Suppose the celery industry is competitive. The (inverse) market demand schedule is: p=1000.1QD The (inverse) market supply schedule is: Find the following in equilibrium. a. Competitive market output level = b. Competitive market price = $ MC = 4+0.2Qs units

Suppose the celery industry is competitive. The (inverse) market demand schedule is: p=1000.1QD The (inverse) market supply schedule is: Find the following in equilibrium. a. Competitive market output level = b. Competitive market price = $ MC = 4+0.2Qs units

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the celery industry is competitive. The (inverse) market demand schedule is:
p= 1000.1QD
The (inverse) market supply schedule is:
Find the following in equilibrium.
a. Competitive market output level =
b. Competitive market price = $
c. Consumer surplus = $
d. Producer surplus = $
MC = 4+0.2Qs
units

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Step 1: Define the perfectly competitive market

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Step 2: Calculate Equilibrium Price and Quantity.

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Step 3: Calculate CS and PS

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