Suppose that there are two types of firms in a perfectly competitive market. Firms of type A have costs given by CA(q) = 30q2 + 10q. Firms of type B have costs given by CB(q) = 50q2 + 10. ( dCA dq = 60q + 10 and dCB dq = 100q). There are 60 firms of type A and 100 firms of type B. Derive the individual firm supply functions for each type of firm and What is the range of prices in which some firms produce but others do not? Are there prices at which no firms produce Why?
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Suppose that there are two types of firms in a
of type A have costs given by CA(q) = 30q2 + 10q. Firms of type B have costs given by CB(q) = 50q2 + 10.
( dCA
dq = 60q + 10 and dCB
dq = 100q). There are 60 firms of type A and 100 firms of type B.
Derive the individual firm supply functions for each type of firm and What is the range of prices in which some firms produce but others do not? Are there prices at which no firms produce Why?
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- Suppose that there are two types of firms in a perfectly competitive market. Firms of type A have costs given by CA(q) = 30q2 + 10q. Firms of type B have costs given by CB(q) = 50q2 + 10. ( dCA dq = 60q + 10 and dCB dq = 100q). There are 60 firms of type A and 100 firms of type B. Derive the individual firm supply functions for each type of firmSuppose that each firm in a competitive industry has the following identical costs:Total cost: TC = 25+0.25Q2,where Q is an individual firm’s quantity produced.The market demand curve for this product is as follow:Demand: P=60-0.095Q,where P is the price and Q is the total quantity of the good. Currently. (i) Identify each firm’s fixed cost, variable cost, and its marginal cost.(ii) Suppose that there are 10 firms in the market. Construct the market supply function in the short run. Determine the equilibrium price and quantity. (Hint: If each firm’s supply function is Qi= a+bP then the market supply Qm can be the aggregated supply at each price as Qm = Q1+Q2+Q3+...+Qi where Qi is each firm’s supply function.)Can you help with parts d,e and f please? A perfectly competitive firm has the following total cost function: TC = 4,500 + 2q + .0005q2 where TC is total cost in dollars and q is the quantity of output produced. a. Assume this perfectly competitive market consists of 800 firms with cost structures identical to the one above. What is the equation for the market supply curve? Assume the market demand curve is: Qd = 5,600,000 – 400,000P where Qd is the quantity demanded in the market and P is the commodity’s price in dollars. b. What is the market’s equilibrium price? c. Assuming the market is in equilibrium, using marginal revenue and marginal cost determine the firm’s profit-maximizing quantity of output? What does the profit-maximizing firm’s total economic profit equal? Assume the total cost function above: TC = 4,500 + 2q + .0005q2 is associated with the short-run total cost function that corresponds to the minimum point on the long-run average total cost curve and this is a…
- Suppose that there are two types of firms in a perfectly competitive market. Firms of type A have costs given by CA(q) = 30q2 + 10q. Firms of type B have costs given by CB(q) = 50q2 + 10. ( dCA dq = 60q + 10 and dCB dq = 100q). There are 60 firms of type A and 100 firms of type B. (A). Derive the individual firm supply functions for each type of firm and pricesA market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2)QD. a) What is the equilibrium price set by the dominant firm? Calculate the total market demand at the price found. b) How much will the competitive fringe supply to the market at the price found in question 2(a)? c) How much will the dominant firm supply to the market at the price found in question 2(a)? d) Show the above answers graphically.A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5)P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2)QD. What is the equilibrium price set by the dominant firm? Calculate the total market demand at the price found in question 2(a). How much will the competitive fringe supply to the market at the price found in question 2(a)? How much will the dominant firm supply to the market at the price found in question 2(a)? 5. Show the above answers graphically.
- Suppose you are given the following information about a particular industry: QD = 6500 – 100P Market Demand QS = 1200P Market Supply TC(q) = 722 + q2/200 Individual firm’s total cost function MC(q) = q/100 Individual firm’s marginal cost function Assume that all firms are identical and that the market is characterized by perfect competition. Find an individual firm’s supply curve. How many firms are there currently in the market? Find the equilibrium price and equilibrium market quantity. How much is output supplied by each firm, and how much profit does each firm make in the short run? Would you expect to see entry into or exit from the industry in the long run? Explain. What effect will entry or exit have on the market equilibrium? Find the long-run equilibrium price, the number of firms, and the amount of output each firm produces in the long run.JointJuice produces a prepackaged joint support supplement for relief of joint pain with 180 tablets per bottle and operates in a perfectly competitive market. Basically, all the firms in this competitive market have technologies (production and cost conditions) that are the same as JointJuice’s. Suppose JointJuice’s total cost function is given by the following where q is JointJuice’s quantity of packages per day: C(q) = 250 + 6q + 0.1q^2 The market demand function for the output in this market is given by: Q = 1848 - 2P If there are 20 identical firms in this industry, find the market equilibrium price for the prepackaged supplements. Calculate JointJuice’s optimal output level and profits given the market price for the product. If JointJuice is typical of the firms in this industry calculate the firm’s long-run equilibrium output, price, and profit level. Suppose the situation changes. JointJuice has its plant in Portland Oregon. The local government passes a new tax on…A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) Calculate the total market demand at the price found in question (a). c) How much will the competitive fringe supply to the market at the price found in question (a)? d) How much will the dominant firm supply to the market at the price found in question (a)? Show the answers graphically.
- Suppose Firm X is a dominant firm in a market where the market demand is Q = 1200 -2p. Once Firm X sets its price, those small competitors set their prices a little lower so that they can always sell up to their capacity. Assume the small firms’ combined capacity is 100 units. Further assume Firm X’s marginal cost is 50. Answer the following questions. Let Q^D be the quantity produced by the dominant firm. Write down the residual demand function faced by Firm X. (Hint: Think about how Q and Q^D are related.) Find Firm X’s profit-maximizing price.A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) Calculate the total market demand at the price found in question (a). Show the answers graphically.Suppose there are in total 3 firms in the market. Firm 1 decides its output first, then Firm 2 and Firm 3 decide their outputs simultaneously. The inverse demand function is p = 20-3q, where q = q1+q2+q3, and each firm's cost function is ci(qi) = 5qi2. What is the quantity that Firm 1 produces? Round your answer to 2 decimal points.