Illustrate the relationship between marginal cost, a competitive firm’s shortrun supply curve, and the competitive industry supply; explain why supply curves do not exist for firms that have market power.
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Illustrate the relationship between marginal cost, a competitive firm’s shortrun supply curve, and the competitive industry supply; explain why supply curves do not exist for firms that have market power.
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- Discuss to what extent you agree with the following statements. Firms facing loss in short run may continue to produce in a competitive market structure.suppose there are two technologies for producing steel. under technology a, a firm’s short-run total cost curve is 1 2 ( ) 100 10 2 a stc q q q (for which ( ) 100 a smc q q ), and using technology b it is 2 () 2 6 b stc q q ( () 4 b smc q q ). assuming there are 100 firms using technology a and 400 using b, determine the short-run market supply curve.The market for calculators is a perfectly competitive industry facing typical U-shaped ATC, AVC, and MC cost curves. Demand is linear and has a downward slope. The industry is filled with many homogeneous firms. Using a side-by-side graph that depicts both the market (on the left) and a representative firm (on the right), graphically depict what will happen to (a) P (price), (b) Q (market output), (c) q (representative firm's output), and (d) π (representative firm's profit) when the market moves from the original short run equilibrium (SRE) with positive profits to a new long run equilibrium (LRE).
- Suppose you are given the following information about a particular industry Q(d) = 6500 - 100P Market Demand Q(s) = 1200P Market Supply C(q) = 722 + q^2/200 Firm total cost function MC(q) = 2q/200 Firm marginal cost function Assume that all firms in this industry are identical and that the market is characterized as perfect competition. Find the equilibrium price, the equilibrium quantity, the output supplied by the firm, and the profit of each firm. Would you expect to see entry into or exit from the industry in the long run? What effect would this entry or exit have on market equilibrium? What is the lowest price at which each firm would stay and sell its output in the long run? Is profit positive, negative or zero at this price? What is the lowest price at which each firm would sell its output in the short run? Is profit positive, negative, or zero at this price?The wireless data industry, in which firms compete vigorously against one another for customers, is not considered a perfectly competitive industry. You can choose multiple answers Which of the following industry characteristics make the wireless data industry a non-perfectly competitive industry? A.For wireless firms, long-run economic profits are possible. B.Substantial barriers to entry prevent new firms from entering the wireless market. C.The market is dominated by a few very large wireless firms. D.Wireless firms provide a homogeneous product.Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- In a competitive market, the long-run demand is given by P = 20 - (0.01)*q Firms in the industry have as their cost structure the expression C = q3 - 5q2 + 10q. Determine: (a) equilibrium price b) Quantity produced-sold of the firm. c) What quantity is traded in the market? d) Over what time period does this market work? (short or long term?) e) What is the profit of the individual firm? f) What will be the behavior of the individual firm, will it exit or stay in the market?In a competitive market characterized by increasing costs, the long-run industry supply curve gives the minimum long-run average cost of production at various levels of industry output. long-run industry supply curve gives the long-run marginal cost of production at various levels of industry output. long-run industry supply curve is upward sloping. both a and b all of the aboveDiscuss/explain the nature and characteristics of various market structures and propose how the firm and industry derive equilibrium in both the short and long runs.
- Consider a competitive industry with a market demand curve of P = 120 - Q, where P is market price and Q is the quantity demanded in the market. In the short run there are 4 firms in the industry, and each firm has a total cost function of TC = 144 + q^2, where q is output of the individual firm. The short-run industry supply curve Qs is?Assume agricultural products are identical and there are many sellers and buyers of agriculture products: State the profit-maximizing condition for each seller of agricultural products. Graphically, it shows the market equilibrium of the industry and a seller where economic profits equal zero. Please include marginal revenues, demand curve, price, and quantity at the equilibrium. From part b above, if the number of buyers increases, show the new short-run equilibrium for a seller and the industry as a whole.Assume that the market determined price is $10 in a perfectly competitive industry. A firm is currently producing 100 units of output. Average total cost is $8 while marginal cost is $8 and average variable cost is $6. Is the firm producing the profit-maximizing level of output? Why or why not? If not, what should the firm do?
