Question

A competitive industry currently consists of 50 identical firms. An individual firm’s total cost function is given by TC = 1⁄2 q2 + 450 and its marginal cost MC = q, where q is the quantity supplied by the firm. Market demand is given by Q = 4000 - 5P, where Q is the market quantity demanded and P is the market price. In the long run market equilibrium, how much will each firm produce?

Answer #1

Suppose that each firm in a competitive industry has the
following cost curves: Total cost: TC = 32 + 1⁄2 Q2; where Q is the
individual firm’s quantity produced. MC=Q. Assume the market price
is $14 per unit. If the market price falls, how much will each firm
produce in the long run? a. 32 b. 8 c. 11 d. 64

Suppose in Pakistan, all the firms are identical with identical
cost curves which mean
industry is perfectly competitive. Now please consider this
following information about the
industry: A representative firm’s total cost is given by the
equation TC = 100 + q2 + q where
q is the quantity of output produced by the firm. You also know
that the market demand for
this product is given by the equation P = 1000 – 2Q where Q is the
market...

Suppose there is a perfectly competitive industry in Dubai,
where all the firms are identical. All the firms in the industry
sell their products at 100 AED. The market demand for this product
is given by the equation: (Kindly solve
clearly)
Q = 1000 – 4P
Furthermore, suppose that a
representative firm’s total cost is given by the equation:
TC = 1250 +
2Q2
What is the inverse demand function for this market?
Calculate the MC function?
Calculate the MR...

Suppose the market for wheat consists of 500 identical firms,
each with the following total and marginal cost functions:
TC(q) = 90,000 + 0.00001q2
MC(q) = 0.00002q
where q is measured in bushels per year. The market demand for
wheat is Q = 90,000,000 – 20,000,000P
a. Find the market equilibrium price and quantity.
b. Find the profit-maximizing quantity of production for each
firm and the profit at that quantity.

Question 3:
A competitive industry consists of identical 100 producers,
all of whom operate with the identical short-run total cost curve
TC(Q)=40+2Q2TC(Q)=40+2Q2, where QQ is the annual output of a firm.
The market demand curve is QD=300−50PQD=300−50P, where PP is the
market price.
What is the each firm's short-run supply curve?
What is the short-run industry supply curve?
Determine the short-run equilibrium price and quantity in this
industry.

Suppose that the perfectly competitive for market for milk is
made up of identical firms with long-run total cost functions given
by:
TC = 4 q3 - 24 q2 + 40 q
Where, q = litres of milk. Assume that these cost functions are
independent of the number of firms in the market and that firms may
enter or exist the market freely.
If the market demand is :
Qd = 8,000 - 160 P
1. What is the long-run...

Suppose the market for wheat consists of 500 identical firms,
each with the following total and marginal cost functions: TC(q) =
90,000 + 0.00001q2, where q is measured in bushels per year. The
market demand for wheat is Q = 90,000,000 – 20,000,000P
Find the market equilibrium price and quantity.
Find the profit-maximizing quantity of production for each firm
and the profit at that quantity.

The total cost function for each firm in a perfectly competitive
industry is TC(y)=100+8y^2 . Market demand is q=2000-(market price)
.
Find: the long run equilibrium firm quantity (y), market
quantity (q), amount of firms, and price.

4) In the perfectly competitive gadget industry there are 10
firms with identical costs given by C = 500 + 20q + q2, none of
which believes it can alter price. Marginal cost is given by the
function MC=20 + 2q.
a. Find the shutdown point of one of these firms. Be sure to
explain what you are doing. (5 points)
b. If price equals $400 what is the profit maximizing level of
output for an individual firm? (5 points)...

Suppose a perfectly competitive market consists of identical
firms with the same cost function given by
C(q)=2q2 +3q + 400
The market demand is
QD= 5800 - 4p
How many firms will operate in this market in the long
run?
Round your answer to the nearest whole number.

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