A (typical) firm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=588 +8q+3q², FC 396 9>2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $396 (already included in the TC equation above). The TC equation generates minimum average costs of $92 (per unit) at q = 14. Questions 19 through 22 concern this firm and this industry. 19. You are told that in the short run there are 400 firms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P=908-135Q where P is the price per unit and Q is the number of The equilibrium price in this industry in the short run is: units demanded per day. F) $105 A) $86 G) $108 B) $92 H) $110 C) $95 I) $111 D) $98 J) none of the above 20. This profit earned by each firm in this industry in this E) $101 1'1
A (typical) firm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=588 +8q+3q², FC 396 9>2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $396 (already included in the TC equation above). The TC equation generates minimum average costs of $92 (per unit) at q = 14. Questions 19 through 22 concern this firm and this industry. 19. You are told that in the short run there are 400 firms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P=908-135Q where P is the price per unit and Q is the number of The equilibrium price in this industry in the short run is: units demanded per day. F) $105 A) $86 G) $108 B) $92 H) $110 C) $95 I) $111 D) $98 J) none of the above 20. This profit earned by each firm in this industry in this E) $101 1'1
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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