Please solve 4 and 5 questions.The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 + P. The short run cost function of a representative firm in this market is TC = 150 + 3q2. According to these informationCalculate the equilibrium price and quantity for this market.Calculate the profit maximizing output of this representative firm.Calculate the profit of this firm.Analyze this firm’s position in terms of shut down condition. Should this firm operate or shut-down in the short run.If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?

The firm will shut down if Price < AVC and will continue operating if Price > AVC. Using…

Answered: The demand curve and supply curve for a…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 8SQP

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Please solve 4 and 5 questions.

The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 + P. The short run cost function of a representative firm in this market is TC = 150 + 3q². According to these information

Calculate the equilibrium price and quantity for this market.
Calculate the profit maximizing output of this representative firm.
Calculate the profit of this firm.
Analyze this firm’s position in terms of shut down condition. Should this firm operate or shut-down in the short run.
If all firms had the same cost structure, how many firms would compete at the equilibrium price computed in (a) above?

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