A firm sells its output in a perfectly competitive market. The firm's short-run total cost function is given by SC = 9³ - 0.2q² + 4q + 10. 300 a. Find the short-run supply function of a typical firm in this industry b. Assume that there are 100 identical firms in this industry, what is the short-run market supply function? c. Currently, the market demand for these firm's product is Q = 8000 – 200pz. Determine the short-run equilibrium market price. d. How much output does each firm produce in the short run? e. How much profit does each firm make? f. Is there an incentive for new firms to enter the market? Why or why not?

A firm sells its output in a perfectly competitive market. The firm's short-run total cost function is given by SC = 9³ - 0.2q² + 4q + 10. 300 a. Find the short-run supply function of a typical firm in this industry b. Assume that there are 100 identical firms in this industry, what is the short-run market supply function? c. Currently, the market demand for these firm's product is Q = 8000 – 200pz. Determine the short-run equilibrium market price. d. How much output does each firm produce in the short run? e. How much profit does each firm make? f. Is there an incentive for new firms to enter the market? Why or why not?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.9P

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