A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price.
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- Suppose that the market demand for a product is given by ( A > 0 and B > 0). Suppose QABP=-also that in a competitive industry the typical firm’s cost function is given by (k > 2()Cqkaqbq=++0, a > 0 and b > 0).(a) Calculate the long-run equilibrium market price and the output for the typical firm. (b) Calculate the equilibrium number of firms in the market.(c) Describe how changes in the demand parameters A and B affect the equilibrium number of firms in this market. Explain your results intuitively.Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2 Marginalcost: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 average total cost.b. Graph average-total-cost curve and the marginal-cost curve for qfrom 5 to 15. Atwhat quantity is average-total-cost curve at its minimum? What is marginal cost and averagetotal cost at that quantity?c. Give the equation for each firm's supply curve.d. Give the equation for the market supply curve for the short run in which the number of firms is fixed.e. What is the equilibrium price and quantity for this market in the short run?f. In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Is there incentive for firms to…The market for toys is perfectly competitive, with the short-run market demand and supply curves given by D: P = 200 -2Q. S: P = 100 + 3Q A certain fırm in this industry has a short-run marginal cost of production of mc = 10q. where q is the number of units of toys produced by the firm. What are the equilibrium industry price and quantity in the short run? Will the firm shut down if the total variable cost-10q? O P-160, Q-20: shut down O P-160, Q-20: not shut down O P-20. Q=160; not shut down O P-20. Q-160; shut down
- d, e, & f Consider a perfectly competitive industry where the typical firm has long run Total Cost TCLR = q2 + 2q + 196.a) Find the minimum efficient scale of the typical firm. MES = 30 b) Find the long run equilibrium price. P = 30 Suppose demand in this industry is Qd = 1,700 – 10P.c) Find the long run equilibrium quantity and how many firms can survive in this industry in the long run. Equilibrium Quantity = 1400 and # of firms = 100 Suppose government introduces a $10 per unit tax collected from sellers.d) The tax alters the long run total cost of the typical firm. In which way?e) Does the tax affect the minimum efficient scale of the typical firm?f) In the long run, by how much will the equilibrium price increase in response to the tax?In a competitive market, the long-run demand is given by P = 20 - (0.01)*q Firms in the industry have as their cost structure the expression C = q3 - 5q2 + 10q. Determine: (a) equilibrium price b) Quantity produced-sold of the firm. c) What quantity is traded in the market? d) Over what time period does this market work? (short or long term?) e) What is the profit of the individual firm? f) What will be the behavior of the individual firm, will it exit or stay in the market?A representative firm operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,410 − 40P and QS = −390 + 20P. a. If the firm's short-run total cost is given by TC = 50 + 2q + 2q^2 what is its short-run profit-maximizing level of output? b. If the firm's long-run total cost given by TC = 50 + 2q + 2q^2 what is its long-run profit-maximizing level of output?
- Assume a competitive firm faces a market price of $100, a cost curve of: C = 0.25q + 50q + 1,600 and a marginal cost curve of: MC = 0.50g + 50. The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00. However, if the firm wanted to maximize the profit per unit, how much would it produce? It would produce units. (round your answer to two decimal places) If the firm produced this output level, what would be the profit? Its profit would be S. (round your answer to the nearest penny)A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 60 + 5Q², where Q is the annual output of a fırm. The market demand curve is Qº = 600 – 50P, where P is the market price. %3D 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.If each competitive firm in an industry has the short-run cost function C=50 +5q+q^2, and themarket price is $35, what is the profit-maximizing output level for each firm? What is the totalrevenue? What are the profits?
- A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25+0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)For Parts (A) through (C) below, refer to the figure and table below. The figure below displays the short-run MC, AVC, and AC for a firm. The table displays the MC, AVC, and AC at specific levels of output for the same firm. q 0 4 6 MC(q) AVC(q) 10 10 6 6 14 8 AC(q) ∞ 15 14 MC(q) B) If the price of the good is $15 (p = 15), select the statement below that is true: A. The firm's profit in the short-run will be negative ( 0) in the short-run, what is the lowest the price (p) could be? D. The firm's profit in the short-run will be positive (π > 0). E. There is not enough information to know whether the profit will be greater than, less than, or equal to zero. AVC(q) > 8 60.00 9The market for calculators is a perfectly competitive industry facing typical U-shaped ATC, AVC, and MC cost curves. Demand is linear and has a downward slope. The industry is filled with many homogeneous firms. Using a side-by-side graph that depicts both the market (on the left) and a representative firm (on the right), graphically depict what will happen to (a) P (price), (b) Q (market output), (c) q (representative firm's output), and (d) π (representative firm's profit) when the market moves from the original short run equilibrium (SRE) with positive profits to a new long run equilibrium (LRE).