EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 11, Problem 2P
To determine
Average Total Cost .
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Students have asked these similar questions
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
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?
PLEASE ANSWER WITH GRAPH: Suppose that an industry is initially at a long-run competitive equilibrium. Originally,
firms in the industry had very low fixed costs, but due to a new law, firms' fixed costs increased significantly. Throughout
all these changes, the industry remains competitive. Graphically show how this new law changes the industry in both the
short run and long run. To receive full credit, you must: Correctly show how the law changed the MC, AVC, ATC, LRS,
Demand and Short - Run Supply Curves (if at all). Correctly show profits at the firm level immediately after the new law
is put in place and in the long run. Correctly show how the market will adjust to the new long-run competitive
equilibrium. Clearly show how the long-run equilibrium market quantity and market price
Chapter 11 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
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