Suppose the demand function for widgets is Q(p) = 60 – p, and all firms that produce widgets have total cost function C(q) = 16 + q^3
.
a) Suppose that the market is perfectly competitive and there is free entry and exit. All firms that enter use the same technology. A firm that decides to stay out of the market can avoid paying the fixed cost and has a profit of zero. Solve for the long-run competitive equilibrium. What is the long-run equilibrium price? What is the quantity produced by each firm? How many firms will produce in this market?
b) What is the consumer surplus under the perfectly competitive model?
Q: What is an isoquant? What is a marginal product? What is the technical rate of substitution? Explain...
A: Utility: The utility is the power or ability of the goods and services that satisfy the consumers wa...
Q: q22-Ginger's utility function is U(x,y)=2x^2y. She has income I=2000 and faces prices Px=$20 and Py=...
A: Budget line equation can be derived as follows.
Q: Explain why it is unrealistic to regulate a natural monopoly for a price and quantity that maximizes...
A: Natural monopoly:The natural monopoly is the market structure, which is characterized by high fixed ...
Q: A generalization of the fisher effect that can be applied to other variables is the relationship bet...
A: It is given that,According to the fisher’s effect, the real price growth is equal to the difference ...
Q: Unemployment and the Labor ForceALFRED Il Cvillan Labor Force Participation Rate: 16 to 19 years Vin...
A: Hi, you will be able to see exact value of peaks if you go to AlFred site and use the following path...
Q: Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in th...
A: Since you have not mentioned the sub-parts you need help with and since we are entitled to answer up...
Q: Does the fact that your bank keeps only a fraction of your account balance in reserve worry you? Why...
A: Step 1The bank is a financial institution that focuses on accepting the deposit and making progress ...
Q: The tables show the spending and revenue for Littleland in 2010. Use the tables and other informatio...
A: Little land Borrow:Little land Borrow can be calculated as follows:
Q: 1. The Fed's job in manipulating monetary policy is made harder by the fact that: A) monetary author...
A: Answer 1: The correct option is C. Reason:The central bank of the U.S. (fed) aims at manipulating th...