Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 22, Problem 3CQ
To determine
Normal profit of perfect competitive market in the long run.
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The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=393-7P. Market Supply is given by Q=3P-9.
Suppose 55 units are bought to the market. Consider the Marginal Cost of production for these 55 units. What is the maximum Marginal Cost of production of these 55 units? Enter a number only, do not include the $ sign.
Hint: 55 doesn't have to be the market quantity.
Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds, the marginal cost of sugar is 30 cents per pound. Is the farmer maximizing profit? If not, should the farmer produce more or less sugar?
The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,
including firms, is possible.
We have identical firms, each with a Total Cost curve of TC=257+g^2 and Marginal Cost curve
MC=2q.
Market demand is Q=797-2P.
If the Fixed Cost increases by $10, what is the short-run market price?
Chapter 22 Solutions
Economics: Private and Public Choice (MindTap Course List)
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