I need help with part d) and e) only! PROBLEM (4) The market for plastic toys is perfectly competitive, and it is composed of many identical firms,each with the total cost function TC(q) = ½ q² + 40q + 2,450(a) What is the short run shut down price and the long run entry/exit price for this market?(b) Carefully draw the short run supply graph of an individual firm, and separately the long run aggregate(market) supply graph for this industry.(c) What is the optimal quantity to produce for the firm and the corresponding net profit, if the market price is (i)%3D$30? (ii) $70?Now, suppose in addition that the market demand is Q = 18,000 - 100p.(d) In the long run equilibrium, what is the market price and quantity? How many units does each firm in themarket produce, and what is its net profit? How many firms are there in the long run equilibrium?(e) Suppose the government imposes a $14 per unit tax on plastic toys. Re-answer part (d)%3D

Perfect competition(PC) is that market structure where there are infinite number of buyers and…

Now, suppose in addition that the market demand is Q = 18,000 - 100p. (d) In the long run equilibrium, what is the market price and quantity? How many units does each firm in the market produce, and what is its net profit? How many firms are there in the long run equilibrium? (e) Suppose the government imposes a $14 per unit tax on plastic toys. Re-answer part (d)

Now, suppose in addition that the market demand is Q = 18,000 - 100p. (d) In the long run equilibrium, what is the market price and quantity? How many units does each firm in the market produce, and what is its net profit? How many firms are there in the long run equilibrium? (e) Suppose the government imposes a $14 per unit tax on plastic toys. Re-answer part (d)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 6E

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