Question

- 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 +
2Q ^{2}**

- What is the inverse demand function for this market?

- Calculate the MC function?

- Calculate the MR function?

- Calculate the profit maximizing level of output for the firm?

- Calculate the size of the profit? Show it graphically

- Is this industry SR or LR?

Answer #1

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 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 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 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
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 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 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 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 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 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)...

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