Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) = 0.025q +200. The total demand in the market is given by Qp=60,000-10,000P. The supply curve for each firm is given by The competitive price in this market is v. HINT: you need to first find the total market supply. Each firm is producing v units. True or False: The competitive market is in long run equilibrium.
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- Each firm in a competitive market has a cost function of C= 10g - 49² +g°. There are an unlimited number of potential firms in this market. The market demand function is Q= 34 -D. Determine the long-run equilibrium price, quantity per firm, market quantity, and number of firms. The long-run equilibrium price is $ (Enter your response as a whole number.) DEC 13 O tv MacBook Air 80 DII esc F1 F2 F3 F4 F5 F6 F7 FB @ $ % & 1 2 3 4 7 8. Q W Y tab S J caps lock C M. control option command つ エ > *: レThe figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right). Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A. Price Cost MC ATC A 4 2 1 D 2 4 6 8 10 12 Quantity Quantity Refer to the figure above. Suppose that the market has reached the long-run equilibrium. Then, due to news of the product's defects and recall, the demand falls by 4 units at each price. At the new equilibrium, each firm in the market earns and there will be a. zero economic profit; neither entry nor exit of firms b. positive economic profit; entries of new firms C. zero accounting profit; both entry and exit of firms d. negative economic profit; exit of existing firmsSuppose that each firm in a competitive industry has thefollowing costs: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm’s quantity produced. The marketdemand curve for this product is Demand: QD = 120 – P where P is the price and Q is the total quantity of the good.Currently, there are 9 firms in the market. 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 curvefor q from 5 to 15. At what quantity is average total cost curve atits minimum? What us marginal cost and average total cost at thisquantity? c. Give the equation each firm’s supply curve. d. Give the equation for the market supply curve for the shortrun in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market inthe short run? f. In this equilibrium, how much does each firm produce?Calculate each firm’s profit or loss. Is there incentive for…
- There are 240 firms of type A and 180 firms of type B in a perfectly competitive market. On one hand, type A firm faces a fixed cost (all sunk) of $6 and average variable cost is 2q. On the other hand type B firm faces a fixed cost (all sunk) of $4 and the variable cost is 3q. Market demand function is given by Q=2400-10P. Find the equilibrium price in the market. $36 $12 O$24 $48Each of the 8 firms in a competitive market has a cost function of C=5+q?. The market demand function is Q = 120 - p. Determine the equilibrium price, quantity per firm, and market quantity. The equilibrium price is $|: (Enter your response as a whole number.) The quantity per firm is q = units. (Enter your response as a whole number.) The market quantity is Q= units. (Enter your response as a whole number.) Enter your answer in each of the answer boxes.Consider a perfectly competitive market with the market demand functionQd = 1000 − 10pThere are many small, identical firms in the market. Each firm has the marginal cost function:MC = 10 + 10qand the average total cost function:ATC = 45/q + 10 + 5q(a) Suppose the equilibrium price is currently 30 (in the short run). Determine the quantity sold by eachfirm, the market equilibrium quantity, and the number of firms there must be in the market. Hint: Onceyou know the market quantity and quantity per firm, you can back out the number of firms.(b) If entry and exit is possible in the long run, determine long-run equilibrium price, quantity sold by eachfirm, the market equilibrium quantity, and the number of firms there will be
- 20 10 MO 0 10 MR Demand 20 30 40 10 00 70 QUANTITY (Thousands of jackets) 00 100 Because this market is a price-searcher market, you can tell that it is in long-run equilibrium by the fact that Furthermore, the quantity the firm produces in long-run equilibrium is s the efficient scale. P> ATC MR MC PATC MR > MC at the optimal quantity,Suppose there are only two firms in a competitive market for a good. Firm 1's marginal cost curve is given by MC = 2.5 +0.5Q and the equation of 4+Q³. What is the equation of the - firm 2's marginal cost curve is MC supply function for this market? - a) MC = 6.5 +1.5Q⁹ b) MC = 0.33Q⁹ +3 c) Q³ = 3p - 9 d) P = 6.5 +1.5QsFarmer Jones grows apples. The average total cost and marginal cost of growing apples for an individual farmer are illustrated in the graph to the right Assume the market for apples is perfectly competitive 40- According to the graph, farmer Jones will eam profit (positive economic profit as opposed to losses) at any market price above $ 10 per box. (Enter a numeric response using an integer) Assume that the market price specifically is $24 per box Iffarmer Jones produces the profit maximizing quantity, what will be her profit? S 36- To more easily identify the price and quantity, click on the graph to the nght, and then adjust the slider to change the price and quantity Each increment will increase the prce by $2. 32- MC 28- 24- 20- 16- ATC 12- 8- 4- :46 10 20 30 40 50 60 70 80 90 100 Quantity of Apples (boxes per month) Price and cost (dollars per box)
- Suppose that the market for air fresheners is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. 40 36 Profit or Loss 32 28 24 ATC 16 12 AVC MC + 0 2 4 8 10 12 14 16 18 QUANTITY (Thousands of air fresheners) In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners per day. 20 20 8. PRICE (Dollars per air freshener)1. Emad is a lettuce supplier in a perfectly competitive lettuce market in Kuwait. If the demand for lettuce in Kuwait is given by: Qo = 40,000 – 10,000P, Where Q is the quantity of lettuce boxes and P is the price of a lettuce box. In the short-run, Emad's has the following total cost function for his production of lettuce: TCimad = 0.25Q +Q +3 Assume that Emad is one of 1000 sellers in the Kuwaiti lettuce market with identical costs. Answer the following questions: e. wnat is tne market suppiy tunction in the short-run? 1. What is the short-run equilibrium price and equilibrium quantity in this market? g. Draw a rough sketch of the market demand and supply functions, showing the optimal point and all intersections with the horizontal and vertical axes. h. What is the demand function for Emad's lettuce in the short-run?The market for paperback detective novels is perfectly competitive. We have two types of book publishers in the market- Small Press and Large Press. Each Small Press publisher's supply curve is given by P=76+5Q. Each Large Press publisher's supply curve is given by Q=2P-24 Suppose there is only 1 publisher of each type. What is market supply when market price is $60? Enter a number only. Remember, fractions of goods are possible.
