1-4 answered

need 5-6

Problem 2. In the same city as before (eg same demand), a new quick malo map bracelet (QM) technology is discovered. Vendors using QM face a total cost function COM ) - 4 + . While the 80 existing vendors keep their old, regular make (RM), technology. Twenty new vendors enter using QM technology. The bracelets produced by the two technologies are identical and consumers value them exactly the same. You may assume there is free entry in both technologies in the long run. 1. The promotes of QM technology point out that although it may appear more expensive at first, it benefits from greater economies of all than RM plain what they mean, feel free to me a merical example 2. How many bracelets is cach QM vendor willing to supply at price P? 3. Given that there are 80 RM vendors and 20 QM vendors, how many bracelets are produced when the market price is P? 4. What is the new short-run equilibrium price in this market? 5. Is the market in long-run equilibrium? Explain why or why not 6. You are hired as a consultant by a vendor thinking of entering the snap-bracelet market. Which technology do you suggest they adopt? Question 1 for Reference Problem 1. Suppe that in a large city 80 identical vendors wil snap bracelets in a perfectly competitive market. Each vendor has a marginal cost of MC(O) - 2+2 and no fixed costs of production 1. How many snap-bracelets will each vendor produce if offered a price of $7 per bracelet? What is their marginal revenue at this price? 2. For a given price P, how many snap-bracelets are produced in this market (hint: the operate supply curve)? e be Q=1600 - 100P. What is the short run 3. La demand for map b equilibrium price? 1. How many map bracelets are sold in short-run equilibrium? 5. Often regulators do not observe internal firm information such as profits or marginal cost. However, statistics on quantities sold, prices, and eve n ts are more readily available as firms publish reports on these numbers. Using only information on equilibrium quantity (9.). price (P), and average cost (AC )) from your previous calculations, can you recover cach snap-bracelet vendor's illum profit ? If not, explain why not 6. Given your answer above, would you expect more or fewer sap bracelet vendors in the long run? Problem 2. In the same city as before (eg same demand), a new quick malo map bracelet (QM) technology is discovered. Vendors using QM face a total cost function COM ) - 4 + . While the 80 existing vendors keep their old, regular make (RM), technology. Twenty new vendors enter using QM technology. The bracelets produced by the two technologies are identical and consumers value them exactly the same. You may assume there is free entry in both technologies in the long run. 1. The promotes of QM technology point out that although it may appear more expensive at first, it benefits from greater economies of all than RM plain what they mean, feel free to me a merical example 2. How many bracelets is cach QM vendor willing to supply at price P? 3. Given that there are 80 RM vendors and 20 QM vendors, how many bracelets are produced when the market price is P? 4. What is the new short-run equilibrium price in this market? 5. Is the market in long-run equilibrium? Explain why or why not 6. You are hired as a consultant by a vendor thinking of entering the snap-bracelet market. Which technology do you suggest they adopt? Question 1 for Reference Problem 1. Suppe that in a large city 80 identical vendors wil snap bracelets in a perfectly competitive market. Each vendor has a marginal cost of MC(O) - 2+2 and no fixed costs of production 1. How many snap-bracelets will each vendor produce if offered a price of $7 per bracelet? What is their marginal revenue at this price? 2. For a given price P, how many snap-bracelets are produced in this market (hint: the operate supply curve)? e be Q=1600 - 100P. What is the short run 3. La demand for map b equilibrium price? 1. How many map bracelets are sold in short-run equilibrium? 5. Often regulators do not observe internal firm information such as profits or marginal cost. However, statistics on quantities sold, prices, and eve n ts are more readily available as firms publish reports on these numbers. Using only information on equilibrium quantity (9.). price (P), and average cost (AC )) from your previous calculations, can you recover cach snap-bracelet vendor's illum profit ? If not, explain why not 6. Given your answer above, would you expect more or fewer sap bracelet vendors in the long run