm's production function is given by y = f(x₁, x₂) = 4x1¹/²+10x¹/2 a) The price of…

A: (a) Profit (π) = Total Revenue - Total CostTR = P x yTotal Cost (TC) is the cost of factor 1 (w1)…

Q: For the production function from the previous homework: y = Kα Lα Assume that the firm is in the…

A: The long-run cost function is given by:LTC( q) = (K^1/(1+α)) * (w1/p)^(1/(1+α)) * qwhere:q is the…

Q: The inverse demand for shampoo is P = 30 – 0.03Q, where P is the price per bottle in dollars and Q…

A: Step 1:Inverse demand refers to the relationship between the price of a good or service and the…

Q: Suppose that the additional revenue that comes from the 100th unit is $5, and the marginal cost of…

A: Introduction:This question imagines a bustling marketplace where firms compete to produce and sell…

Q: Suppose a perfectly competitive firm's production function is f(x1,x2) = xx, e price of the product…

A: f(x1,x2) = x11/3 x22/3. Put x2 = 8 (Given) => f(x1,x2) = x11/3 (8)2/3. => f(x1,x2) = 4*x11/3 .…

Q: firm’s production function is Q = 10 + 30L - .5L2+ 30K – K2, and its competitive demand function is…

A: Answer   A firm’s production function is Q = 10 + 30L - 0.5L2 + 30K – K2   MPL =  = 40 - L   At…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…

Q: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…

A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…

Q: A competitive firm’s production function is Q = 100 + 40L - .5L2 + 20K – .5*K2, and its demand…

A: An interaction by which organizations and ventures decide procedures to create more gains with the…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: The cost function of competitive firm is TC = 20 + 5Q2. The product's market price is 30 AZN. Please…

A: Let Q is unit of output produced. Product price is 30 per unit.  ----------------- Total revenue =…

Q: Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost…

A: TC = 4,500 + 2q + .0005q2 We know that  ATC = TC / q ATC = (4,500 + 2q + .0005q2) / q   TC = 4,500 +…

Q: A firm's production function is y = x10.3x2. w1 = 6 and w2 = 6. Output is sold at a price of $10 per…

A: Profit is maximized when marginal product of input is equal to ratio of price of input and price of…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Under perfect competition, an individual firm is a price taker in the market. All firms sell a…

Q: Suppose you are given the following information about a particular industry:                Market…

A: Given information-

Q: (9) = 200 + q*/2. %3D hat is each firm's supply function? =p+25 = p- 25 ose the market is in a…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Suppose the total cost to produce quantity q is TC(q) = 10 + q^2/10, and hence, marginal cost is…

A: Given : TC(q) = 10 + q^2/10 MC(q) = q/5 p = 10

Q: Suppose you are managing a firm in a perfectly competitive industry. Your demand, supply and cost…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market is a market structure where all seller sell identical products, firm…

Q: A competitive firm's production function is given by y = f(K, L) = 8K 1 /2 + L 1/4 Assume that the…

A: Production function represent the technological  relationship between input and output  of the goods…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?