The following relations describe monthly demand and supply for a wheat Qp = 32 - 4 Qs = ÷P- 16 where P is the price (in cents) per pound and Q is the quantity (in millions) of pounds. (a) What is the equilibrium price and output level? Suppose that wheat industry is a perfectly competitive industry consisting of a large number of identical irms. For a typical firm, the cost function is TC = 100 + 1000q². (b) Identify the marginal revenue of a typical firm in the industry. (c) Find the profit maximizing level of output produced by a firm. (d) If all firms are profit maximizing, then how many firms can operate in this industry?

The following relations describe monthly demand and supply for a wheat Qp = 32 - 4 Qs = ÷P- 16 where P is the price (in cents) per pound and Q is the quantity (in millions) of pounds. (a) What is the equilibrium price and output level? Suppose that wheat industry is a perfectly competitive industry consisting of a large number of identical irms. For a typical firm, the cost function is TC = 100 + 1000q². (b) Identify the marginal revenue of a typical firm in the industry. (c) Find the profit maximizing level of output produced by a firm. (d) If all firms are profit maximizing, then how many firms can operate in this industry?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...

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