The supply curves for the only two firms in a competitive industry are given by: S₁: P = 2Q₁ S2: P = 2 + Q2, where Q₁ is the output of firm 1 and Q2 is the output of firm 2. These two supply curves are shown in the graph below. Draw the market supply curve for this industry. Instructions: Use the tool provided to plot 4 price-quantity combinations for prices $0, $2, $4 and $6. 0 Market Supply 7 6 5 4 3 2 1 0 1 2 $₁ 3 4 $₂ Quantity 5 6 7 8 Tools line tool
Q: Alex and Mitch are two farmers who grow vegetables on common land. Each farmer gets a benefit from…
A: Nash equilibrium Nash equilibrium is a concept in game theory that represents a stable state in a…
Q: Consider a market where the inverse demand function is P = 100 - Q. All firms in the market have a…
A: The monopoly firm refers to the firm which control entire market and it is price maker. There is no…
Q: (a) Derive the equilibrium in this economy without an intermediary bank. How much would people…
A: Solving all parts (a), (b), (c) and (d) stepwise below.
Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…
A: Profit maximization is a fundamental goal for businesses aiming to achieve financial success. It…
Q: Michael has the utility function u(x, y) = √x + √y. Michael's preferences are strongly increasing…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Which of the following represents the maximum amount the economy can produce while maintaing price…
A: Price stability refers to a situation in which the general price level in an economy remains…
Q: Elasticity is the relationship between price and available quantity in an economic market. Choose…
A: Elasticity, in the economics, It refers to the method of measurement of how much sensitivity of the…
Q: Walt Wallace Construction is investigating the purchase of a new dump truck with a 10 year useful…
A: Model Purchase price Annual Operating Cost Annual Income Salvage Value A $50,000 $2,000 $9,000…
Q: Use the graph input tool to help you answer the following questions. You will not be graded on any…
A: Demand Factor Value Average American household income $40,000 per year Roundtrip airfare…
Q: What is the difference between the price of oil in the market for oil and the price of reserves in…
A: The price of oil in the market for oil refers to the current market price at which oil is bought and…
Q: If Firm 1 chooses to release the console in October with probability of 0.692 or December with a…
A: In game theory, a game tree is a graphical representation that depicts the sequential…
Q: You run a small classroom market experiment with only three buyers and three sellers. The…
A: Social surplus, also known as economic surplus or total surplus, refers to the overall benefit or…
Q: Consider an industry in which the production technology yields the cost function C(Q)=1800+(3Q)².…
A: Assessing both expenses and earnings is essential when setting reasonable rates for products and…
Q: Based on the table provided, answer the following questions: Compute the U.S. dollar–yen exchange…
A: Exchange rates refers to price of one currency with respect to price of other currency .
Q: 4. An effective 12.68% per year, compounded monthly, is the closest to: B) 12% per year, A) 12% per…
A: The effective interest rate is simply the interest rate charged yearly or compounded monthly. It is…
Q: Suppose that in the short-run (Labor is the only variable input) when output equals 50, (1) the firm…
A: Cost refers to the value or expenditure incurred in the production, acquisition, or consumption of…
Q: Two firms A and B manufacture video game consoles. Firm A's console is less tech- nologically…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: 1. The market demand curve for mineral water is given by P = 15 - Q. If there are two firms that…
A: In the cournot model, there are two firms and these firm competes on the basis of output. In…
Q: Walt Wallace Construction is investigating the purchase of a new dump truck with a 10 year useful…
A: As the formula for the present value is: P = F(1+R)tWhere, 1/(1+R)t is the discount factor F =…
Q: Question: A. Describe "Repercussion Effect"
A: The term "repercussion effect" refers back to the consequences or influences that result from a…
Q: Read each article linked below and summarize the implications of the events being discussed using…
A: Food security rules and regulations, the welfare of animals prerequisites, limitations on trade, and…
Q: Refer to the figure at right. Which allocation is efficient? OA. A and B OB. B and C OC. C and D OD.…
A: A situation in which resource distribution is optimized so that no one can be made better off…
Q: The data in the following table represent price level changes and interest rate changes over a…
A: The forex market, also referred to as forex, FX, or the currency market, holds the distinction of…
Q: Are there any implications of the finding for policy makers or business leaders?
A: In the given experiment, the bidding behavior of two groups was studied. The two groups were,…
Q: units of pharmaceuticals, but the socially optimal quantity of pH To create an incentive for the…
A: Social cost refers to the cost suffered by society as a result of any specific economic activity or…
Q: Price per Saddle P₂ P₁ 0 G A C 1 91 92 O P1 and Q1. P1 and Q4. 0 P2 and Q2. O P2 and Q3. B & le…
A: Organizations are able to benefit from scale efficiencies through engaging in international trade…
Q: The accompanying graph represents a hypothetical market for luxury automobiles. Suppose that a major…
A: A luxury good is good that has an income elasticity greater than 1 means the proportionate increase…
Q: The figure to the right shows the initial market supply (S₁) and market demand (D₁) curves for the…
A: Long-run average total cost (LRATC) refers to the average cost per unit of output in the long…
Q: igure 5 P4 P3 P2 P1 P.P.P 222 210 PO Price k B C २० O J FLE A H jQ2 Q3 Q4 Sample Answer: Area P₁KTM…
A: A monopolist maximizes its profit by determining the level of output at which its marginal revenue…
Q: Suppose the market demand for organic grass-fed beef is given by Q=100-2P and the supply is given by…
A: Note: “Since you have posted a question with multiple sub-parts, we will provide the solution only…
Q: The supply and demand schedules for a local electric utility are as follows in the table below. The…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: un the central bank in a large open economy.Your goal is to stabilize income, and you adjust the…
A: The exchange rate can be expressed as the rate at which one currency can be exchanged for the…
Q: Suppose the labor market is segmented into two distinct markets: the market for low-skill workers…
A: In economics, a competitive equilibrium wage refers to the wage rate that is determined in a…
Q: 1. Using the IS-LM-FX model, illustrate how each of the following scenarios affect the Home country.…
A: The IS-LM-FX model is an economic framework that combines elements of the IS-LM model and the…
Q: QUESTION 6 Assume the peanut industry, a perfectly competitive industry, is in long-run equilibrium…
A: Equilibrium in the market occurs at the intersection of demand and supply curves.
Q: This information suggests that: A. China is the only country besides the United States that makes…
A: Globalization is the process of increasing interconnectedness and integration of countries and…
Q: Country X's long run full employment level of Real GDP is estimated to be $22,900,000. However, the…
A: In macroeconomics, understanding the concept of potential output and its relationship with actual…
Q: Matt only derives utility from consuming milk shakes. Each week, Matt devotes his entire $20…
A: The utility is the satisfaction that is derived from the consumption of good. The utility level…
Q: Two firms A and B manufacture video game consoles. Firm A's console is less tech- nologically…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: Which assumption(s) is (are) necessary for an efficient allocation of resources among firms? O…
A: A market is a set of systems, institutions, procedures, social interactions, or infrastructures that…
Q: In a perfectly competitive market, MR = Instructions: In order to receive full credit, you must make…
A: By definition, MR = change in the total revenue due to 1 addition unit sold in the market => MR…
Q: growth b. If the government expenditures and tax revenues in 2021 are ₺7700 and £5000, respectively,…
A: Nominal GDP is the overall economic output of production at the current market prices. Real GDP is…
Q: O internal cost. O internal benefit. external cost. external benefit. ep .lassily
A: Internal and external costs & benefits are the economic concepts. The costs explain the expenses…
Q: SEEDS PLANTED BY ALEX 100 80 60 40 20 0 20 40 60 80 SEEDS PLANTED BY MITCH 100 O Alex's BRF O-…
A: The tragedy of the commons is a concept in game theory and economics that describes a situation…
Q: Solve for the mixed strategy Nash equilibrium of the game above. Explain carefully how you solve for…
A: NE is the point of a game corresponding to which each participant optimizes his strategies and…
Q: Suppose Gilberto runs a small business that manufactures shirts. Assume that the market for shirts…
A: In economics, both revenue and cost analyses have significance due to the fact that they provide…
Q: Frustrated with DTCs monopoly, several diamond mining interests and large retailers collectively set…
A: In economics, monopoly refers to a market structure in which there is only one seller or producer of…
Q: Hi, I was looking to get ideas on main topics for my persuasive speech. The speech is on the…
A: According to me there various reason behind funding schools:- 1. Hire professional teachers:- If we…
Ab 41
Subject - Economics
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2 Marginalcost:MC=q where q is an individual firm's quantity produced. The market demand curve for this product is Demand:QD=120−P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market.1. Give the equation for the market supply curve for the short run in which the number of firms is fixed.2. What is the equilibrium price and quantity for this market in the short run?3. In this equilibrium, how much does each firm produce? Calculate each firm's profit or loss. Is there incentive for firms to enter or exit?4. In the long run with free entry and exit, what is the equilibrium price and quantity in this market?5. In this long-run equilibrium, how much does each firm produce? How many firms are in themarket?Consider a competitive market in which the market demand for the product is expressed as P = 75 ‑ 1.5Q, and the supply of the product is expressed as P = 25 + 0.50Q. Price, P, is in dollars per unit sold, and Q represents rate of production and sales in hundreds of units per day. The typical firm in this market has a marginal cost of MC = 2.5 + 10q. Determine the equilibrium market price and rate of sales (output). Show your working. Determine the rate of sales (output) of the typical firm, given your answer to part (i) above. If the market demand were to increase to P = 100 ‑ 1.5Q, what would the new price and rate of sales in the market be? What would the new rate of sales (output) for the typical firm be?. Show your working If the original supply and demand represented a long‑run equilibrium condition in the market, would the new equilibrium (iii) represent a new long‑run equilibrium for the typical firm? ExplainSuppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Assuming that the firm operates in a perfectly competitive market, supply the missing values in the table above. You may use a spreadsheet program to compute the values but must provide a step-by-step…
- Consider in perfectly competitive market the following demand and supply equations for sugar:Qd =1000-1000p where Q d is quantity demanded and Qs is quantity supplied. Qs=800+ 1000p Where P is the price of sugar per pound and Q is thousands of pounds of sugar. (a) Suppose that the government wishes to subsidize sugar production by placing a floor on sugar prices of $0.20 per pound. What would be the relationship between the quantity supplied and quantity demand for sugar?(b) Identify market problem specifically at prices 0.2 per pound and what will be scientific recommendation you suggest to solve the identified market problem?Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2 Where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Q = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost? At what quantity efficiency of scale would be achieved? Give the equation for each firm’s supply curve Give the equation for the market supply curve for the short run What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit? In the long run with free entry and exit, what is the equilibrium price and quantity in this market? In the long-run equilibrium, how many firms are in the market?Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2 Where q is an individual firm’s quantity produced. The market demand curve for this product is Demand: Q = 120 – P Where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market What is each firm’s fixed cost? What is its variable cost? At what quantity efficiency of scale would be achieved? Give the equation for each firm’s supply curve Give the equation for the market supply curve for the short run What is the equilibrium price and quantity for this market in the short run? In this equilibrium, how much does each firm produce? Is there incentive for firms to enter or exit? In the long run with free entry and exit, what is the equilibrium price and quantity in this market? In the long-run equilibrium, how many firms are in the market? I want the subparts 4,5,6 to be solved. Thank you
- Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 30 firms. If there were 10 firms in this market, the short-run equilibrium price of steel would be per ton. At that price, firms in this industry would…Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for titanium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 30 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 40 firms. If there were 20 firms in this market, the short-run equilibrium price of titanium would be $_______ per pound. At that price, firms in this…
- Suppose 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…Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly. On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the…