Pp3 There are two types of firms in a short-runequilibrium of a Pure and Perfect Competitionmarket: Type 1 and Type 2 When the firmsproduce the quantity "q", the firms of type 1 facethe total cost that is defined by: TCX(q) =q2+16q2+16in which the Fixed cost (TFCX) equals 12. Thevariable cost of firms 2 is defined by: TVCY(q) =Зq2+3and the Fixed cost (TFCY) equals 24. In themarket, there are 300 firms of each type.Question:A- Find the total supply function if the marketprice, p, equals 5.B- The market demand is given by this equation:D(p) = 2700 – 100p. If p = 9, find the quantityand profit of each firm.

A perfectly competitive market refers to a market in which there are many firms that sell identical…

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Pp3

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

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 1E

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