Sheet1 EX1-F18-V26 Suppose the market for N52 neodymium alloy magnets is composed, on the supply side, of 50 identical producers who use a sintered powdered metal process and 170 identical producers...

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Sheet1 EX1-F18-V26 Suppose the market for N52 neodymium alloy magnets is composed, on the supply side, of 50 identical producers who use a sintered powdered metal process and 170 identical producers who use a rapid solidification process. Suppose that customers are indifferent between the product of these differing processes and producers. The firms are price takers. The sintering producers have a cost function as follows. where a=0.019costs are measured in dollars per ton b=-1.9 c=1200quantity is measured in tons per year per firm d=800000 The rapid solidification producers have a cost function as follows. where e=0.018costs are measured in dollars per ton f=-2.1 g=1000quantity is measured in tons per year per firm h=1200000 Suppose further that these 220 firms compose a market which on the demand side can be characterized by the following market demand function. where i=63778.68 j=-8.33698 k=0.602111 m=326.64229 n=166.2089 r=-2531.58 DIPC=27000 P_oil=76.57 P_solar=158 P_copper=2.47 Q_d is market quantity demanded per year in tons P is the market price of N52 magnets in dollars per ton ($/ton) DIPC is disposable personal income in dollars per year P_oil is price of West Texas Intermediate Crude in dollars per barrel ($/bbl.) P_solar is the LCOE of PV solar power in dollars per megawatt hour ($/mWh) P_copper is the commodity price of copper in dollars per pound ($/lb.) 1)Looking at their cost functions, which producer do you expect to have higher capacity? 2)What is the capacity of a sintering type producer? 3)At a price of 1000 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 4)At a price of 1000 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 5)At a price of 1000 dollars per ton, what is market quantity supplied? 6)At a price of 1000 dollars per ton, what is the profit of a sintering type firm at an annual rate? 7)At a price of 1000 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 8)At a price of 1000 dollars per ton, how much are market profits? 9)At a price of 5800 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 10)At a price of 5800 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 11)At a price of 5800 dollars per ton, what is market quantity supplied? 12)At a price of 5800 dollars per ton, what is the profit of a sintering type firm at an annual rate? 13)At a price of 5800 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 14)At a price of 5800 dollars per ton, how much are market profits? 15)At a price of 7800 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 16)At a price of 7800 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 17)At a price of 7800 dollars per ton, what is market quantity supplied? 18)At a price of 7800 dollars per ton, what is the profit of a sintering type firm at an annual rate? 19)At a price of 7800 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 20)At a price of 7800 dollars per ton, how much are market profits? 21)If the price of oil is 76.57 $/bbl. and the price of copper is 2.47 $/lb. and the price of solar is 158 $/mWh and DIPC is $27000, then what is the reduced formula for inverse demand? 22)If the price of N52 is 5000 dollars per ton, what is the price elasticity of demand? 23)Is demand under these conditions elastic, inelastic or unit elastic? 24)Calculate income elasticity at this price. 25)At this price, is demand cyclic, non-cyclic or countercyclic? 26)Calculate cross-price elasticity of demand with respect to oil. 27)According to their cross-price elasticity, are these goods substitutes or complements? 28)Find the equilibrium price in this market given that it is a multiple of 1000 $/ton. 29)At equilibrium price, what quantity is supplied by a sintering type firm? 30)At equilibrium price, what quantity is supplied by a RS type firm? 31)What is market quantity supplied at the equilibrium price? 32)What is market quantity demanded at the equilibrium price? 33)In this equilibrium, what is ATC for a sintering type firm? 34)In this equilibrium, what is AVC for a sintering type firm? 35)In this equilibrium, what is AFC for a sintering type firm? 36)In this equilibrium, what is ATC for a RS type firm? 37)In this equilibrium, what is AVC for a RS type firm? 38)In this equilibrium, what is AFC for a RS type firm? 39)In this equilibrium, what is profit for a sintering type firm? 40)In this equilibrium, what is profit for a RS type firm? 41)Grad student question: What is the shutdown point for a sintering type firm? 42)Grad student question: What is the shutdown point for a RS type firm? 43)Grad student question: in this equilibrium, what is MC for a sintering type firm? 44)Grad student question: in this equilibrium, what is MC for a RS type firm? Midterm Exam&CEIUECN4751 Version 26Page &P+ EX1-F18-V27 Suppose the market for N52 neodymium alloy magnets is composed, on the supply side, of 70 identical producers who use a sintered powdered metal process and 150 identical producers who use a rapid solidification process. Suppose that customers are indifferent between the product of these differing processes and producers. The firms are price takers. The sintering producers have a cost function as follows. where a=0.018costs are measured in dollars per ton b=-1.9 c=1500quantity is measured in tons per year per firm d=1200000 The rapid solidification producers have a cost function as follows. where e=0.015costs are measured in dollars per ton f=-2 g=1300quantity is measured in tons per year per firm h=1400000 Suppose further that these 220 firms compose a market which on the demand side can be characterized by the following market demand function. where i=64042.16 j=-8.71328 k=1.076353 m=243.26565 n=140.7538 r=-9013.79 DIPC=25500 P_oil=118.20 P_solar=130 P_copper=0.87 Q_d is market quantity demanded per year in tons P is the market price of N52 magnets in dollars per ton ($/ton) DIPC is disposable personal income in dollars per year P_oil is price of West Texas Intermediate Crude in dollars per barrel ($/bbl.) P_solar is the LCOE of PV solar power in dollars per megawatt hour ($/mWh) P_copper is the commodity price of copper in dollars per pound ($/lb.) 1)Looking at their cost functions, which producer do you expect to have higher capacity? 2)What is the capacity of a rapid solidification type producer? 3)At a price of 1400 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 4)At a price of 1400 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 5)At a price of 1400 dollars per ton, what is market quantity supplied? 6)At a price of 1400 dollars per ton, what is the profit of a sintering type firm at an annual rate? 7)At a price of 1400 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 8)At a price of 1400 dollars per ton, how much are market profits? 9)At a price of 6400 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 10)At a price of 6400 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 11)At a price of 6400 dollars per ton, what is market quantity supplied? 12)At a price of 6400 dollars per ton, what is the profit of a sintering type firm at an annual rate? 13)At a price of 6400 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 14)At a price of 6400 dollars per ton, how much are market profits? 15)At a price of 6800 dollars per ton, what is the profit maximizing choice of quantity for a sintering type firm? 16)At a price of 6800 dollars per ton, what is the profit maximizing choice of quantity for a rapid solidification type firm? 17)At a price of 6800 dollars per ton, what is market quantity supplied? 18)At a price of 6800 dollars per ton, what is the profit of a sintering type firm at an annual rate? 19)At a price of 6800 dollars per ton, what is the profit of a rapid solidification type firm at an annual rate? 20)At a price of 6800 dollars per ton, how much are market profits? 21)If the price of oil is 118.2 $/bbl. and the price of copper is 0.87 $/lb. and the price of solar is 130 $/mWh and DIPC is $25500, then what is the reduced formula for inverse demand? 22)If the price of N52 is 5000 dollars per ton, what is the price elasticity of demand? 23)Is demand under these conditions elastic, inelastic or unit elastic? 24)Calculate income elasticity at this price. 25)At this price, is demand cyclic, non-cyclic or countercyclic? 26)Calculate cross-price elasticity of demand with respect to copper. 27)According to their cross-price elasticity, are these goods substitutes or complements? 28)Find the equilibrium price in this market given that it is a multiple of 1000 $/ton. 29)At equilibrium price, what quantity is supplied by a sintering type firm? 30)At equilibrium price, what quantity is supplied by a RS type firm? 31)What is market quantity supplied at the equilibrium price? 32)What is market quantity demanded at the equilibrium price? 33)In this equilibrium, what is ATC for a sintering type firm? 34)In this equilibrium, what is AVC for a sintering type firm? 35)In this equilibrium, what is AFC for a sintering type firm? 36)In this equilibrium, what is ATC for a RS type firm? 37)In this equilibrium, what is AVC for a RS type firm? 38)In this equilibrium, what is AFC for a RS type firm? 39)In this equilibrium, what is profit for a sintering type firm? 40)In this equilibrium, what is profit for a RS type firm? 41)Grad student question: What is the shutdown point for a sintering type firm? 42)Grad student question: What is the shutdown point for a RS type firm? 43)Grad student question: in this equilibrium, what is MC for a sintering type firm? 44)Grad student question: in this equilibrium, what is MC for a RS type firm? Midterm Exam&CEIUECN4751 Version 27Page &P+ EX1-F18-V28 Suppose the market for N52 neodymium alloy magnets is composed, on the supply side, of 70 identical producers who use a sintered powdered metal process and 160 identical producers who use a rapid solidification process. Suppose that customers are indifferent between the product of these differing processes and producers. The firms are price takers. The sintering producers have a cost function as follows. where a=0.014costs are measured in dollars per ton b=-1.9 c=1300quantity is measured in tons per year per firm d=800000 The rapid solidification producers have a cost function as follows. where e=0.013costs are measured
Oct 26, 2021
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