Question 3: A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 60 +5Q², where is the annual output of a firm. The market demand curve is QP = 600-50P, where P is the market price. 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.
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- Suppose a competitive industry has 1,000 identical firms. After years of firms entering and exiting this industry the market is now in a stable equilibrium where all surviving firms are of the optimal size (their fixed costs are exactly such that the long run costs and short run costs are identical). Each firm has a total cost curve of: TC = 2 + 4q + .5q2. This total cost curve implies a marginal cost curve of: MC = 4 + q. a) How much will each firm produce? b) What is the equilibrium price in this market?Assume a competitive industry is initially at its long-run equilibrium, given the inverse market demand and supply functions:P=25000−0.2Qd and p=5000+0.3QsIf all current firms in this market have identical cost structures and produce 50 units at their break-even point:a) How many firms operate in this market at this point? b) What is the profit maximizing quantity produced by each competitive firAssume a competitive industry is initially at its long-run equilibrium, given the inverse market demand and supply functions: P = 25000 − 0.2Qd and P = 5000 + 0.3Qs If all current firms in this market have identical cost structures and produce 50 units at their break-even point: 1- How many firms operate in this market at this point? 2- What is the profit maximizing quantity produced by each competitive firm?
- 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?A representative firm operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,410 − 40P and QS = −390 + 20P. a. If the firm's short-run total cost is given by TC = 50 + 2q + 2q^2 what is its short-run profit-maximizing level of output? b. If the firm's long-run total cost given by TC = 50 + 2q + 2q^2 what is its long-run profit-maximizing level of output?Assume a competitive industry is initially at its long-run equilibrium, given the inverse market demand and supply functions:p = 25000 − 0.2qd ??? Qs = 5000 + 0.3qsIf all firm in this market have identical cost structures:a) How many firms operate in this market at this point? b) What is the profit maximizing quantity produced by each competitive firm?
- Assume a competitive industry is initially at its long-run equilibrium, given the inverse market demand and supply functions: P = 25000 − 0.2Qd and P = 5000 + 0.3Qs If all current firms in this market have identical cost structures and produce 50 units at their break-even point: 1- How many firms operate in this market at this point? 2- What is the profit maximizing quantity produced by each competitive firm? Now, assume that the inverse demand for this product increases to P = 35000 − 0.2Qd, which leads to an entry of and additional number of firms whose cost structures are also identical to those who existed in the market before the increase in the demand. If the new long-run equilibrium price after both changes is 20000 cents: 3- How many new firms entered this market? 4- What is the value of the elasticity of supply at long-run market equilibrium? 5- Draw a fully-labeled graph that demonstrated the above changes at the firm and market levels, highlighting the long-run industry…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.Assume a competitive industry is initially at its long-run equilibrium, given the inverse market demand and supply functions: P = 25000 − 0.2Qd and P = 5000 + 0.3Qs If all current firms in this market have identical cost structures and produce 50 units at their break-even point: Now, assume that the inverse demand for this product increases to P = 35000 − 0.2Qd, which leads to an entry of and additional number of firms whose cost structures are also identical to those who existed in the market before the increase in the demand. If the new long-run equilibrium price after both changes is 20000 cents: a- How many new firms entered this market? b- What is the value of the elasticity of supply at long-run market equilibrium? c- Draw a fully-labeled graph that demonstrated the above changes at the firm and market levels, highlighting the long-run industry supply curve
- Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be Multiple Choice the same as the initial equilibrium price, but the new industry output will be greater than the original output. greater than the initial price, and the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output. the same as the initial equilibrium price, and the industry output will remain unchanged.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.Assume the market for chips is perfectly competitive. The market supply and demand curves for chips are given as follows: supply curve: P = 0.000002Q demand curve: P = 11 - 0.00002Q The short run marginal cost curve for a typical chips factory is: MC = 0.1 + 0.0009Q Determine the equilibrium price for chips. Determine the profit maximizing short run equilibrium level of output for a chips factory. Assuming that all of the chips factories are identical, how many chips factories are producing chips?