Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter P3, Problem 3KC
To determine
The long run industry supply curve.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The long-run supply curve of a perfectly competitive industry with increasing costs is:
a) Perfectly inelastic
b) With positive slope
c) Perfectly elastic
d) With negative slope
A firm operates in a perfectly competitive industry with the following totoal production function:
π (q) TR(q) - TC(q) = 20q - TC(q) where TC(q) = 50 + 4q + 2q2
a) find the firm's demand and supply functions
b)Find the profit maximizing output. Is the firm making above normal profits?
c)What is the long-run equilibrium?
You are the manager and selling your product in a perfectly competitive firm market. Your firm and other firms sell the product at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2 Q2.
What level of output should you choose to maximize profits?
What are your firm’s short run profits?
What will happen in your market in the long run? Explain.
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
- Which of the FF. shows the connection between the short run and the long run equilibrium? A. positive economic profits in the short run attracts other firms to enter the industry B. negative economic profits in the short run forces the losing firms to exit from the industry C. the entry and exit will stop once the economic profits become zero, thus, attaining a long run equiilibrium D. all are correct E. none is correctarrow_forwardA perfectly competitive firm that is maximizing profits will experience which of the following price changes in response to an increase in variable costs? In the short run, the firm’s price will: a. stay the same.b. increase.c. decrease.d. decrease and then increase in the long run.e. increase and then decrease in the long run.arrow_forwardA company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? Explain.arrow_forward
- In an increasing cost industry, the long-run market supply curve is _____ because the long run ______ is increasing. downward sloping; average variable cost (AC) upward sloping; fixed cost (FC) downward sloping; marginal cost (MC) upward sloping; average cost (AC) .arrow_forwardIn a perfect competitive industry, the market price is R20. An individual firm produces output at which MC=R25. What should the firm do to maximise profits or to minimise losses in the short run? A. they should leave the output unchanged. B. they should increse production. C. they should decrease production. D. they should shut down.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning