Question

Each of the 10 firms in a competitive market has a cost function of c=10+q^2 The...

Each of the 10 firms in a competitive market has a cost function of c=10+q^2

The market demand function is Q=420-p

Determine the equilibrium price, quantity per firm, and market quantity

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

the supply curve of an individual firm is equal to the marginal cost function.

MC is a change in the total cost and a change in function found by differentiation.

MC=dc/dq=2q

MC=2q

P=2q ............ the inverse supply curve

2q=P

q=0.5P ......... the normal supply function

market supply is

Q=10*q=5P

Q=5P .......... the market supply

equilibrium is at Qd=Qs

420-P=5P

6P=420

P=70

the equilibrium price is $70

quantity each firm produce at MC=P

2q=70

q=35 units

market quantity is

Q=420-P=420-70=350

the equilibrium price is $70, the quantity each firm is 35 units, the market quantity is 350 units.

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. Each of the 10 firms in a competitive market has a cost function of C...
a. Each of the 10 firms in a competitive market has a cost function of C = 25 + q^2. The market demand function is Q = 120 - p. Determine the equilibrium price, quantity per firm, and market quantity. b. Given the information in part a, what effect does a specific tax of $2.40 per unit have on the equilibrium price and quantities? Suppose that market demand for a good is Q = 480 - 2p. The marginal cost...
8) Each of the 10 firms in a competitive market has a cost function of C=25+q2,soitsmarginal...
8) Each of the 10 firms in a competitive market has a cost function of C=25+q2,soitsmarginal costisMC=2q.Themarket demand function is Q d = 120 - p . Determine the equilibrium price quantity per firm, and market quantity.
Each firm in a competitive market has a cost function​ of: Upper C equals 36 plus...
Each firm in a competitive market has a cost function​ of: Upper C equals 36 plus q squaredC=36+q2​, so its marginal cost function is MC equals 2 qMC=2q. The market demand function is Upper Q equals 48 minus pQ=48−p. Determine the​ long-run equilibrium​ price, quantity per​ firm, market​ quantity, and number of firms. The output per firm is nothing. ​(round your answer to the nearest​ integer)
The long run cost function for each (identical) firm in a perfectly competitive market is  C(q) =...
The long run cost function for each (identical) firm in a perfectly competitive market is  C(q) = q1.5 + 16q0.5 with long run marginal cost given by LMC = 1.5q0.5 + 8q-0.5, where  q is a firm’s output. The market demand curve is  Q = 1600 – 2p, where Q  is the total output of all firms and p  is the price of output. (a) Find the long run average cost curve for the firm. Find the price of output and the amount of output...
The total cost function for each firm in a perfectly competitive industry is TC(y)=100+8y^2 . Market...
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.
3: For each (identical) firm in a perfectly competitive market the long-run cost function is C(q)...
3: For each (identical) firm in a perfectly competitive market the long-run cost function is C(q) = q1.5 + 16q0.5 with long run marginal cost being LMC = 1.5q0.5 + 8q-0.5, where q = firm’s output. Market demand curve: Q = 1600 – 2p, where Q = total output of all firms, and p = price of output. (a) For the firm find the long run average cost curve , as well as the price of output and the amount...
The representative firm has a cost function of c(q) = 300 + 3q2 Market Demand is...
The representative firm has a cost function of c(q) = 300 + 3q2 Market Demand is given by P = 280 — 0.5Q Use this information to answer the following 3 problems: 1) Perfect Competition in the short-run: If there are 23 identical firms all profit maximizing, calculate equilibrium market price P* and Quantity Q*, individual firm optimal q*, and profits for the individual firm. [4 marks] 2) Perfect Competition in the long-run: Given the profits in (1), determine the...
The market demand function for a good is given by Q = D(p) = 800 −...
The market demand function for a good is given by Q = D(p) = 800 − 50p. For each firm that produces the good the total cost function is TC(Q) = 4Q+ Q^2/2 . Recall that this means that the marginal cost is MC(Q) = 4 + Q. Assume that firms are price takers. (a) What is the efficient scale of production and the minimum of average cost for each firm? Hint: Graph the average cost curve first. (b) What...
A competitive industry currently consists of 50 identical firms. An individual firm’s total cost function is...
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?
A perfectly competitive firm has the following cost function: C(q) = q^2 + 5q + 20...
A perfectly competitive firm has the following cost function: C(q) = q^2 + 5q + 20 a. If the P = 25, what level of q should the firm produce to maximize its profits? How much profit does the firm earn at this level of q? b. Solve for the firm’s supply function. Illustrate the supply function on a graph. c. If there are 10 identical firms in this market, what is the industry supply function?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT