Consider an industry with 60 firms. Using this information, please: a. Find short-run industry supply for 60 firms, each with TC = 5q + 15q2 + 20. b. Calculate (price elasticity of supply) for firm at q = 3 c. Calculate (price elasticity of supply) for industry at Q = 180 d. Find equilibrium (p, Q, q) if Qd = 25 – 5p

1. If the average cost function of a firm producing a good in perfectly 40 competitive industry is AC = 2Q +9+, where Q is output level and the industry price is given to be P = $25. a) Derive the short-run supply curve for this firm b) Calculate the optimal level of production by this firm. c) Find the maximum profit of the firm. d) Should the firm produce in the short run or shut down? Justify.

Which of these would be associated with perfect competition in a market? Question 7 options: a) a market in which firms sell their product at the market equilibrium price b) a market in which firms are impacted significantly by the actions of the other firms c) a market with many sellers, with each producing a similar though not identical version of a product d) a market with high costs of entry into the industry The long-run industry supply curve is elastic in the long run. Question 14 options: a) flatter; more b) c) d) steeper; more flatter; less steeper; less A price taker is a firm that: Question 17 options: a) b) c) has no control over the market price. has the ability to control the price it charges. takes the maximum price that each and every consumer is willing to pay. d) takes bribes. than the short-run industry supply curves because supply is For a perfectly competitive firm, total revenue is equal to: Question 20 options: a) b) d) marginal revenue x quantity. marginal cost x…

Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. PRICE (Dollars per pound) 100 90 80 70 80 50 40 30 20 10 0 0 125 250 375 500 825 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Demand Because you know that competitive firms earn Supply (10 firms) True Supply (15 firms) If there were 10 firms in this market, the short-run equilibrium price of rhodium would be $ would . Therefore, in the long run, firms would False Supply (20 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…