Suppose that each firm in a competitive industry has the following costs: where q is an individual firm’s quantity produced. The market demand curve for this product is where P is the price and Q is...


Suppose that each firm in a competitive industry has the following costs:










whereq is an individual firm’s quantity produced. The market demand curve for this product is










whereP is the price andQ is the total quantity of the good. Currently, there are 9 firms in the market.




  1. What is each firm’s fixed cost? What is its variable cost? Give the equation for average total cost.




  2. Graph average-total-cost curve and the marginal-cost curve forq from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity?




  3. Give the equation for each firm’s supply curve.




  4. Give the equation for the market supply curve for the short run in which the number of firms is fixed.




  5. What is the equilibrium price and quantity for this market in the short run?




  6. In this equilibrium, how much does each firm produce? Calculate each firm’s profit or loss. Is there incentive for firms to enter or exit?




  7. In the long run with free entry and exit, what is the equilibrium price and quantity in this market?




  8. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?




Chrome<br>File<br>Edit<br>View<br>History<br>Bookmarks<br>People<br>Tab<br>Window Help<br>41% (4)<br>Tue 6:46 PM<br>Ocean Connect<br>Course Modules: Mic X<br>MindTap - Cengage<br>A M7. Assignment: Ana X<br>A Assignment Schedul x<br>A Course Modules: Mic X<br>b My Questions | bartle X<br>ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5761082221551259286417763212&elSBN=9781337096577&id=648469278&snapshotld=1476550&<br>Nancy v<br>CENGAGE MINDTAP<br>Q Search this course<br>MAIN MENU<br>Interactive Book: Firms in Competitive Markets (Ch 14)<br>My Home<br>Courses<br>11. Suppose that each firm in a competitive industry has the following costs:<br>A-Z<br>CENGAGE UNLIMITED<br>Total cost:<br>TC = 50 + ½ q?<br>Browse Catalog<br>Marginal cost: MC = q<br>Partner Offers<br>where q is an individual firm's quantity produced. The market demand curve for this product is<br>Print Options<br>College Success<br>QD = 120 – P<br>Demand:<br>%3D<br>Career Center<br>where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market.<br>Э Help<br>Give Feedback<br>a. What is each firm's fixed cost? What is its variable cost? Give the equation for average total cost.<br>b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is<br>average-total-cost curve at its minimum? What is marginal cost and average total cost at that<br>quantity?<br>c. Give the equation for each firm's supply curve.<br>At<br>d. Give the equation for the market supply curve for the short run in which the number of firms is<br>fixed.<br>64<br>PAGES<br>3.141593<br>MAR<br>10<br>alalıbala<br>...<br>пия<br>!!!<br>

Extracted text: Chrome File Edit View History Bookmarks People Tab Window Help 41% (4) Tue 6:46 PM Ocean Connect Course Modules: Mic X MindTap - Cengage A M7. Assignment: Ana X A Assignment Schedul x A Course Modules: Mic X b My Questions | bartle X ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5761082221551259286417763212&elSBN=9781337096577&id=648469278&snapshotld=1476550& Nancy v CENGAGE MINDTAP Q Search this course MAIN MENU Interactive Book: Firms in Competitive Markets (Ch 14) My Home Courses 11. Suppose that each firm in a competitive industry has the following costs: A-Z CENGAGE UNLIMITED Total cost: TC = 50 + ½ q? Browse Catalog Marginal cost: MC = q Partner Offers where q is an individual firm's quantity produced. The market demand curve for this product is Print Options College Success QD = 120 – P Demand: %3D Career Center where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. Э Help Give Feedback 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 q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c. Give the equation for each firm's supply curve. At d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. 64 PAGES 3.141593 MAR 10 alalıbala ... пия !!!
Jun 09, 2022
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