Answered: The short-run market demand and supply…

The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q Supply: P=5+0.05Q Marginal cost: -20+4Q a) Find short run level of output.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Related questions

Q: If the long run supply curve for a perfectly competitive market is perfectly elastic what can we…

A: A perfectly competitive market structure is the market structure in which there are large number of…

Q: Wheat is produced in a perfectly competitive market. Suppose the market demand for wheat increases.…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q…

A: Given data: Demand: P=40-0.25QSupply: P=5+0.05QMarginal cost: -20+4Q

Q: Assume a firm has the cost function given by q? c(q) * - + 11q +5. 48 Answer the following: Write…

A: Given Cost function C(q)=q348-q24+11q+5 .... (1)

Q: Blivets and p is measured in dollars. We Get Total revenue(measured in thousands of dollars)…

A: NOTE : Since there are multiple sub parts of the question, we shall solve the first three sub parts…

Q: In a perfectly competitive market, assume the market price is $10 per unit, and the…

A: Answer; The profit amount at the profit-maximizing quantity is $90.

Q: If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000…

A: A firm faces different shut down constraint in different time periods such that in short-run or in…

Q: A firm operates in a perfectly competitive market. The market price of its product is 4 birr and the…

A: Perfect competition is the form of market with a large number of buyers and sellers, selling…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Q: irm A works in a competitive market and earns 0 profit for the profit-maximizing quantity level.…

A: In the perfectly competitive market, firm produces where the P =MC. Zero economic profit implies…

Q: Consider a perfectly competitive market with similar fırms. Assume the total demand in the market is…

A: Given Market demand P=66-5Q and firm total cost TC=q3-2q2+2q In long-run, the firm produces Q…

Q: Illustrate and explain how the short-run supply curve of a price-taking firm is determined.

A: In a price taking firm, the demand curve is a straight line parallel to x axis which is equal to…

Q: Consider the following cost information for a firm that operates in a perfectly competitive market.…

A: Marginal cost is calculated by dividing, the change in total cost by the change in quantity. The…

Q: Consider the unit cost curves of a single firm in competitive market. The market price is X and the…

A: A perfectly competitive firm in short run produces at P=MC, i.e., at the intersection point of price…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Marginal cost is the cost incurred when an additional unit of output is produced by the firm. In…

Q: Construct a short-run supply schedule for the firm and indicate the profit or loss incurred at each…

A: Given information

Q: The long-run supply curve of a perfectly competitive industry with increasing costs is: a)…

A: Perfectly competitive industry is the one where there are large number of buyers and sellers with…

Q: Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his…

A: "A perfectly competitive market structure is the one which consists of many buyers and sellers and…

Q: Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of…

A: MC= $150+ 0.005Q For the supply curve, MC=Price So, P=150+ 0.005Q Q=200P-30,000 This is the short…

Q: Total Cost Variable Cost Quantity (dollars) (dollars) $800 $0 100 1,260 200 1,660 300 2,560 400…

A: In a perfectly competitive market, firms produce identical goods. Price is constant and equal to…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfect competition market refers to a market structure that has many sellers who sell identical…

Q: A perfectly competitive industry has a large number of potential entrants. Each firm has an…

A: Under perfect competition, there are a large number of firms who sell identical products. The market…

Q: Draw a short-run supply curve for a competitive market withidentical firms

A: ANS The supply curve shows how much quantity of output a firm supplies for a given price level. It…

Q: Suppose the short-run cost function of a perfectly competitive firm is: C(q)= 193/8q - 1/2q2+…

A: According to the question given that the short run cost function as C(q) = 193/8q - ½ q^2 + ⅔ q^3 +…

Q: Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC…

A: We are going to solve for profit and cost to answer this question.

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Perfectly competitive market is a market structure where all seller sell identical products, firm…

Q: A perfectly competitive market is described by the demand curve QD= 60 – 2P, and the supply curve QS…

A: The equilibrium price is the only price where the plans of consumers and the plans of producers…

Q: The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q…

A: ANS Demand : P = 40 – 0.25Q Supply : P = 5 + 0.05Q Total Revenue (TR) = Price × Quantity demanded.…

Q: Consider a firm in a perfectly competitive market. The firm’s marginal cost, average cost and…

A: Suppose that the current market price is p=10. In order to maximize its profit, the firm will…

Q: Imagine a firm in a perfectly competitive market has the short run cost function SRTC=200+10q+0.5q2,…

A: Short-run total cost (SRTC) The SRTC is a cost in the production process that has a short-term…

Q: In the long run, you are given the following: The total revenue curve is TR= -4Q^2 + 28Q +235. The…

A: Given: TR = -4Q2 + 28Q + 235 AVC = 4Q - 36 + 100/Q

Q: Construct a short-run supply schedule for the firm and indicate the profit or loss incurred at each…

A: We have to construct the supply schedule from the given unit cost data. We know that the supply…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 22 firms in…

A: Total firms in the market=22 Each firm's total cost function is TC=473+2q+q2 and marginal cost…

Q: In a perfectly competitive market, the market demand and supply curves are given by Q, = 1000 - 10P,…

A: A perfectly competitive firm is a price taker as there are large number of firms selling identical…

Q: where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is…

A: The competitive market or perfect competition is a market type which is characterized by a large…

Q: The short-run supply curve for a price-taking firm is given by: Select one: a. its short-run…

A: A firm operating in a perfectly competitive market is reffered to be as a price taking firm. This…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: Given: Total Cost : TC=470+13q+q2 Marginal Cost : MC=13+2q Market Demand: P=401-2Q

Q: The competitive fırm's long run supply curve slopes up based on the assumption of constant returns…

A: Explanation Under competitive firm in the long run the supply curve is upward sloping because the…

Q: The short-run market demand and supply for Kente cloth are expressed as follows: Demand: ? = 40 −…

A: Given Demand PD = 40 - 0.25Q Supply PS = 5 + 0.05Q Marginal Cost MC = -20 + 4Q

Q: The cost function faced by a firm in a perfectly competitive market is the following ctyl-dy+10y+25,…

A: Total Cost (C) = 4y2 +10y+25 Average Total Cost (ATC) = C/y ATC = 4y + 10 + 25/y

Q: Consider a perfectly competitive market in which each firm's short-run total cost function is C= 25+…

A: Answer -

Q: Consider in perfectly competitive market the following demand and supply equations for sugar: Qd…

A: Answer Quantity demanded is the total demand for the products and services manufactured in an…

Q: A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 -…

A: Hi! thankyou for the question but as per the guidelines, we answer only 3 parts at one time. Kindly…

Q: Exercise 2: A perfectly competitive firm produces two goods, X and Y, which are sold at £36 and £200…

A: Given; Price of good X= £36 per unit Price of good Y= £200 per unit Total cost; TC=3x3+2y2-A where;…

Q: Given Cost and Revenue functions C(q)=q^3-11q^2+55q+5000 and R(q)=−3q^2+2400q, what cost is incurred…

A: Hi there , as per our guidelines we are only allowed to solve up-to 3 sub parts of a question at a…

Q: The demand for bicycles is given by the equation: Q = 1000 – 5P - There are currently 100 identical…

A: Given information Market Demand function Q=1000-5P Firms Cost functionC=252q2+20q+50 There are 100…

Q: A competitive firm has the short-run cost function C(y) = 4y3 -2y2 + 10y + 2. a) At what price will…

A: Cost structure refers to the different types of cost associated with the production and selling of…

Q: The short run supply curve of a firm is a) marginal cost curve b) average total cost curve c)…

A: A concept that describes the total quantity available to consumers of a specific service or goods is…

Question

The short-run market demand and

supply for Kente cloth are expressed as follows:

Demand:P=40-0.25Q

Supply: P=5+0.05Q

Marginal cost: -20+4Q

a) Find short run level of output.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If bus travel is an inferior good, its income elasticity of demand is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomacs closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. What is the arc cross elasticity of demand between Potomacs oven and the competitive Spring City model? Would you say that these two firms are very dose competitors? What other factors could have influenced the observed relationship? If Potomac knows that the arc price elasticity of demand for its ovens is 3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?
What is the price elasticity of demand for a vertical demand curve? a. Perfectly inelastic b. Inelastic but not perfectly inelastic c. Unitary elastic d. Elastic but not perfectly elastic e. Perfectly elastic
Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a. Calculate the price elasticity of demand between 90 and 110. b. Is the price elasticity of demand between 90 and 110 elastic, unit elastic, or inelastic? c. Will Erins total revenue rise if she increases the price from 90 to 110? d. Calculate the price elasticity of demand between 110 and 130. e. Is the price elasticity of demand between 110 and 130 elastic, unit elastic, or inelastic? f. Will Erins total revenue rise if she increases the price from 110 to 130?