The objective of this sheet is to show you how prices and quantities are determined for each market structure and competition styles. It will also allow you to compare different market outcomes The demand for cookies is given by Q=120-P, where Q is the number of boxes of cookies. Assume a constant unit cost of $10, i.e. ATC=MC-$10. You may use the table below to help you understand the steps, but you don't have to. Price 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity Profit Perfect Competitive market: Assume the market was perfectly competitive. a. The long run equilibrium P=....... and Q=.. b. Industry profit=........
The objective of this sheet is to show you how prices and quantities are determined for each market structure and competition styles. It will also allow you to compare different market outcomes The demand for cookies is given by Q=120-P, where Q is the number of boxes of cookies. Assume a constant unit cost of $10, i.e. ATC=MC-$10. You may use the table below to help you understand the steps, but you don't have to. Price 0 10 20 30 40 50 60 70 80 90 100 110 120 Quantity Profit Perfect Competitive market: Assume the market was perfectly competitive. a. The long run equilibrium P=....... and Q=.. b. Industry profit=........
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
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