Suppose that each firm in a competitive industry has the following costs:Total Cost: TC = 50+ 1/2q²Marginal Cost: MC = qwhere 9 is an individual firm's quantity produced.The market demand curve for this product is:Demand D = 160 - 4Pwhere P is the price and is the total quantity of the good.Each firm's fixed cost is $What is each firm's variable cost?50+ 1/1/1919²129 Complete the following table by computing the total cost and average total cost for each quantity produced.Quantity Total Cost Average Total Cost(Pies)(Dollars)(Dollars)123456The price of a pie is now $11.At a price of $11,a profit of $True or False: The market is in long-run equilibrium.Truepies are sold in the market. Each producer makesFalseSuppose that in the long run there is free entry and exit.In the long run, each producer earns a profit of $producer makespies, so there areThe market price is $producers operating.pies, so there areAt this price,producers in this market, each makingpies are sold in this market, and each The market for apple pies in the city of Ectenia is competitive and has the following demand schedule:5678910115621213Each producer in the market has a fixed cost of $9 and the following marginal cost:Quantity(Pies)12348007006005004003002001000Marginal Cost(Dollars)24681012ky

Introduction of concept: Firm total cost is equal to the sum of fixed cost and the variable cost.…

Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 19² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand QD = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? ○ 50+ / 9 19² O q

Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 19² Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand QD = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is What is each firm's variable cost? ○ 50+ / 9 19² O q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2 Where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Q = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost? At what quantity efficiency of scale would be achieved? Give the equation for each firm’s supply curve Give the equation for the market supply curve for the short run What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit? In the long run with free entry and exit, what is the equilibrium price and quantity in this market? In the long-run equilibrium, how many firms are in the market?
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Suppose the quantity of apples supplied in yourmarket is 2,400. If there are 60 apple producers,each with identical cost structures, how manyapples does each producer supply to the market?
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