(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is cj(yj) = yi2. There are 100 identical tech firms which all behave competitively.What is the individual supply of technological goods and services? What is the market supply of technological goods and services?Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?How much is the total surplus of this economy? Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation? Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why? 2Tech firms produce goods and services from labor and energy. The total cost in dollarsto produce y amount of goods and services for each firm j is c,(v.) = y. There are 100identical tech firms which all behave competitively.A. What is the individual supply of technological goods and services?B. What is the market supply of technological goods and services?C. Suppose the demand curve for these goods is D(p) = 200equilibrium price and quantity sold?D. How much is the total surplus of this economy?E. Now suppose that the industry makes a one-time investment for $K amount ofdollars to innovate in a new technology of production that allows every firm toreduce its cost of production to a 1/4 fraction of the previous cost. What is thenew total surplus of the economy? Who is benefiting the most from the industryinnovation?50p. What is theF. Is it reasonable to assume that in the long-run $K is exactly equal to the size ofthe industry profits? Why?

A perfectly competitive firm is a firm which operates in a perfectly competitive market. And firm…

Answered: ech firms produce goods and services…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

See similar textbooks

Related questions

Question

(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)

Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is c_j(y_j) = y_i². There are 100 identical tech firms which all behave competitively.

What is the individual supply of technological goods and services?
What is the market supply of technological goods and services?
Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?
How much is the total surplus of this economy?
Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation?
Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why?

2
Tech firms produce goods and services from labor and energy. The total cost in dollars
to produce y amount of goods and services for each firm j is c,(v.) = y. There are 100
identical tech firms which all behave competitively.
A. What is the individual supply of technological goods and services?
B. What is the market supply of technological goods and services?
C. Suppose the demand curve for these goods is D(p) = 200
equilibrium price and quantity sold?
D. How much is the total surplus of this economy?
E. Now suppose that the industry makes a one-time investment for $K amount of
dollars to innovate in a new technology of production that allows every firm to
reduce its cost of production to a 1/4 fraction of the previous cost. What is the
new total surplus of the economy? Who is benefiting the most from the industry
innovation?
50p. What is the
F. Is it reasonable to assume that in the long-run $K is exactly equal to the size of
the industry profits? Why?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.