Question

8. Each firm in a monopolistically competitive industry faces inverse demand p= 40−n−4q, where n represents...

8. Each firm in a monopolistically competitive industry faces inverse demand p= 40−n−4q, where n represents the number of firms in the industry. Firms have a constant marginal cost of $6 and a fixed cost of $25. How many firms are in this industry in the long run?

(a) 1

(b) 4

(c) 12

(d) 14

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A monopolistically competitive firm faces the inverse demand curve P = 100 – Q,and its marginal...
A monopolistically competitive firm faces the inverse demand curve P = 100 – Q,and its marginal cost is constant at $20. The firm is in long-run equilibrium. a.Graph the firm's demand curve, marginal revenue curve, and marginal cost curve. Also, identify the profit-maximizing price and quantity on your graph. b.What is the value of the firm's fixed costs? c.What is the equation for the firm's ATC curve? d.Add the ATC curve to your graph in part a please actually graph...
A ice cream parlous in a monopolistically competitive market faces a demand curve given by P...
A ice cream parlous in a monopolistically competitive market faces a demand curve given by P = 12 – 0.5Q. Marginal revenue of MR = 12 – Q. The variable costs of producing ice cream are VC = 2Q and so the marginal costs are constant at $2. If the ice cream parlor is in a long-run equilibrium, what must its fixed costs be?
A typical firm in a monopolistically competitive industry faces the following demand and total cost equations...
A typical firm in a monopolistically competitive industry faces the following demand and total cost equations for its product. Q = 20 – ( P/ 3 ) a. What is the firm’s short-run, profit-maximizing price and output level? b. What is the firm’s economic profit?
​​​​​ A monopolist faces an inverse demand curve P(Q)= 115-4Q and cost curve of C(Q)=Q2-5Q+100. Calculate...
​​​​​ A monopolist faces an inverse demand curve P(Q)= 115-4Q and cost curve of C(Q)=Q2-5Q+100. Calculate industry output, price, consumer surplus, industry profits, and producer surplus if this firm operated as a competitive firm and sets price equal to marginal cost. Calculate the dead weight loss sue to monopoly.
Suppose that in the short-run market demand in a monopolistically competitive industry that is characterized by...
Suppose that in the short-run market demand in a monopolistically competitive industry that is characterized by firms with identical cost functions rises. How does this short-run increase in demand affect the monopoly power of any individual firm in the long-run?
16) Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is...
16) Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is a) more elastic because there are many close substitutes for the product of a monopolistically competitive firm. b) less elastic because monopolistically competitive firms produce similar, but not identical, products. c) just as elastic because there are many sellers in both markets. d) more elastic because in the long run, the demand curve is tangent to the firm's average total cost curve.
Consider a competitive industry with n identical firms each with marginal cost given by MC=8+8q and...
Consider a competitive industry with n identical firms each with marginal cost given by MC=8+8q and average variable costs given by AVC=8+4q where q is firm output. Market demand is given by QD (P)=112-P. (i)Calculate the equilibrium price as a function of n: P(n) (ii) What is the price and the numerical value of the residual demand elasticity when n=5? (iii) What is the price elasticity of demand for the market? Why is the residual firm demand’s elasticity so much...
Consider a monopolist that faces an inverse demand for its product given by p=600-4Q The firm...
Consider a monopolist that faces an inverse demand for its product given by p=600-4Q The firm has a cost function C(Q)=9Q2+400 What is the profit-maximizing price for this monopolist? Provide your answer to the nearest cent (0.01)
A monopolistically competitive firm faces the following demand schedule for its product: Price ($) 30 27...
A monopolistically competitive firm faces the following demand schedule for its product: Price ($) 30 27 24 21 18 15 12 9 6 3 Quantity 3 6 9 12 15 18 21 24 27 30 The firm has total fixed costs of $9 and a constant marginal cost of $3 per unit. The firm will maximize profit with a. 30 units of output. b. 9 units of output. c. 15 units of output. d. 21 units of output.
Suppose a representative firm in a perfectly competitive industry has the following total cost of production...
Suppose a representative firm in a perfectly competitive industry has the following total cost of production in the short run: TC = Q3 - 60Q2 + 3000Q. a) What will be the long run equilibrium quantity for the firm? What will be the long run equilibrium price in this industry? b) If the industry demand is given by QD = 12400 - 4P. how many firms will be active in the long- run equilibrium? c) Suppose the firm faces a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT