The objective of this sheet is to show you how prices and quantities are determined for each market structure and competition styles. It will also allow you to compare different market outcomes The demand for cookies is given by Q=120-P, where Q is the number of boxes of cookies. Assume a constant unit cost of $10, i.e. ATC=MC-$10. You may use the table below to help you understand the steps, but you don't have to. Price 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity Profit Perfect Competitive market: Assume the market was perfectly competitive. a. The long run equilibrium P=....... and Q=.. b. Industry profit=........

The objective of this sheet is to show you how prices and quantities are determined for each market structure and competition styles. It will also allow you to compare different market outcomes The demand for cookies is given by Q=120-P, where Q is the number of boxes of cookies. Assume a constant unit cost of $10, i.e. ATC=MC-$10. You may use the table below to help you understand the steps, but you don't have to. Price 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity Profit Perfect Competitive market: Assume the market was perfectly competitive. a. The long run equilibrium P=....... and Q=.. b. Industry profit=........

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Practice Sheet: Market Structure
The objective of this sheet is to show you how prices and quantities are determined for each
market structure and competition styles. It will also allow you to compare different market
outcomes
The demand for cookies is given by Q=120-P, where Q is the number of boxes of cookies.
Assume a constant unit cost of $10, i.e. ATC=MC-$10. You may use the table below to help
you understand the steps, but you don't have to.
Price
0
10
20
30
40
50
60
70
80
90
100
110
120
Quantity
Profit
Perfect Competitive market: Assume the market was perfectly competitive.
a. The long run equilibrium P=....... and Q=..
b. Industry profit=...

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