3. Suppose that each firm in a competitive industry has the following costs:Total Cost: TC = 50+ ¹/29²Marginal Cost: MC = qwhere q is an individual firm's quantity produced. The market demand curve forthis product isDemand: QD = 120 - Pwhere P is the price and Q is the total quantity of the good. Currently, there are 9firms in the market.What is each firm's fixed cost? What is its variable cost? Give the equation forab(C)At q=10, the average-total-costand average total cost at that quantee)f)long run supplycurve.d)Give the equation for the market supply curve for the short run in which thenumber of firms is fixed.What is the equilibrium price and quantity for this market in the short run?In this equilibrium, how much does each firm produce? Calculate each firm'sprofit or loss. Do firms have an incentive to enter or exit?8In the long run with free entry and exit, what is fequilibrium pric

In competitive industry there are many firms producing identical goods that makes them price takers.

3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 +¹/29² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120-P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a What is each firm's fixed cost? What is its variable cost? Give the equation for b) Ata=10, the average-total-cost C) and average total cost at that quande curve. d) Give the equation for the market supply curve for the short run in which the number of firms is fixed. e) f) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Do firms have an incentive to enter or exit? In the long run with free entry and exit, what is uilibrium price

3. Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 +¹/29² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is Demand: QD = 120-P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a What is each firm's fixed cost? What is its variable cost? Give the equation for b) Ata=10, the average-total-cost C) and average total cost at that quande curve. d) Give the equation for the market supply curve for the short run in which the number of firms is fixed. e) f) What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Do firms have an incentive to enter or exit? In the long run with free entry and exit, what is uilibrium price

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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