There are 96 producers in the perfectly competitive market of Queen Elizabeth II commemorative tea cosies....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
There are 96 producers in the perfectly competitive market of Queen Elizabeth II commemorative tea cosies. Of those 96, 70 each have the following short-run total cost curve: STC(Q) = 22.5 +0.1Q² + 20Q, where Q is output (meaning each have short-run marginal cost curve SMC(Q) = 0.2Q +20). The remaining 26 each have the following short-run total cost curve: STC(Q) = 40 + 0.1Q² (meaning each have the short-run marginal cost curve SMC(Q) = 0.2Q). a) Assuming all fixed costs are sunk in the short run, find each producer's short- run supply curve, and also the market supply curve. b) Assuming all fixed costs are nonsunk in the short-run, find each producer's short-run supply curve, and also the market supply curve. c) Assume again that all fixed costs are sunk in the short run. If the market de- mand curve is Q = 8990-300P, what is the short-run equilibrium price and quantity? d) Assume again that all fixed costs are nonsunk in the short run. If the market demand curve is again Q = 8990-300P, what is the short-run equilibrium price and quantity? e) Suppose that in the long run, all firms face the following total cost curve: TC(Q) = 600.625 +0.1Q² (meaning each have the marginal cost curve MC(Q) = 0.2Q). As well, firm entry and exit is possible in the long run. Assuming market demand is Q = 8990-300P, how many producers will there be in the market in the long run? There are 96 producers in the perfectly competitive market of Queen Elizabeth II commemorative tea cosies. Of those 96, 70 each have the following short-run total cost curve: STC(Q) = 22.5 +0.1Q² + 20Q, where Q is output (meaning each have short-run marginal cost curve SMC(Q) = 0.2Q +20). The remaining 26 each have the following short-run total cost curve: STC(Q) = 40 + 0.1Q² (meaning each have the short-run marginal cost curve SMC(Q) = 0.2Q). a) Assuming all fixed costs are sunk in the short run, find each producer's short- run supply curve, and also the market supply curve. b) Assuming all fixed costs are nonsunk in the short-run, find each producer's short-run supply curve, and also the market supply curve. c) Assume again that all fixed costs are sunk in the short run. If the market de- mand curve is Q = 8990-300P, what is the short-run equilibrium price and quantity? d) Assume again that all fixed costs are nonsunk in the short run. If the market demand curve is again Q = 8990-300P, what is the short-run equilibrium price and quantity? e) Suppose that in the long run, all firms face the following total cost curve: TC(Q) = 600.625 +0.1Q² (meaning each have the marginal cost curve MC(Q) = 0.2Q). As well, firm entry and exit is possible in the long run. Assuming market demand is Q = 8990-300P, how many producers will there be in the market in the long run?
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below a Assuming all fixed costs are sunk in the short run find each producers shortrun supply ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
What is the use of a voucher package? Document the receipt of inventory Document completion of services Document a purchase contract Document for recording the purchase of goods or services
-
What is the main ethical issue for Heather? How could Heather apply the ethical framework of utilitarianism to frame this ethical issue? How could Heather apply the ethical framework of egoism to...
-
1 What is the project duration and what is the critical path? 2 The board were hoping to launch the new range in the next 9 months. From your analysis, could this be achieved? 3 Where would you...
-
During a worldwide recession in 1983, the oil cartel began to lower prices. Why would a recession make the cartel more vulnerable to price cutting? How would the reduced demand be shared between the...
-
Suppose that X and Y are independent random variables with the following p.d.f.'s: Determine the value of Pr(X > Y). 1for 0 <1. 0 otherwise, fi(x) 60)-18y for 0 < y < otherwise. 0
-
Your organisation is experiencing a high labour turnover in recent years and management would like you to submit a report on the loss suffered by the Company due to such labour turnover. Following...
-
What is the main difference between environmental accounting and ecological accounting?
-
A coil with 150 turns, a radius of 5.0 cm, and a resistance of 12 surrounds a solenoid with 230 turns/cm and a radius of 4.5 cm; see Fig 21-54. The current in the solenoid changes at a constant rate...
-
Some Company uses the allowance method for handling receivables. Total Sales for the year were $1,050,000 ($725,000 credit sales and $325,000 cash sales). The unadjusted balance for Accounts...
-
Does how long young children remain at the lunch table help predict how much they eat? Here are data on a random sample of 20 toddlers observed over several months. Time is the average number of...
-
Nationalian Inc., a dealer of household appliances, sells washing machines at an average price of P8,100. The company also offers to each customer a separate 3-year warranty contract for P810 that...
-
If you have ever tried to follow a set of confusing, poorly written instructions, you know how important it is to be able to communicate the steps of a procedure in a clear, well-organized way. In...
-
Cross-cultural team norms and diversity can be negative as there will be a lot of clashes over old ideals and cultural expectations is this true? or can diversity in a team get along as there are...
-
K Kaman Company purchased a building and land with a fair market value of $425,000 (building, $250,000 and land, $175,000) on January 1, 2024. Kaman signed a 30-year, 9% mortgage payable. Kaman will...
-
Using the slope-defection method or the moment-distribution method, analyze the frame shown. In addition to the effects of the uniformly distributed loading, stresses and strains are caused because...
-
Explain briefly each phase of the historical background for employee benefits.
-
When the wavelength for maximum light emission of a scintillator is 450 nm, what is the energy of the light photon?
-
1. Which of the four major types of information systems do you think is the most valuable to an organization? 2. How do you critically associate the ideas of business agility and business efficiency...
-
Why is it important to know the customer for a proposal document?
-
What are the benefits and limitations of the quantitative and qualitative approaches to risk assessment?
-
Compile a list of project roles based on one of the project management standards (PMI, APM or PRINCE 2 2009). Which is the most important role in your view for the success of a project?
-
For each of the following events concerning disclosure of events that took place after year end, discuss the manner in which it should be disclosed in the financial statements or the audit report....
-
Determining whether a subsequent event requires an adjustment to the financial statements is difficult in many circumstances. Discuss the primary difference between subsequent events that require...
-
Each of the following techniques for managing earnings was described in the chapter: - "Big Bath" charges - Write-off of acquired assets - "Cookie Jar" reserves - Abuse of materiality - Questionable...
Study smarter with the SolutionInn App