Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 23, 2024

3.Consider a perfectly competitive market. Assume that market demand is P=100 - QD and market supply is P=0.5Qs. Denoting the firm level quantity by q,

3.Consider a perfectly competitive market. Assume that market demand is P=100 - QD and market supply is P=0.5Qs. Denoting the firm level quantity by q, assume TC=5q+2q4q3 so that MC=5+4q+3q2.
a) In the short run, there are 50 firms in the market, find the market equilibrium price and quantity.
b) Find the short run profit for a typical firm.
c) Find the long run (free entry and exit) equilibrium price and the number of firms.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

Students also viewed these Economics questions

Question

★★★★★

Define or explain: a) Marginals b) Pareto diagram c) Nonresistant statistics d) Lower unit control e) The five-number summary

Answered: 1 week ago

Question

★★★★★

4. Invent at least three agreements that allow mutual gain. Brainstorm, focus on goals, think creatively, and make sure everyone has power to invent solutions.

Answered: 1 week ago

Question

★★★★★

In Problem 3- 27, Farm Grown, Inc. has reason to believe the probabilities may not be reliable due to changing conditions. If these probabilities are ignored, what decision would be made using the...

Answered: 1 week ago

Question

★★★★★

please help will make sure to give thumbs up!! ELM Company paid a dividend of 51 25 on its common stock yesterday invastorn require a 12% ratum and the growth rate in dividends is axpected to be 75....

Answered: 1 week ago

Question

★★★★★

Their next objective is to find the hideout of a third agent, named Adam. Adam is very cautious. and never strays far from his hideout. Through careful observation, Angelina notices that Adam never...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

Your company intends to invest in FinTrans, a fintech company that facilitates convenient transfer of funds across borders. You will be able to influence FinTrans' product development so that your...

Answered: 1 week ago

Question

★★★★★

Last chance to redeem my terrible drawings! h d3 m dz The simplified image above depicts how water towers provide pressure to homes in the surrounding area. A tower maintains a reservoir of water at...

Answered: 1 week ago

Question

★★★★★

Question 1: (Suggested 250 words per section) 1.1 What items might Susan present to the GM regarding the value of a green program in addition to the potential for business such as CERES? 1.2 What...

Answered: 1 week ago

Question

★★★★★

In your personal circumstances at this point in time, which would you prefer - a defined benefits plan or a defined contributions plan? Explain

Answered: 1 week ago

Question

★★★★★

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct...

Answered: 1 week ago

Previous Question Next Question