If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Qi What is the short-run industry supply function? (where lowercase subscript "i" is for the firm and uppercase "I" is for the Industry) P = 100 +100QI P = 10 +100QI P = 10 +10QI P = 10 +QI

If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Qi What is the short-run industry supply function? (where lowercase subscript "i" is for the firm and uppercase "I" is for the Industry) P = 100 +100QI P = 10 +100QI P = 10 +10QI P = 10 +QI

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 17SQ

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If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Qi What is the short-run industry supply function? (where lowercase subscript "i" is for the firm and uppercase "I" is for the Industry)
Industry X has a market demand curve given by the equation P = 100 – Q/100, where P is the market price, and Q is industry-wide output.100 perfectly competitive firms currently operate in industry X. Each of these firms has a total cost function given by TC = 100 + 10q + q2, where q is the output of the individual firm, and thus MC = 10 + 2q. (a) Would any of the firms in industry X ever shut down in the short run? If so, what is the cut-off price required for firms to operate – Shut-down price? (b) What is the market output in the short run? What is the market price? How much do individual firms produce? Do firms earn economic profits? [Hint: you will first need to work out the industry supply curve.] *Note: when finding answers for this question online, they wrote to first find the AVC function for part a but I don't understand how they found that AVC function first- any help would be much appreciated!
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