Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2 The market demand curve for this product is: Qd= 120 −P There are 9 firms in the market. a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve. b) Give the equation for each firm’s supply curve. the average-total-cost curve at its minimum? What is marginal cost and average total c) Give the equation for the market supply curve for the short run in which the number cost at that quantity?
Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2 The market demand curve for this product is: Qd= 120 −P There are 9 firms in the market. a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve. b) Give the equation for each firm’s supply curve. the average-total-cost curve at its minimum? What is marginal cost and average total c) Give the equation for the market supply curve for the short run in which the number cost at that quantity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2
The market
There are 9 firms in the market.
a) What are each firm’s: fixed cost, variable cost, marginal cost, and
b) Give the equation for each firm’s supply curve.
the average-total-cost curve at its minimum? What is marginal cost and average total
c) Give the equation for the market supply curve for the short run in which the number
cost at that quantity?
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