The widget industry is a constant-cost industry, so that all firms are identical. The following chart shows
Question:
The industry is in long-run equilibrium and there are a hundred firms.
a. What are the fixed costs at each firm?
b. What is the price of awidget?
Transcribed Image Text:
Industry-Wide Demand Price Firm's Marginal Cost Curve Quantity Marginal Cost $2 Quantity 500 400 300 200 100 $2 4 12 12 25 10 15 15
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
ab The firms shortrun supply curve is equal to its marginal cost curve The indu...View the full answer
Answered By
HILLARY KIYAYI
I am a multi-skilled, reliable & talented Market analysis & Research Writer with a proven ability to produce Scholarly Papers, Reports, Research and Article Writing and much more. My ultimate quality is my English writing/verbal skill. That skill has proven to be the most valuable asset for project writing, Academic & Research writing, Proofreading, HR Management Writing, business, sales, and a variety of other opportunities.
4.80+
24+ Reviews
60+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
In a perfectly competitive market, all firms are identical there is free entry and exit, and an unlimited number of potential entrants. Now, the government starts collecting a specific tax t. What is...
-
What are budgeted fixed costs at normal volume?
-
The widget industry is competitive. Widget factories pollute the neighborhoods where they are located. The following diagram shows the demand for widgets and the private and social marginal cost...
-
Whitmore Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2020. The bonds pay interest annually. Instructions a. 1. Prepare the journal entry to record the issuance of the bonds. 2....
-
Describe three or more genetic mechanisms that may lead to the rapid evolution of a new species. Which of these genetic mechanisms are influenced by natural selection, and which are not?
-
Solve the given differential equation by undetermined coefficients. y'' + 3y' = 4x - 5
-
Global Eclectic. What does it mean to say the international monetary system today is a global eclectic?
-
Quoton Corporation acquired 80 percent of Tempro Companys common stock on December 31, 20X5, at underlying book value. The book values and fair values of Tempros assets and liabilities were equal,...
-
Suhaila invested a certain sum of money in an account that pays 5% compounded quarterly. The account will amount to RM1000 in 27 months time. Calculate the original principal that was invested
-
Not surprisingly, Tarek still has several thousand dollars in student loans outstanding. When he graduated from college, he had federal loans of $48,100, with an average APR of 5.40%. Six months...
-
Suppose health clinics form a competitive constant-cost industry. One day, the government unexpectedly opens a new clinic, which treats 800 patients a day for free. a. In the short run, what happens...
-
In Problem, suppose that the city imposes a license fee of $11 per firm. a. In the short run, what is the new price of a widget? b. In the long run, what is the new price of a widget? c. In the long...
-
Selected T accounts for Victoire Esthetics on August 31, 2017, are as follows: Instructions (a) Prepare a statement of owner's equity for August 2017. (b) Prepare entries to close the Income Summary...
-
The operation manager of Marcoba Bhd is seeking your advice on his company s request for a computer software to be used in managing the sales of the company. He is unsure of how to obtain the...
-
Water flows through a pipe with an exit velocity of 1 5 m / s through a pipe 4 7 m long made from Cast Iron with a diameter 3 0 mm . The pipe is inclined downwards, with a difference in height...
-
Please help in below question: Below is the code which is in the veg editor : https://vega.github.io/editor/#/examples/vega/scatter-plot-null-values. Code below: Please execute this in above link. {...
-
3 . You are replacing an old natural gas fired furnace, the old furnace was firing at 1 4 0 MBtuh. The heat loss calculations determined that the house, 1 2 0 0 square feet required 4 5 Btuh / square...
-
The skin friction coefficient of a laminar boundary layer developing over a flat plate is measured as 0 . 0 0 3 8 3 , a certain distance downstream of the leading edge of the plate. The working fluid...
-
In an engineering concern, the employees are paid incentive bonus in addition to their normal wages at hourly rates. Incentive bonus is calculated in proportion of time taken to time allowed, of the...
-
What is the purpose of the journal wizard?
-
The assumption that an entity will continue to operate for the foreseeable future is called: A. accrual basis. B. comparability. C. going concern.
-
A large project requires an investment of $200 millions. The construction will take 3 years: $30 million will be spent during the first year, $100 million during the second year and $70 million...
-
Two alternatives are being considered: Both alternatives provide an identical benefit. (a) Compute the payback period if Alt. B is purchased rather than Alt. A. (b) Use a MARR of 12% and benefit-cost...
-
Tom Sewell has gathered data on the relative costs of a solar water heater system and a conventional electric water heater. The data are based on statistics for a mid-American city and assume that...
-
It's important to know the unmodified report and the different modified reports for the audit of financial statements. You must also recognize situations that would require a modified opinion....
-
Practice assignment Problem 4 Payroll Liabilities 2 Journal Entries Below is payroll information for Glaser Company for the pay period ending. September 30th Prepare the 2 Journal entries needed...
-
Since 1981, family-owned Southern Tool has grown into the ultimate destination for hard working do-it-yourselfers and professionals. Southern Tool Corporation has two divisions: Hand Tools and Power...
Study smarter with the SolutionInn App