Question

Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All...

  1. 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

  1. What is the inverse demand function for this market?

  1. Calculate the MC function?

  1. Calculate the MR function?
  1. Calculate the profit maximizing level of output for the firm?

  1. Calculate the size of the profit? Show it graphically

  1. Is this industry SR or LR?
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
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. The...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. The market demand for this product is given by the equation: (Kindly answer clearly) P = 1000 – 2Q Also, the market supply equation is given by the following equation: P = 100 + Q. Furthermore, suppose that a representative firm’s total cost is given by the equation: TC = 100 + q2 + q What is the equilibrium quantity and price in this market...
Suppose there is a perfectly competitive industry in Dubai, where all the firms are identical. All...
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 20 AED. The market demand for this product is given by the equation: (Total marks = 5) Q = 25 – 0.25P Furthermore, suppose that a representative firm’s total cost is given by the equation: TC = 50 +4Q + 2Q2 What is the inverse demand function for this market? Calculate the MC function? Calculate...
Suppose a firm sells its product in a perfectly competitive industry in Dubai, where all the...
Suppose a firm sells its product in a perfectly competitive industry in Dubai, where all the firms charge a price of 90 dirhams. The firm’s total costs are given by the following equation: TC = 50 + 10Q + 2Q2 (Kindly answer clearly) a) Calculate the MC function? b) Calculate the MR function? c) Calculate the profit maximizing level of output for the firm? d) Calculate the size of the profit? Show it graphically e) Is this industry SR or...
Suppose in Pakistan, all the firms are identical with identical cost curves which mean industry is...
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 a perfectly competitive market consists of identical firms with the same cost function given by...
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.
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...
4) In the perfectly competitive gadget industry there are 10 firms with identical costs given by...
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)...
The demand equation for a product sold by a competitive firm in UAE is given by...
The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED: Q = 500 – 10P The total cost equation of the firm is given by the following equation: TC = 80 + 20Q + 0.2Q2 Derive the inverse demand function. (1 Point) What is the firm’s MC function? (1/2 Point) What is the firm’s MR function? (1/2 Point) What is the firm’s profit...
The demand equation for a product sold by a competitive firm in UAE is given by...
The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED: Q = 500 – 10P The total cost equation of the firm is given by the following equation: TC = 80 + 20Q + 0.2Q2 a) Derive the inverse demand function. (1 Point) b) What is the firm’s MC function? (1/2 Point) c) What is the firm’s MR function? (1/2 Point) d) What...
Question 3A. (5 Point) CLO3 The demand equation for a product sold by a competitive firm...
Question 3A. (5 Point) CLO3 The demand equation for a product sold by a competitive firm in UAE is given by the following equation and firms sell their product at 100 AED: Q = 500 – 10P The total cost equation of the firm is given by the following equation: TC = 80 + 20Q + 0.2Q2 Derive the inverse demand function. (1 Point) What is the firm’s MC function? (1/2 Point) What is the firm’s MR function? (1/2 Point)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT